The trading market is way too dynamic, and lucrative opportunities pass in a jiffy. Moreover, the industry is constantly evolving, with new approaches such as algorithmic trading, multi-asset strategies, and high-frequency trading emerging to improve the trading experience. 

Thus, brokers and financial institutions prefer customizable trading software that is equipped with flexible features, advanced tools, and real-time capabilities. In contrast to generic trading platforms, customizable trading solutions have been found to improve the trading environment, especially trade execution. Let’s discuss this in detail in this article.

Importance Of Trade Execution

No matter the asset type or financial market one is trading in, trade execution is extremely important. Poor execution can just flip the whole idea of trading, which is profit generation. The quality of trade execution relies on multiple factors, such as.

• Trade is conducted promptly after the order submission.
• The platform’s ability to handle different order types.
• Execution of trade as per the intended price.
• Low latency in trading software for faster data transmission.
• Successful execution of trades even during periods of high market volatility

If the trading platform doesn’t execute the trade or fill an order to buy or sell as per the intention, it could lead to missed slippage, opportunities, or even unexpected losses.

Understanding Customizable Trading Software

Customizable trading software is a computer program employed for trading that can be modified as per the requirements of brokerage or institutional traders. Thus, rather than adjusting the operations as per the platform, the platform can be adjusted with the provided customizations to adapt as per the trading operations. 

Here are the main key features of customizable trading software:

An expertly engineered trading software like that developed by Shark Technologies consists of the following features

• From price charts to market news, custom trading software provides access to live market data.
• Custom trading software supports algorithmic trading, with which users can automate their trades by setting the desired trading conditions.
• It offers a variety of risk management tools, including stop-loss orders and margin trading controls.
• It has an intuitive interface fitted with different customization options for easy navigation to the desired set of trading tools.
• The custom trading platform integrates different payment gateways for better flexibility and ensures secure deposits and withdrawals.
• The platform complies with financial regulatory standards such as FINRA, SEC, MiFID II, and more. 
• The platform supports a variety of digital assets, including cryptocurrencies, commodities, forex, and more.
• It has analytics and data reporting capabilities to give details about market trends, historical performance, etc.
  

Role Of Customizable Trading Software In Improving Trade Execution

As it is quite evident what customizable trading software actually is, let’s understand how it improves trade execution:

Multi-Asset Support 

The platform can facilitate trading in a variety of markets by providing access to asset classes such as forex, cryptocurrency, and equities, among others. Not only that, but it also offers different order types based on each asset class for better trading execution. As a result, brokers can enable trading software users to spread risk across a variety of asset classes, ultimately improving trading performance.

Customise Trading Algorithms

Custom trading software can be integrated with different trading algorithms and smart order routing systems. It can help brokers to configure trade execution logic or support specific strategies, market conditions, or asset types. Thus, traders can set different algorithms for arbitrage, scalping, or even trend-following. With generic trading software, brokers cannot provide their platform users with the same level of support to match market conditions or trading strategies due to generic routing logic. 

Quick Decision-Making 

Complex trading software with a strict user interface can hinder platform users’ trading experience. Customizable software, on the other hand, offers a dashboard with numerous customization options and an intuitive user interface. Platform users can change and customize everything from watchlists and alerts to drag-and-drop order tickets, or else. Such a setting facilitates prompt decision-making without getting caught up in the intricacies of the platform. 

API Integrations

Custom trading platforms integrate desired external tools and systems such as data feeds, third-party analytics, CRM systems, trading bots, liquidity sources, and more. Thus, the platform users don’t have to use multiple platforms and switch between them, which delays the trade execution. 

Low-Latency System

These specially designed custom trading platforms usually use high-performance programming languages. Also, modern database systems are employed, and servers are located close to exchanges to achieve ultra-low latency.

Compliance & Risk Management

Brokers can set various instruments, order size limits, and client margin thresholds to prevent faulty executions and limit traders’ exposure. Furthermore, they can manage platform compliance with regional regulations such as MiFID II, FINRA, and so on. 

Advanced Analytics and Execution Reports

In order to improve the trade execution, the platform is fitted with different built-in execution analytics and also provides execution quality reports. It allows users to track slippage, order fill times, latency, and liquidity as well. Thus, it supports the continuous optimization and improvement of trading infrastructure as well as strategies. 

Easy Scalability 

Generic platforms offer a restricted feature set and a fixed infrastructure. It makes it impossible for brokerages to provide better trading execution to their clients as the business grows. Customizable trading platforms, on the other hand, can support multiple users and asset classes. Even at times of higher trade volumes, the platform works efficiently. Also, due to their flexible architecture, the platform can be easily upgraded with new features to adapt to the market and serve more customers in the future. 

Wrapping Up

Brokerages that are still sticking to the old generic trading platforms won’t be able to sustain their position in the market for long. Customizable trading software, due to its unique customizations, allows brokerages to serve their customers with better trading execution and control risks more effectively. If you are a broker and looking to build customizable trading software for your brokerage, we can assist you. Shark Technologies’ experts specialize in developing fully customizable solutions with robust infrastructure designed for modern trading firms. Get in touch to know more!