LeapRate Exclusive Interview… Following our exclusive coverage of Forex broker solutions provider MahiFX becoming the latest FX sector company to receive an FCA license, we are pleased to present to LeapRate readers our conversation on the topic with Nick Mortimer, Head of MFX Retail Sales for MahiFX.
Does the FCA license change the way MahiFX does business?
What’s going on with Forex brokers in the wake of the FCA’s new proposed rules governing leverage and client bonuses?
See what Nick has to say about these topics, and a whole lot more…
LR: Hi Nick, and congrats on the new FCA license. What did the process for getting your FCA license involve, and how did you find it?
Nick Mortimer, MahiFX
Nick: Thanks, we are extremely happy to have received our FCA license, especially as our application process coincided with regulatory tightening across Europe and in particular the proposed FCA rule changes.
LR: MahiFX has a number of product offerings, both retail and institutional. What are the key products and services you now offer to brokers? Do you take on retail clients directly as well?
Nick: We developed MFX Compass to allow brokers full transparency and control of their flow. There were no products in the market that offered a suite of toolsets to identify and manage specific flow, whilst also offering a personal service to maintain the product. Integrating these tools into the broker allows them to perform advanced Risk Management to increase their profitability.
Our retail platform, MFX Trade, continues to operate alongside MFX Compass. We’re fortunate that we have some loyal retail customers who enjoy this platform while we also provide MFX Compass to the broking community.
LR: What are your plans in the UK (and beyond) now that you have an FCA license? How does it change either what you can offer, and which clients you can work with?
Nick: Having the FCA license really just reaffirms that we’re about being honest and fair. We have never had any hidden fees or costs associated with our products, and MFX Compass operates entirely on a profit share basis. Our clients don’t have to pay anything until they begin to profit from our product and service, and we intend to maintain a fair offering going forwards. So, this doesn’t really affect which clients we can now work with, rather, it just demonstrates that the increasingly strict standards set by the FCA are continually being met, whilst reinforcing our status as a business that prioritises integrity and security to both present and future client – this is what is important to us right now.
As we are already regulated with ASIC and the New Zealand Financial Markets Authority, customers will have the peace of mind that they are dealing with a multi-regulated entity, one that fully understands global governance and compliance.
LR: The FCA licensed brokerage market is obviously going through some major changes, in part driven by the FCA’s new proposed rules governing leverage and bonuses (although those rules have yet to be finalised). From your perspective, how do you see the FX broker market changing? Do you see consolidation ahead? And how does that work in to MahiFX’s business plan?
Nick: The capital and regulatory tightening is, without doubt, changing the FX Broker market and in particular it’s making them think differently about their business. Although there may be some consolidation in the long term, in the short term brokers are looking for solutions to manage a more competitive business within the new regulatory boundaries. As many are taking a more analytical approach to effectively manage flow, risk and optimise profitability, MFX Compass is being deployed to assist.
LR: What else can we expect to see from MahiFX in the coming months?
Nick: Right now we’re busy onboarding new clients to MFX Compass, while we continue to serve all of our current clients. The product is doing extremely well in the industry and we’re pleased to be getting some very positive coverage on it. One of our new products, MFX Vector, is right in its early stages, and allows buy-side clients to identify and minimise their trading costs. We’re confident that this will do extremely well in the FX space, as MFX Compass has done. So, in short, we expect to have a lot on our plate over the coming months!