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Brokers around the globe struggle to match the intricacies of trading platform maintenance. As technology continues to advance and rules get tighter, having to conduct platform maintenance internally is proving expensive and time-consuming.
A survey in 2024 by Northern Trust found 40% of participants said rising expenses of running existing platforms boosted the chances of outsourcing.
New trading platforms call for massive investment in people and technology. The need to process data in real time, perform sophisticated analytics, and implement strong security mechanisms has increased operating expenses. Technology also needs frequent updates and support, adding more pressure on in-house IT organizations.
A recent study by Traders Magazine even spotlights how trading companies are revisiting their dependency on cloud infrastructure. Excessive costs and poor performance have encouraged some brokers to move towards exclusively managed physical infrastructures to ensure greater stability and control over their platforms.
On top of technical problems, brokers will also have to adhere to tougher regulations. Money authorities across the globe are bolstering their laws, further compounding trading platform management.
Recently, for instance, last year witnessed a major crackdown on prop trading companies. In 2024, the U.S. expanded its oversight Securities and Exchange Commission (SEC) broadened its regulation of proprietary trading companies, requiring that they register with the Financial Industry Regulatory Authority (FINRA).
While MetaQuotes, the maker of the most popular MetaTrader platform, began requiring tighter MT4 and MT5 broker licensing, it became tougher for small brokers to keep their US clients happy.
Against such restrictions, brokers are on the lookout for other trading options that are flexible yet accommodate regulations across the globe.
Among the more popular platforms entering the market is Spotware's cTrader, which is a multi-asset trading platform that has already been a top choice among more than 300 brokers. Some analysts are even estimating that cTrader would rule the market as much as 80% in the near future.
While cTrader's sophisticated trading capabilities and user-friendly interface make it a powerful replacement for MetaTrader, it also brings to the table significant operational and management challenges common to any platform. In-house operation of the infrastructure requires a specialized technical staff that can take months to recruit—stalling business expansion and potentially draining finances.
In addition, the intricacies of platform configurations, server support, and constant monitoring require specialized knowledge that most brokers struggle to develop in-house. This concern resonates with most small brokers in the market.
In an effort to address these challenges, most brokers are resorting to outsourcing their trading platform management.
Nowadays, most specialized service providers provide end-to-end packages including everything from the initial setup of the platform to maintenance and technical support.
A recent example is a cTrader Service by B2BROKER, a global provider of liquidity technology for financial markets, introduced alongside its current MT4 and MT5 support and maintenance services.
The new product from the company not only offers routine support but also an extensive audit of current cTrader configurations. The provider examines the client's configuration and provides actionable advice to optimize operations and make everything run smoothly.
"We were one of the pioneers to introduce a cTrader white-label solution, and we've just added a cTrader prop trading white-label service to our portfolio," comments Arthur Azizov, B2BROKER CEO and Founder. "Our established relationship with Spotware, the company behind cTrader, allows us to provide unrivaled know-how and service to our customers."
The financial industry has always prized in-house knowledge, but the operational benefits of outsourcing are difficult to resist.
Cost-effectiveness is the most obvious benefit. Fixed infrastructure expenses can be turned into scalable costs, enabling brokers to respond to market conditions without significant capital outlays.
Access to specialised knowledge is another major consideration. The technical intricacies of trading platform setups, security monitoring, and regulatory issues require a deep level of technical expertise. Outsourcing companies provide specialized teams knowledgeable in the newest platform releases so that brokers are always ahead of the curve on industry trends.
Scalability also comes into play. When market conditions change, brokers need to be flexible. Outsourced trading platform solutions offer the flexibility required to scale or condense operations without the hassle of recruiting and training additional staff.
Most notably, perhaps, outsourcing enables brokers to concentrate on their business. Rather than managing the minutiae of day-to-day platform upkeep, firms can dedicate resources to client onboarding, business development, and strategy—crucial areas that generate long-term growth.
Over 2024 and into the early part of 2025, financial institutions have become increasingly happy to outsource infrastructure management to third-party specialists.
The union of increased cost of operations, changing regulations, and platform-specific issues renders outsourced products such as B2BROKER's cTrader Service an attractive solution for businesses looking for operational efficiency and regulatory compliance.
