How to effectively choose a technology vendor?

How to effectively choose a technology vendor?

There are two things which are paramount when selecting the right technology vendor for your trading business: partnership and transparency.

Carefully analyze what the technology vendor brings in terms of experience and solutions. Get in touch with existing clients to make sure they have a solid track record in the market and are not over promising. A reliable vendor should carefully determine your requirements and truly understand your business. They should give you useful advice and guide you by sharing best practices they have seen amongst other clients or in the industry.

Check if they have similar clients who will drive the product in the right/the same direction. To ensure that they will keep delivering future proof solutions, they should have a clear road map.

Transparency of costs is crucial. You first need to evaluate the true cost of the solution. The explicit cost such as the flat technological fee is easy to calculate, it’s the hidden costs which will require more attention. Make sure Liquidity Providers (LPs) are not being charged otherwise this will impact your profitability and relationship. In addition, don’t forget that there is a difference between price and cost. A vendor that seems to charge a very cheap price but which takes a long time to go live, using a technology that isn’t fit for purpose or lacks functionality has a real negative cost to your business.