Al Bayan Magazine spoke with Michael Karczewski, the co-founder of Match-Prime, a multi-asset liquidity provider. Michael Karczewski had some insights to share on the forex industry and its future.
Hello Michał, can you give us an idea about your company?
After many years of working in the Forex industry, we have come to a conclusion, together with my partners, that we already have sufficient know-how and appropriate technological background to expand the business by providing liquidity to large licensed brokers. We have applied for the CySEC licence and started operating at the beginning of 2020. And after less than 2 years, we have brokers like Skilling or Orbex among our clients. However, this is not a surprise to me; all of the people behind Match-Prime have extensive experience working at the biggest brokers in Europe and the MENA region. We have dealt with the LPs’ sales reps pressuring us to increase the number of transactions, and we know how frustrating it is.
That’s why we wanted to introduce new standards. We have this unique advantage of working in close partnership with the technology provider who developed Match-Trader PRO, our institutional platform. It gives us and thus our clients much flexibility in customising the conditions and expanding the offer practically on the client’s demand.
What is the purpose behind your participation in IFX Expo?
Well, Cyprus is the capital of the forex industry. We have our offices here, the liquidity team in Nicosia and Limassol for the technology partner. It is our go-to event every year. Among similar expos in Dubai, Bangkok or London, we also exhibit in. Cyprus always has the highest attendance. I do not know if any company can be taken seriously in the industry if it does not appear at this expo. You simply must attend it.
In your opinion, what are the qualities that make a good trader?
I’d say it’s the consistency in applying rules that they’ve built their strategies on. After all, the most crucial thing in trading is how well you manage stress and not make any hasty decisions.
What was the impact of the Russian-Ukrainian war on the forex industry?
Business-wise it is similar to the Covid pandemic. Volatility is very convenient for brokers because most of them internalise the flow. Whenever volatility appears in the market, brokers’ volumes and revenues increase nearly automatically. We’ve already seen this during the global pandemic. Most of the brokers were skyrocketing as everyone instantly became interested in trading. People believe that it is easier to predict market changes in times of crisis. There is a logic behind that, as some indices always fall, and that attracts new traders.
How do you evaluate the industry post-pandemic?
It has grown a lot, but I don’t think it will stay that way. Many new companies appeared because of the rapidly rising volumes during the pandemic. And it’s not only new brokers but also providers. Many entrepreneurs saw a possibility and decided to take a chance, but we must wait and see who will survive. It won’t be that easy to stay profitable after the volatility drops if you don’t provide high quality in such a saturated market.
Do you have any expansion plans?
Currently, we are focusing on building the Match-Prime liquidity offer to onboard more clients and gain a much more significant market share with this product. Our future plans are related to crypto processing. There is new legislation coming, and we see that the crypto industry is becoming more and more regulated. We are taking a closer look at the crypto-asset service provider requirements as this is something we want to be involved in as well.