Best trading technology for FX: smartTrade Technologies

As sell-side market participants more readily accept the integration of machine learning and artificial intelligence (AI) into their processes, smartTrade Technologies unveils advanced services and modules that provide clients with powerful tools to maximise trading efficiency

Building on the significant demand in recent years by regional and superregional banks to upgrade their processes and workflows, smartTrade Technologies has developed a wide array of AI and machine learning tools that blend the best of new technology with human expertise to significantly enhance the efficiency of its clients.

In the past, measuring rejection rates, market impact or profit-and-loss reports improved the trading of market participants. Now, smartTrade’s Analytics and Copilot modules give clients greater control over how they manage, and even anticipate, their customers’ and liquidity providers’ actions, while providing deeper insight into how the market is behaving and where opportunities may lie.

These technologies are already deployed in the market and are proving themselves in real-world environments. Banks are identifying potential opportunities to improve relationships with clients and liquidity providers, discerning and mitigating risks – such as customers who may be tempted to leave – or simply segmenting end-users into specific groups for targeted sales campaigns.

“Sell-side clients want clear, actionable data delivered at a time it is most useful,” says John Stead, sales enablement and marketing director at smartTrade Technologies. “For example, smartTrade’s AI and machine learning tools enable banks to see clearly how clients are grouped in ways no human can ascertain. Once segmented, a bank can offer more value to its customers in terms of products, service and advice, which can even lead to automated reactions to certain actionable insights, such as changes in patterns of trading behaviour.”

smartTrade’s Analytics and Copilot modules have democratised access to this sophisticated technology so customers with minimal data science experience can leverage their tools and seamlessly incorporate them into trading workflows. Once integrated, modules can ping bank staff with actionable alerts on the platform, either via on-screen prompts or emails, through direct input into the client’s code hosted in smartTrade’s AlgoBox.

Unveiled in 2023, smartTrade’s smart Copilot module further enhances the capabilities of its existing offering by adding a powerful generative AI tool that analyses large data-sets and integrates an expansive array of analytics, credit and trading data into a streamlined, human-readable format.

This advanced module not only enhances decision-making capabilities by automating processes and empowering sales teams with superior client management tools, but it also uses algorithms to highlight unusual positions, reduce human errors and streamline trading processes.

The inclusion of natural language processing facilitates seamless global communication and straightforward trade requests, enabling FX market specialists and others to efficiently manage FX risk and orders.

Moreover, smart Copilot significantly reduces operational risk by simplifying the ticket entry process, thereby providing powerful insights while ensuring ease of use and accuracy in transactions. In summary, smart Copilot’s innovative features transform trading efficiency and client interaction by providing strategic insights on a just-in-time basis.

“Since many of our clients’ customers aren’t dedicated FX traders, they don’t necessarily understand the intricacies of a trade ticket and may prefer to explain their trading requests in a more natural way, akin to a voice conversation,” points out Stead. “It is therefore easier, and even safer, for them to write a trade request in smart Copilot than potentially making an error on the platform, or getting confused and giving up entirely, costing the bank business.”

A related feature of smart Copilot that has garnered particular interest is the ability to perform real-time translation. Customers can interact in their preferred language with a salesperson who speaks another language, and smart Copilot instantaneously translates the conversation back and forth. This again reduces the risk of misunderstandings and simplifies client support worldwide.

Stead emphasises that the opportunities with AI and machine learning tools are vast, with their potential limited only by the level of innovation clients are willing to pursue. Clients are already exploring the capabilities of advanced AI features, demonstrating a clear understanding of their value.

“The technology enabling clients to interact with analytics through natural language, powered by large language models, has now reached a good level of maturity, and the benefits of such technology are swift and transformative, offering significant possibilities,” Stead says. “This may present strategic considerations, particularly in deciding which AI model to use. For this reason, smartTrade has worked with several leading technology partners, including OpenAI, and is therefore able to adapt its Copilot implementation as required by client needs.”

As these technologies continue to evolve, and financial institutions gain confidence in their deployment, AI and machine learning tools are set to further enhance tasks such as market trend analysis, trading performance evaluation and operational efficiency improvements, all of which support more informed, data-driven decision-making. As a strategic technology partner, smartTrade is committed to being at the forefront of these innovations and driving forward the boundaries of future technology.

smartTrade Technologies was named Best trading technology for FX at the FX Markets e-FX Awards 2024.

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