Exclusive Interview with Wassim Khateeb: How is FxCubic Adapting to the Evolving Landscape?

Today, Wassim Khateeb, the head of business development at FxCubic, joins Fazzaco to let us know details about FxCubic and how is FxCubic adapting to the evolving landscape.

Fazzaco: Hi, Wassim, thank you for joining Fazzaco. Firstly, can you tell us about FxCubic and your recent developments?

Wassim: Sure. Let me briefly introduce you to our solution;

We design low latency software’s used by retail and institutional brokers for Liquidity connectivity, Price Aggregation, Reporting and Risk/Execution Management.

We have a very sophisticated product, with a lot of unique features that help automate Risk Management and significantly improve the trading environment and scale any brokerage’s profitability.

Our system is integrated to MT4/5 and any other trading system can be integrated using our own FIX API solution. We already have integrated with 100+ industry leading liquidity providers. 

In regards to the recent developments; Actually the last 3-4 years have been a nice story of growth for FxCubic.

Indeed, after careful and very well planned period of development, FxCubic launched first in London, UK and expanded to Cyprus in 2018, The feedback from the industry executives was really positive and encouraging, and the adoption of FxCubic by many reputable brokers has created a good momentum for the expansion of our market share.

This also helped us to keep improving our solution based on the client requests and needs.

Most recently we finalized the development of a new product and we are really excited about it!

It is a real-time risk management monitoring dashboard called RXI, which is built on a very reactive and advanced computer language and that can connect to multiple MT servers to aggregate data and show simply and rapidly the KPIs of the brokerage operation.

We are about to start its commercialization and we believe it has the potential to be a game changer for the industry and of course, for FxCubic.

Fazzaco: What makes FxCubic different from other competitors? What are the strengths of FxCubic?

Wassim: In a nutshell: support, simplicity or user friendly, technology and features. 

Our support team is extremely proactive, we reply within seconds to all requests around the clock and we always go the extra mile to help, advise and reassure our customers through instantaneous and direct channels of contact. Anybody and everybody that has to be involved on a topic is involved and has direct communication with the client.

We look at every client as a business partner and I think it is a rare way of working in this industry where many companies have bureaucratized and procedures have become a burden that slows down business. Our customer-entered approach has been a defining factor in helping us retain our customers for very long periods of time.

We have a very flexible and user friendly technology, which added to the fact that our solution is very stable, helps our clients exploit the market’s volatility to efficiently and painlessly manage their risk and optimize their profitability.

The products and solutions we offer are very advanced in terms of technology and the features that are accessible to our clients from FXCUBIC UI are not only extremely sophisticated and stable, but also unique in this ecosystem, which allows its users to make the best out of every move in the market.

As part of our offering we have automation features that help our clients automate and minimize the risk of error in many day to day tasks. Furthermore, our synthetic instruments engine helps our partners diversify their asset classes offering and improve their trading environment significantly.

Additionally, the fact that we have the connectivity tools, aggregation, risk management, pricing, execution and reporting features, all accessible from one web based user interface hosted in our clients server, simplifies and secures the brokerage operations.

Finally, it is important to mention that FxCubic’s technology has been proven to be extremely stable and reliable in the times of high volatility.

Fazzaco: During COVID-19 outbreak in 2020, what impact has it had on the firm and clients and how FxCubic cope with it during the crisis?

Wassim: To be honest, the impact was rather positive for the business of the clients.

The trading activity of most clients did significantly increase, which is reflected in the very high volatility we experienced recently on the markets. Here I am referring to all asset classes and more specifically to the commodity, FX and Crypto markets.

I also think that in a way, the lockdown and the fact that people are at home has increased the time people spend on trading platforms, which caused a spike in the trading volumes of our clients.

Fazzaco: Multi-asset appears to be the future for trading providers. How can FxCubic help brokers expand their offering and remain resilient during difficult times?

Wassim: I think that in most businesses diversification and customization of the offerings appears to be the way forward, and that applies to the electronic business industry as well. That is why the multi-asset offering is becoming more and more popular.

It is actually a domain where FXCUBIC has a lot to offer to its clients by means of our advanced synthetic instruments creator, which allows brokers to create new, liquid and customized trading assets to respond to their traders’ needs.

Furthermore, the fact that we base our connectivity tools on a FIX API Protocol allows FXCUBIC users to connect and execute on the biggest electronic market places.

​Fazzaco: Brokers often face a dilemma that retail clients don’t accept their explanation on the negative slippage caused by sudden market volatility. In your opinion, how to improve the transparency among brokers, retail clients and liquidity providers?

Wassim: Realistically speaking, I think that traders that expect no slippage at all during high volatility times are simply not reasonable.

Nonetheless, there are many tools to control and minimize the possible slippage but it is not possible to completely remove it.

For example, brokers can choose to absorb that slippage and not transfer it to the traders using FXCUBIC features, but it is of course up to the broker to apply it or not.

I believe the best way to improve transparency is by making clear to the traders the risks that are involved in trading, specifying this on the broker’s website, the T&C and any relevant conversation. As long as the terms are clearly specified and all parties abide by them, then uncomfortable situations should be reduced to a minimum.

Fazzaco: In your perspective from a liquidity provider, how to deal with the extreme market volatility for brokers?

Wassim: Even though many liquidity providers are using our solution, we are strictly a technology company. But from the conversations that we have been having with the liquidity providers, I believe they should prepare by having the right technology with the best risk management tools and to be prepared to match the regulatory and capital adequacy framework and requirements in case of sudden market moves. So the technological setup and the good capitalization of the LPs is key here, which is where FXCUBIC can make a difference and provide a great stable solution.

​Fazzaco: COVID-19 appears to continue in 2021, what is the biggest challenge today in your field?

Wassim: Yes, it looks like this will not be over anytime soon.

I think the biggest challenge is not being able to physically meet our partners and customers and not being able to attend trade shows in order to meet potential clients and promote our solution. Nevertheless, we started to see that these events can be organized virtually to a certain level.

Fazzaco: How is FxCubic adapting to the evolving landscape?

Wassim: ​I think that as every other company, we are adapting but quicker than anyone else, even though it is much less fun :). Online presence has become key with the lack of physical one, so key partnerships and a targeted exposure are the ways we are walking within this evolving landscape.