LeapRate spoke with Natallia Hunik, Global Head of Sales at Fortex, on the topic of hosting for Forex brokers.
Hi Natallia. So why is hosting such an important decision for Forex brokers?
One should never underestimate the importance of platform stability and system “uptime” to an FX brokerage. These are critical aspects of the business that should never be overlooked and it is therefore vital that you make the right choices when considering someone to host your company’s server(s). By entrusting hosting to a third party, you are effectively dependent on that provider’s expertise, reliability and trustworthiness. Remember that, should they fail, every minute of downtime could cost you a considerable amount of money and, perhaps even worse, seriously damage your brand credibility.
Just think about this type of nightmare scenario; clients unable to load their platforms, unable to get out of trades, unable to view their market exposure and, of course, prevented from capturing market movements. Now imagine that is a recurring nightmare, something that happens repetitively. Your brokerage will become known for instability and unreliability and your revenues will suffer as a result. It therefore goes without saying that finding a stable and reliable hosting partner should be a priority when looking to rapidly grow a business. I cringe when I hear of brokerages trying to negotiate cheap hosting fees from unproven providers; after all, just one outage could cost them an entire year’s worth of hosting fees and much, much more. I guess the saying holds true, “penny wise and pound foolish”. You can check for more information about his Canadian Hosting Services.
What are the most important evaluation criteria for the MT4 hosting provider?
We’d list three major issues:
1. Credibility and history of uptime.
You want, and need, your hosting partner to be credible with a history of reliability and to have a presence within the datacenter facilities that host major, top tier financial companies. For an FX brokerage, presence in New York’s NY4 is a must. The majority of firms providing hosting services tend to go through two or three layers of managed hosting providers to get their servers into NY4. Think about it; being two, three or even more steps removed from the actual source/vendor puts you in a position where issues cannot be resolved in a timely manner and where changes cannot be implemented within a desired timeframe.
Fortex, unlike many hosting providers, has its own cage in NY4 and (Hong Kong’s) HK3 and has built up a very impressive infrastructure that is able to handle significant load. We actually upgraded our NY4 infrastructure at the end of this past summer by deploying two new enterprise grade Fortinet firewalls to increase our network bandwidth throughput, allowing us to stream even more market data to our clients (increased number of updates per second).
2. Redundancy, redundancy and redundancy
Redundancy is very high on the list of priorities as this greatly helps to mitigate the risk for the brokerage company. You need to ensure that “hot backup” is in place for your mission critical software and also make certain that everything has built-in redundancy: use at least 2 CPUs, multiple hard drives (with RAID controllers), multiple ISPs, multiple network providers and multiple power sources. The Fortex network always utilizes dual firewalls, dual routers, dual switches, dual paths of connectivity and multiple Internet “backbone” carriers as ISPs; so in reality hot-hot back-up for the database and trading systems, take a look to this affiliate management system.
This is one area of your business where you shouldn’t be looking for savings, but rather for safety.
At Fortex, we understand how critical redundancy is for FX brokerages. Not only do we have five ISPs in our NY4 cage, but we also have multiple network paths. We host our clients on top-of-the-line dedicated hardware to ensure that every eventuality is covered where possible. Fortex network is architected in such a way that there no single point of failure.
Most brokers cannot estimate the amount of bandwidth they will need for their business so, many times, they simply go with whatever the hosting provider offers in their basic package. The big problem with this is that many hosting providers don’t understand the type of business that you are in and the type of software that you are planning to utilize, since there are many different type of businesses that offer different type of products, and sometimes you can even find a great review online of these products to find which serve best to you. They therefore cannot accurately advise you on the right amount of bandwidth to subscribe to. With bandwidth, it’s my opinion that there are two important things to understand:
- Make sure your bandwidth is “burstable”. If you’ve underestimated your bandwidth needs then, at least, make sure it is burstable. This will prevent downtime and connection issues even if you go over your allotted bandwidth. In the NY4 and HK3 datacenters, Fortex Internet bandwidth is burstable up to 2Gbps.
- Also, there is often a misconception that all bandwidth offerings are created equal. This cannot be further from the truth. Most of the players out there use shared bandwidth that is throttled down. Fortex always uses multiple ISP (Internet Service Providers) at the same time. For example, for NY4 we have 5 ISPs, all of whom are Internet backbone carriers, such as Level 3, Verizon and Sprint. This set-up is not just for redundancy but, also to give us the largest global footprint on the Internet.
We locate the users Internet traffic dynamically and route their traffic through the ISP with the most efficient and stable routes. Fortex’s 100mbps bandwidth is really very different from a tier2 or tier3 provider’s 100Mbps bandwidth where those providers are effectively re-selling a bundled line from a backbone carrier. In addition, all of our network gears and routing paths are paired as twins providing hot-hot redundancy in real-time. For example, for the Fortex production, we always run on two core switches, two edge switches and four firewalls at any given moment.
Typically, the discount wholesaler of bandwidth can lease a 1Gbp line and sell 50Mbps of line to fifty, not twenty end users knowing that they won’t all be using their allocated bandwidth at the same time. If they all do, then the peak usage hits 2.5Gbp and multiple packets will be dropped. In fact, often by the time the bandwidth gets to the users it has already been resold two to three layers down. This is why a 5Mbp home DSL or 20Mbps home Cable Internet are nothing when compared to a commercially leased line.
When you surf the web, download a big file, watch video online or work tool SodaPDF software , your 20Mbps line might drop 25% of the packets and retransmit without your noticing but in reality you don’t need those to be real-time. Trading is a completely different story; every drop creates a delay. On Fortex’s internet lines and cross-connect, you can run 20,000 pings and not drop a packet but for many of those other internet services, you will see a 5% 10% or, sometimes, a 20% drop and this will ultimately result in massive trading disruption.
What extra services do you get by working with hosting providers that understand the FX business?
There is a definite advantage to be gained when your hosting vendor fully understands the business that you are in. At Fortex, our IT Team proactively monitors network capacity and latency to deliver the highest possible system uptime to our customers. We also assist our clients with software installation, data migration and will even make occasional recommendations in relation to system optimization.
Clients working with Fortex can take advantage of our standby Network Engineering team who have top notch expertise in working with all major exchanges and ECNs.
With 10+ years of experience in dealing with MT4 under our belt, our global support team delivers dependable and timely assistance and expert service that you can always rely on.
Rest assured that we have the knowhow and discipline to run large scale, mission critical systems, it is in our DNA. Our headquarters, and main operations hub, is in Silicon Valley California and, in everything we do, we remain focused on redundancy, recovery and scale.
Can you expect ZERO problems from your hosting provider?
Issues are unfortunately inevitable and occasional problems will happen, no matter how good of a provider you are dealing with. Your relationship with the hosting provider will strengthen if, instead of pointing fingers and assigning blame, you both work together to understand the situation and then take the necessary steps to ensure that the same problem doesn’t happen again in the future.
Effective Mortgage Broker Marketing Ideas
-Marketing Automation Software | Personalized, Automated Communication
Mortgage broker marketing is not typically something you would think of as innovative. It is based on traditional advertising methods and often it is not very interactive. Marketing automation enables mortgage brokers to create automated messages based on individual client needs and feedback in order to implement mortgage marketing ideas. Let’s look at a few ideas that are all about engaging clients and boosting loyalty, while also reducing your workload.
1) Use social media to your advantage. If you’re not active on social media, you’re missing out on the opportunity to connect with new potential clients. Social media is a great way to show your knowledge as a mortgage broker, connect with other businesses in the community, build brand awareness, answer client questions and more. Use automated social media management to make the most of your time and access inexpensive mortgage leads.
2) You need to make your mortgage broker services stand out from the crowd and increase your mortgage broker sales. One way to call positive attention to your business and attract new clients is by getting referrals. After each client you help, ask for a referral. You can easily do this through simple online surveys. An all-in-one mortgage broker marketing solution will enable you to easily create and distribute surveys. You won’t get a referral from every client, but you will get some, along with lots of useful feedback to help you improve your services.
3) Track your online leads in detail so you can connect with them personally. Even if a lead comes to your website and doesn’t leave their contact information, you can still gather lots of information about them. Lead tracking follows a lead, tracks where they come from, records which links they click and so on. This builds up a detailed personal profile for each lead. If the lead does leave their email or phone number, you can then reach out. Constantly gathering online data lets you learn which parts of your website get the most attention so you can optimize the site. Personal profiles also enable you to connect with leads based on their individual interests and online activity.