Forex Magnates reached out to Artem Kushneryk, CTO at NAX Trader, for an exclusive perspective on the platform’s unique multi-asset modules, as well as the impetus and innovation behind its versatile design. Mr. Kushneryk’s interview can be read in full below.
1.) What are the core principles behind NAX Trader and how has this helped form the direction of your company?
We live during an interesting time when technologies progress becomes faster each year and development companies must follow such movement to stay in business. We try to fit these requirements, developing and providing new modules at extremely fast rates and improving ready ones as well. In this way, development of our Binary Options trading module took about only two months and now it has features that no one another platform can provide to traders.
2.) What is the secret behind NAX Trader’s success in adapting to such a broad suite of asset classes (binary options, Forex, Cryptocurrencies )?
When we started to develop NAX Trader, we didn't focus on any specific trading instrument or asset type. Our goal was to create an abstract processing system that can be extended to any trading type.
Nowadays NAX Trader is a form of financial framework that consists of different abstract entities (such as “order”, “trader”, “quote”, etc.). Each of those entities can be extended with its own attributes and rules to fit for one or another trading type. A couple of such extended abstract entities will give us a new module with specific trading instruments, rules and calculations behind it.
3.) Can you elaborate in how NAX Trader Modules or the development process differs between each trading instrument?
Each trading instrument is a little different world with its own principles and rules. For our Forex module, we worked primarily with integration of it to Liquidity providers and creating of our own liquidity aggregator that can combine different providers into one data stream and provides best prices to traders. If we take a look on Binary Options module – we will see totally different basics that are important for broker, such as deep risk management, or maximal flexibility of trading options for traders. And for cryptocurrencies we had a priority of creating a quality and reliable ECN/STP-system inside a broker to allow traders to trade with each other and pass orders that need additional liquidity to external liquidity sources and cryptocurrencies exchanges.
4.) Which channel do you see being the largest area of growth moving forward: brokers, liquidity providers, banks or exchanges?
Our mission is to bring innovations and new quality of services to financial markets. However, we understand that financial institutes such as banks or exchanges are conservative and do not admit any revolutionary changes in a fast and easy way. Otherwise, many brokers are ready to launch innovative services because of high competition between them and we are ready to provide such products to them.
5.) How is the demand from FX brokers compared with that of Cryptocurrencies or Binary Options?
As we can see, many existing Forex brokers are going to run Binary Options trading as additional service for their clients. Some new brokers also decided to start their business from Binary Options because it has less difficult business model comparing to Forex and market is a little less competitive.
As for cryptocurrencies, it is a totally new field in financial markets and it's too early to talk about any trends in it.
6.) Oftentimes, technology providers have the potential to exhibit acute security vulnerabilities that can hurt client’s business, what sorts of improvements does NAX have to account for this?
Security and stability of the platform is one of our primary goals. Our service architecture has been built in a way where we control all communication points between customer and platform and apply all needed filtrations and security checks for them. Some most vital parts of our platform can't be accessed from outside and located in ethernet being accessed only by platform itself.
Another part of high security level keeping is a regular monitoring and updating of server software. There is no ideally secured soft in the world (recent Heartbleed vulnerability disclosure is an example) but when critical vulnerability is disclosed, engineers need to install a patch from software vendor as soon as possible.
7.) Can you compare the NAX Trading Module to other traditional means and how does NAX maintain a competitive edge against other providers?
NAX Trader's main advantages are extreme modularity and flexibility. When I talk about modularity, I mean the fact that you can combine any type of modules with each other and get very interesting results. For example, what do you think about PAMM service for Binary Options? Or social trading for cryptocurrencies? Or maybe you will be interested in binary trading on cryptocurrencies?
When I talk about flexibility, I mean the fact that all our trading modules provide to traders more trading options that any another trading platform. For example, at our platform we do not have any pre-set currency pair. Trader can make its own one by determining of domestic and foreign currencies. In such a way for example, he can use for trade USD/EUR, or more exotic HUF/JPY.
We can also take a look on our Binary Options module. It does not provide traders some fixed expiration times and price levels with some fixed payout rate. Each trader can choose its own options type, expiration time and price levels and will get a payout rate that will be calculated by platform “on fly”.
8. What is the impetus behind this modularity and has there been a swell of client demand?
High competition between brokers forces them to run innovative and interesting services for clients. We can see how social trading changed vision on classical Forex trading and money management in it. Development speed and its quality in our company allows us to run many interesting and innovative services, so why not?
