Interview with Mario Singh of mariosingh.com Asia’s Favourite Forex Blog!

     –  Partnership with global financial giants (we work with AIG to provide Trustee insurance and ANZ as our corporate banker)

In the fund management arm (Pinnacle), we offer two products called Alpha-1 and Alpha-2. Many of our clients are on Alpha-2 because it provides a capital guarantee and a fixed income payout. Clients love this for the peace of mind and consistency in receiving regular coupons.

4) You offer a technological solution that removes the complexities and costs of connecting the foreign exchange market. How do you see your product in the overall context of the FX / trading technology providers?

Technology is always evolving. What may seem as cutting-edge today may become obsolete tomorrow. Hence, we always strive to push the boundaries of innovation. Technology plays a big part across our group of companies. In Fullerton Markets for example, we invest heavily on infrastructure and servers which allow us to connect directly to data centres in London, the world’s largest financial centre. This direct connectivity allows us to drop execution speeds from “acceptable” industry levels of about 400 milliseconds to 200 milliseconds.

5) What do you see as being the most important considerations for the industry going forward?

There needs to be more collaboration instead of competition for us all to move and advance forward.

6) With the ongoing Fintech revolution what are your thought on the FX technology platforms ecosystem at the time present?

With the Fintech explosion, many firms are frantically trying to come up with their own proprietary platform to try and differentiate from the rest. While commendable, this should not be the only focus. Having a proprietary platform does not guarantee client retention nor the tag of being a world shaker. Other factors like management competence, product innovation, client experience, infrastructure and marketing are equally important.

7) What is your perspective on the emergence of new digital currencies in the context of FX Trading?

It’s what the market wants, so I’m sure it will be around for some time. Warren Buffett hates it, Richard Branson loves it.

8)  Algorithm trading represents around 75% of trading activity at the moment. How do you see the future for algorithm trading, in terms of technology and regulation?

I think they are here to stay. Algo trading exploded with Renaissance Technologies leading the way. Regulators will only step in if they find violations in compliance and financial irregularities.

9)  What is your take on social and mobile trading technologies?

Both have immense potential and are fairly intertwined. Most people today “surf” on their mobile. With the explosion of social media platforms like Facebook and Wechat, many companies are jumping on-board the “social/mobile bandwagon” to seize a captive audience. I’m guilty of that as well, when we rolled out our trading app called ProfitPips.

10) In general, what are the biggest regulatory challenges in Forex and algorithm trading, particularly in terms of the regional differences?

That’s a tough one. Cysec used to be “easy” on their regulatory approvals but they have since tightened up. Clients generally look for brokers who are regulated by FCA in UK, ASIC in Australia and FMA in New Zealand. The bridge between companies and regulators lie ironically, in the client. If the product offering is seen to help the client, regulation won’t be a problem. If products are deemed as risky or a “potential scam” to fleece the client, regulators will surely step in.

11) What directions will the Forex industry take in the future in your opinion?

Regulators are watching the industry closely because more and more people are jumping on it everyday. Type “Lamborghini” on Google and it returns about 60 million searches. Type “Forex” and you get a whopping 94 million searches.

12) Corporate trading and real trade best execution transactional costs changes? Fixing product, where is it going?

Offerings will be more competitive and costs can only go down as competitors try to gain a significant edge over one another. Corporates have slightly different needs compared to retail individuals. Corporates need the backing of regulators and counter-party risk mitigations. Retail individuals don’t necessarily need/want these things.

13) In your opinion how will the new generation – one that has grown up with open data, no privacy, social media, and online gaming – react to the FX market?

Interestingly enough, I think they will embrace it with open arms. This can be a double-edged sword though. The new generation thrives on open data, social media and online gaming. However, this is where education needs to come in. It isn’t very smart to “bare all” on the internet and FX market.

14) Where do you see the greatest opportunities geographically?
The industry is fairly mature in USA and Europe. The main areas of growth now include Asia and Latin America.

15) What is your biggest current challenge?

I’d say its education. Forex today is so different compared to what it was 10 to 20 years ago. Many people still think its a scam. In our fast-paced world, almost everyone is involved in Forex. From regulators, to central banks to commercial banks and right down to the individual traders. It’s a legitimate asset class. The sooner more people embrace it, the better it will be for the industry as a whole.

16) Future opportunities?

The Forex market is the largest financial market in the world. From the last official BIS figures in 2013, it stands at USD5.3 trillion. Once figures are out later this year, the number is bound to be higher. I see immense opportunities in both the retail and corporate segments in the years to come.