Alexander Iskhakov has dedicated his career to developing financial technologies. Over the past seven years, he has risen through the ranks from a developer to the Chief Technology Officer (CTO) at Tools for Brokers, a company that creates cutting-edge technology solutions for brokers. He is responsible for the company’s technical culture and oversees the implementation of key technologies that are shaping this rapidly evolving sector. In this interview, he discusses global fintech trends, from blockchain and AI-driven analytics to the rise of embedded finance and RegTech. He also weighs in on the delicate balance between innovation and stability, the disruptive impact of DeFi platforms and zero-commission trading apps on brokerage models, and the unpredictable risks of AI-driven market forecasting.
What are the trends defining the financial technology landscape internationally today?
Perhaps my perspective is somewhat biased toward the challenges faced by brokers, but on a global scale, I see the following emerging and growing trends shaping the industry:
Blockchain and Digital Assets
Blockchain is revolutionizing the financial ecosystem by enhancing transparency, efficiency, and decentralization. Beyond cryptocurrencies, use cases such as asset tokenization, decentralized finance (DeFi), and central bank digital currencies (CBDCs) are gaining traction. DeFi platforms are increasingly intersecting with traditional financial systems, creating new opportunities in lending, borrowing, and trading.
AI and Machine Learning
These technologies are gaining momentum across all industries, and finance is no exception. AI and machine learning are driving advancements in fraud detection, credit scoring, and risk management. In the Forex space, AI-powered robo-advisors and predictive analytics are helping brokers and traders make more informed decisions.
RegTech and Compliance Automation
The rising complexity of global regulations is making RegTech (regulatory technology) indispensable. Solutions for compliance reporting, real-time monitoring, anti-money laundering (AML), and know-your-customer (KYC) processes are becoming essential for brokers and financial institutions.
Widespread Use of APIs
APIs enable the secure sharing of financial data between institutions, fostering the development of new services and platforms. Forex brokers are leveraging APIs to seamlessly integrate with CRM systems, liquidity bridges, and other essential trading tools.
Sustainability and ESG Initiatives
Environmental, Social, and Governance (ESG) factors are gaining prominence. Investors and customers are increasingly demanding greater transparency and ethical practices from financial institutions. In the Forex space, there is a growing interest in carbon-neutral trading and sustainable investment products.
Embedded Finance
Financial services are increasingly being integrated into non-financial platforms. From e-commerce to social media, companies are embedding payment solutions, lending, insurance, and wealth management features to create seamless customer experiences. “Buy Now, Pay Later” (BNPL) solutions are a prime example of embedded finance reshaping consumer lending.
What do you see as the most pressing challenges retail brokers face in adopting new technologies in today’s rapidly evolving financial technology landscape?
Retail brokers must balance innovation with stability, ensuring that new technologies enhance operations without disrupting their core business. This balance is crucial for staying competitive, and I see several key obstacles that stand in the way of seamless adoption:
Scalability and Performance Issues
As brokers grow, they must handle larger trade volumes, increased data processing, and global expansion without performance degradation. They also need to connect with liquidity providers and execute trades efficiently. Brokers should invest in high-performance liquidity aggregation and execution management systems that ensure minimal latency, such as Trade Processor.
Competition from Emerging FinTech Startups
Newer FinTech firms, including zero-commission trading apps and DeFi platforms, are disrupting traditional brokerage models. Brokers must constantly embrace innovation, ensuring that their offerings remain up-to-date with the market.
Market Fragmentation and Technology Overload
The rapid growth of FinTech solutions means brokers must evaluate a wide range of technologies, making it difficult to determine which are truly valuable. Adopting too many fragmented tools can be both costly and inefficient, while failing to adopt the right ones can lead to stagnation. Brokers should focus on strategic technology partnerships that offer an end-to-end ecosystem rather than piecing together multiple disconnected solutions.
Adaptation to Regulatory Compliance
Regulatory environments vary by jurisdiction, and keeping up with constant updates in KYC, AML, GDPR, DORA, and MiFID requirements can be costly and complex. Brokers should invest in robust RegTech solutions that offer real-time compliance monitoring and automated reporting to reduce regulatory risks.
How has the market of trading platforms been affected by these trends and challenges, and how has it changed in recent years?
The trading platform market has undergone significant transformation in recent years. Of course, MetaTrader remains dominant in the field, but the older and, in many ways, more limited MetaTrader 4 is losing ground to MetaTrader 5. This shift is accelerated by the growing demand for multi-asset platforms that support not just Forex or CFDs, but also equities, commodities, crypto, and ETFs.
Proprietary custom-built platforms are now more prevalent among large brokers than they were just a few years ago. Following the tightening of the KYC process on MetaTrader, cTrader is gaining popularity among startup brokers.
Finally, across all platforms, there has been a major shift from desktop to web and mobile. The industry is moving where traders want to see it—on their phones.
How do technology solutions address the increasing complexity of managing brokers’ risks in a modern, demanding trading environment?
Nowadays, brokers have a vast set of tools to manage risks. Let me highlight just a few to keep our interview concise:
Switching between books allows brokers to dynamically route trades between A-Book and B-Book based on real-time risk factors. During periods of high volatility (e.g., NFP, FOMC, geopolitical crises), some brokers shift all trades to A-Book to avoid exposure to unexpected market movements. A good bridge should offer an auto-switch feature that hedges risks automatically based on predefined triggers.
Dynamic leverage adjustments allow brokers to reduce exposure to high-risk traders and mitigate risk during news events and market shocks. TFB’s Dynamic Leverage Changer enables the application of different leverage levels based on the current position size and period. Unlike many similar solutions, the new leverage is not applied to the trader’s entire position, providing more flexibility in risk management.
Automation is becoming increasingly critical in the financial sector. How does automation enhance risk management and operational efficiency for clients, and are there any shortcomings in automation?
I think that every aspect of the brokerage business has undergone significant changes due to automation. Manual dealing, swap charges, and agent commissions are now things of the past. With the help of RegTech providers, tedious reporting can be completed with the click of a button. Risk management is handled by various automated solutions, allowing well-prepared brokers to shift their focus from routine daily operations to strategic decision-making.
However, a lack of human oversight can turn automation glitches into financial losses. That’s why it’s crucial to choose reliable technology providers and maintain a balance between automation and human monitoring of key processes.
Where do you see the greatest potential for AI to make a meaningful impact on trading operations in the financial markets?
I posed that question to ChatGPT, and its response was that “the greatest potential lies in enhancing decision-making, execution efficiency, and risk management.” I mostly agree, as AI-driven market forecasting and real-time monitoring are gradually becoming a reality. However, there is still room for skepticism—AI can make erratic mistakes, and in the high-stakes financial sector, neither institutions nor technology providers are eager to take responsibility for the unpredictable behavior of AI-driven systems.
