Broker Brunch: join Spotware for its exclusive Limassol brunch this April
The C-Suite returns.
This is a once a month interview where we speak to a senior executive in the industry.
In this month’s edition, we speak to Nick Cooke, the Founder and CEO of Taurex.
We talk about starting the company in the middle of the pandemic, growing to 200+ employees, launching an app, and what the company plans on bringing to the prop trading space.
You founded Taurex almost eight years ago now. We’ve had big regulatory changes in that time, a pandemic, and a decreasing number of firms targeting Europe. Has it been hard to navigate those changes and what has been the most rewarding part for you as a company founder
Although Taurex was first formed in 2017, our official opening day was 1st July 2020, when we opened our first office in London after FCA approval in 2019. We opened our first office bang in the middle of a global pandemic which was far from ideal! We faced the task of building a new team, technology, and liquidity infrastructure, opening new offices, and other necessities required for launch all during a global lockdown which as you can imagine was challenging.
Across various regulatory changes and other firms decreasing focus on Europe, a real opportunity was created for us. We are not by nature an EU focused firm. Our focus is primarily Asia, MENA and LATAM and we are making some solid steps within parts of Africa. What we found is that although many firms have ambitions for the same geographies as we do, they are reluctant to put boots on the ground and to take the time to understand local wants and needs. We are the opposite. I strongly believe that to provide clients with a product and service that they want, you must go there, physically, to meet potential clients and partners.
Get a Match-Trader server today
Equally as important is to meet new hires face to face to understand what makes the market tick and what clients and staff need to be successful and grow with us. I went so far as to relocate my wife and young family to Asia for 7 months right in the middle of the pandemic!
I’ve now lived in three countries since launching Taurex and, while constructing local teams, I had a great opportunity to really listen to clients, staff and partners and understand what is needed locally, not from thousands of miles away. I still travel to all our offices to sit and listen to clients, partners and staff. I have to say, this helps greatly as I shape the strategic vision for the entire company.
Give your clients access to US equities with 26 Degrees
On the regulatory front, regulatory change is something that has always been a constant during my 18 years in the industry. Regulations that protect clients is something that we very much welcome. I’d like to think that any broker who is here for the long term would think the same to be honest.
Regulatory changes across the globe have led to consolidation and thankfully a reduction in the number of firms who simply wave a regulatory flag at the bottom of their website yet go on to onboard their clients to poorly or non-regulated entities, often without clients even being aware that they have little or no protection as a result. We are very focused on strong regulation and compliance. Our compliance teams are global – we have in-house compliance expertise in London, Dubai, Seychelles and Africa as well as external advisors in all the above. Client protection and comfort is paramount for us, so regulation is not a hurdle, it’s absolutely a benefit in my opinion. We have recently launched a $1M client insurance policy to back up this belief.
Taking a global approach, admittedly does take time. But we are and will be stronger as a result. To answer the last part of your question, I think that is the most rewarding part of being a founder for me – watching the company grow, the team grow and the Taurex brand go from strength to strength. From the day that we opened the door of our first office in London in 2020, we’ve grown to over 200 people, boots on the ground in 12 countries and four regulatory licenses in the UK, UAE, Africa and Seychelles. Quite the journey. Watch this space, a fifth regulatory license is on the way in 2025.
Launch copy trading on cTrader and MetaTrader with Brokeree
You launched another brokerage previously. Are there any things that you think are key to making a brand success or which you didn’t realise would be a problem before launching?
Establishing and operating a brokerage prior to Taurex provided invaluable experience and insights. My previous brokerage was more niche with a smaller team but lacked the scalability and brand exposure necessary for global expansion.
After selling my prior firm, the experience fuelled a desire to launch Taurex with the goal of becoming a tier-one broker on a global scale, supported by significantly larger financial backing.
Taurex, serving tens of thousands of clients globally, is quite different from my previous venture. Our primary focus has been on retail clients, but we have also experienced growing success offering institutional products through the Zenfinex brand, soon to be rebranded as Taurex Prime.
The Taurex brand’s success relies on consistent daily effort to shape the overall brand experience into a brand identity that resonates with and appeals to end users. Taurex’s mission is to build financial confidence for traders and investors worldwide and this drives our narrative and growth story daily. The main reason for opening a new broker was to create an experience that is different to other brokers on the market. As a cornerstone, we do that through building brand trust with users, the next phase is evolving our technology stack to offer a user experience not yet seen in the industry. We still have work to do, but we know where we are going.
Expanding operations on a global scale presents numerous challenges, such as localizing payment systems and onboarding processes. We prioritize our core competencies and reduce focus on areas where we encounter less success, consistently analyzing data to enhance our strategy. Global brand expansion requires substantial time, effort, and investment, and we are dedicated to ongoing improvement to meet the specific needs of clients by localising our offering across our key markets.
Taurex is one of only a small number of firms to have launched its own app. Why did you do that and has it been successful?
We began developing our mobile app in late 2021 after starting our tech arm in Bulgaria. The app is now available on iOS and Android worldwide. Initially focused on trading UI/UX, we have since been focusing on integrated onboarding and payments for multiple regions for a smoother user experience.
The objective of the Taurex app is to provide unique features exclusively to our users. Despite being a medium to long-term project, we are confident that it is progressing in the right direction. Everything we build into the app will focus on the end user, from integrating additional asset classes to unique AI and educational tools that are geared towards positively affecting trader performance. The app roadmap is both exciting and motivating for the entire company.
Ultimately, the app will reduce client acquisition costs and improve user retention through its simplicity and distinctive features. We are confident that companies who manage their technology independently, without significant dependence on third parties, will have a higher likelihood of long-term success. This is the key reason we began developing a mobile application early in our growth cycle.
You recently launched Atmos, your prop trading brand. Why did you decide to do that?
The proprietary trading and funded trader sector has grown significantly over the past five years and is expected to continue. The success of a funded trader program is dependent on presenting a sensible, balanced proposition that appeals to traders while managing risk effectively. Many funded trader programs have struggled in recent years due to inadequate systems and infrastructure to meet the operational demands of these programs. Our offering is designed to generate interest while maintaining a reasonable approach, avoiding unsustainable propositions.
We are investing in this area to develop the next wave of traders. A funded trader program can aid traders to improve, become more disciplined, provide real trading experience and succeed under parameters that are key areas for traders to learn whilst limiting risk. This fits perfectly with our brand vision — guiding new traders through our ecosystem, supporting their growth, and ultimately transitioning them to a brokerage account as their confidence and expertise evolve.
Atmos, operating as a broker-backed funded trader program, offers an advantage with its extensive infrastructure designed for global reach and superior multilingual client support under a group brand that comprehends a regulated framework. There are evident synergies between Atmos and Taurex, creating cross-product opportunities that favour traders.
Our offering promotes advancement within our ecosystem, progressing from an Atmos account to a Taurex account, and further to become a trade copier provider. This approach offers opportunities for additional income and benefits to end users.
I appreciate it has not been long but do you see any noticeable behavioural differences between prop traders and those coming to trade with your brokerage arm? Has the prop product appealed to clients trading with your brokerage arm?
Atmos is designed to appeal to new and existing clients. The product offering certainly attracts users with less capital to invest in a brokerage account due to the potential access to greater levels of capital. Smaller accounts are often how newer traders enter the investment world, gaining experience and education along the way.
A funded trader program is designed to allow traders to learn in a controlled environment with parameters that can improve their trading over time. After gaining initial experience, traders may feel more confident to advance their investment activities. This approach aligns with our brand’s principles. In addition to the potential for traders to earn extra income, Taurex partners can gain by offering Atmos to their users, thereby enhancing revenue streams for everyone involved.
You have been in the broker space for almost two decades personally and have a very experienced team working alongside you. What do you think you can bring to the prop space?
Over the past few years, we’ve not only observed the evolution of the funded trader space from the sidelines but have also been actively involved in the industry on the backend. We have provided services to both small and large prop firms and supplied liquidity to support their infrastructure. Through this experience, we’ve already gained some market insights, and it has become clear to us that the prop industry operates differently in many respects compared to the traditional brokerage space.
With that understanding, I believe it’s crucial to have a top-tier team of industry professionals who understand the nuances of building a funded trader program like Atmos and turning it into a success. I’m very fortunate to have a team of experts who dedicate their time to developing and supporting this project while leveraging our existing infrastructure to ensure we can meet the demands of the offering.
Additionally, we’ve brought on staff members with direct experience in the funded trader sector to help strengthen our initiative. I believe they recognize the advantages of working within an organization that not only has a solid global infrastructure but also understands risk management and the regulatory changes that may impact the space in the coming years.
With this experience in mind, we are confident that Atmos has the longevity to thrive, offering real value to both clients and partners. Our goal is to develop the next generation of traders, giving them the confidence and resources to take on the financial markets successfully.
Taurex recently got Cat 5 approval for the UAE. Have you seen any success in marketing locally and how do you stand out in that market given that it seems insanely crowded?
You are correct in stating that the UAE is a highly competitive market. It has undoubtedly established itself as a new financial hub within our industry, with new brokers emerging almost every week. One of the key advantages of the UAE is the proximity to principal decision-makers, which facilitates global business through face-to-face interactions beyond merely end users based in the UAE.
As a global broker, I believe we are well-positioned to capitalize on this as we cover key languages prominent in Dubai – English, Arabic, Urdu, Hindi and others. Additionally, our offering is well catered to the region with competitive FX and gold spreads and liquidity, Arabic education and content, and local payment solutions.
The UAE is likely to continue developing and Dubai has the potential to become a leading financial centre in the industry. With its diverse culture base, Dubai serves as a strategic base to engage with a wide variety of people. In addition, the numerous UAE regulators are overseeing the industry excellently to ensure a fair and transparent environment for investors.
Obtaining the Cat 5 SCA license has been essential for our growth in the region. The SCA regulation significantly enhances the credibility of our brand. Additionally, through our FSA license we’ve introduced client insurance up to $1M to give traders extra peace of mind. We have numerous promising developments in the region, and despite the competitive environment in the UAE, it remains an extremely dynamic location for conducting business and supporting global expansion.
There is something like a paradox in our industry. It has never been bigger – the forex expo last year, for example, was the biggest show I’ve ever been to. And yet a lot of people seem pessimistic and think that there is going to be process of consolidation, with a smaller number of players. Do you have a view on this? What do you see happening in the industry over the next 3 – 5 years?
The Dubai Forex Expo last year was indeed impressive, with what felt like around a thousand brokers attending! It’s evident, there are still huge growth opportunities in the industry, however the barriers to entry have become progressively more difficult compared to even 5 to 10 years ago, making it more challenging for brokers to develop their brands into top-tier brokerage houses.
The required investment and operational costs are significantly higher, regulatory requirements become more stringent each year, and achieving operational scale presents increased challenges. Although the number of investors and traders is expected to grow annually, competition for acquiring these users also intensifies. Additionally, marketing platforms and channels are becoming increasingly challenging to navigate.
One thing is certain, the industry is still growing every year. Mobile phone usage is widespread with many millions of people who want to invest in global markets and market accessibility is at an all-time high and continues to rise especially in emerging markets.
Additionally, as markets evolve, traders become increasingly sophisticated, highlighting the critical importance of maintaining a robust risk management framework.
With the anticipated advancements in artificial intelligence, the level of sophistication is expected to rise, requiring brokers to enhance their systems and processes for effective risk management. Those who fail to adapt to these changes are unlikely to succeed which could lead to further consolidation.
In the next 3-5 years, a consolidation of companies is likely due to the industry’s high operating costs and barriers to entry. Top-tier brokers have the potential to expand even further, across a vast global target audience and thousands of tradable assets. The potential is still huge.
