Andreas Livadiotis: Cyprus has truly become the fintech capital of the area

Cyprus has truly become the fintech capital of the area, and XValley Technologies Ltd is right there at the forefront of this space, according to Founder & CEO Andreas Livadiotis.

“The island is now home to some of the brightest minds in fintech, all contributing to its dynamic growth and innovative spirit,” he says in an interview with CBN, where he introduces the company, talks about the brokerage industry’s latest trends and challenges, and what he thinks the future looks like for the sector. “Watch this space when it comes to the gamification of trading!”

What services and products does XValley offer? What is the company’s geographical reach?

Here at XValley, we offer a comprehensive and robust ecosystem that’s specifically designed for brokerages in the FX, Crypto, and multi-asset markets. Our ecosystem is an all-in-one brokerage solution in that it covers an array of critical brokerage functions, which are key to the operations of any broker. These include our trading platform offering, which comes as a WebTrader, a mobile app, and can also be downloaded for PC, Mac, and even Linux. Our trading platform has seamless integration with popular platforms like MT4 and MT5.

We then have the other “brokerage absolute needs” in our fully integrated CRM system, which is fully tailored to manage leads, client onboarding, sales, partners (such as IBs & affiliates), as well as offer unparalleled support, ensuring smooth operations from one interface.

The XValley ecosystem also includes a secure, customisable Client Area (also known as a Client or Trader’s Portal) where traders can manage their accounts, access trading history, and handle deposits and withdrawals.

Having been a fintech solution’s provider for a decade now, we know what brokers are looking for, and so, along with the fundamentals of a trading platform, CRM, and Client Area, we also offer advanced tools such as our Liquidity Bridge for real-time liquidity access, price aggregation, and order routing, as well as an extremely robust Risk Management suite that includes exposure tracking, margin call systems, and stopout mechanisms.

To support various brokerage models, we also offer additional “wants” such as a MAM/PAMM solution, Copy Trading / Social Trading, Portfolio Management, and Prop Trading modules, as well as a Cashier module that provides multiple payment gateways with automated processing and multi-currency support. To further address industry regulations, XValley also integrates compliance and KYC solutions to keep brokers compliant and efficient.

In answer to your sub-question about our geographical reach, what I can tell you is that XValley serves a truly global audience, with clients from Europe, Asia, Africa, the Middle East, and Latin America. Our ecosystem is designed to meet the unique needs of brokers in different regions, supporting multiple languages and currencies to facilitate seamless global operations.

Which of the company’s products is most in demand right now?

I’d have to say that one of the most in-demand products right now is our Prop Trading solution. Prop Trading has seen tremendous growth in popularity, particularly in the FX and multi-asset brokerage space.

As brokers look to diversify their offerings and attract more traders, prop trading has become a significant draw. It provides a unique opportunity for traders to access capital and trade on behalf of the brokerage while earning a share of the profits, without risking their own capital.

XValley's mature Prop Trading solution is a best-in-class feature. Now I know the phrase “best-in-class” is banded about a lot, but I’m confident any brokerage seeing the XValley Prop Trading solution in action will agree that it’s a best-in-class solution due to its highly customisable and scalable nature. No brokerage is the same, and so we’ve developed our Prop Trading solution so that it can be tailored to any broker’s specific requirements.

With its built-in risk management tools, advanced reporting, and seamless integration with our core ecosystem, it allows brokers to manage prop traders efficiently and profitably. One of the reasons this solution stands out is its ability to support multiple trading strategies, coupled with the comprehensive monitoring tools brokers need to ensure that risk is controlled, and performance is optimised.

Moreover, it’s fully integrated with our trading platform and CRM, which means brokers can manage their prop trading programs without needing third-party tools or solutions. This level of integration streamlines operations, enhances the user experience, and significantly reduces the administrative burden on the broker. As a result, brokers who have implemented our Prop Trading solution have seen higher trader engagement, improved performance, and a boost in their overall revenue streams. This is why it’s one of the hottest products in our ecosystem right now, with more and more brokers recognizing its potential to drive growth and profitability.

What is your view of the current condition of the brokerage industry? How has it been affected by the recent crises and conflicts?

The brokerage industry has shown remarkable resilience, particularly given recent global economic disruptions, political conflicts, and financial crises. Each crisis, whether economic, health-related, or geopolitical, impacts trading volumes and the behaviour of retail and institutional investors. For example, economic instability tends to drive traders to the FX market, while digital assets often surge during inflationary periods or when traditional assets become less attractive.

However, these crises have also underscored some of the industry’s vulnerabilities. Volatility has intensified, making risk management ever more crucial, particularly for brokerages catering to retail clients who may lack experience with extreme price swings.

At the same time, the demand for transparency and robust regulatory frameworks has heightened as clients seek secure, reliable trading platforms in uncertain times. Additionally, technology plays an increasingly important role, as brokers must not only maintain uptime and security but also offer sophisticated platforms that attract and retain clients amidst fierce competition.

The brokerage industry faces unique challenges that underscore the importance of building on a foundation of quality industry-built solutions. As discussed, the recent global economic crises and geopolitical conflicts have introduced volatility, regulatory changes, and evolving client expectations, all of which can destabilise brokers who aren’t equipped with resilient, adaptable technology. This environment places significant pressure on brokerages to operate efficiently, securely, and with the agility to adapt to rapid market shifts. This is also why we’re seeing around 70% of new brokers fail. That’s a big number, and it’s definitely partly down to the massive monthly costs brokers are having to pay out on their tech.

At XValley, we see quality technology as the bedrock of a brokerage’s long-term success, but we also believe a brokerage shouldn’t be held to ransom when paying for it.

A broker’s ability to navigate industry uncertainties hinges on having an ecosystem that’s mature, stable, and designed by industry experts. Built-in compliance, risk management, and operational scalability are no longer just “nice-to-haves”, they’re essentials. Our ecosystem integrates seamlessly with essential brokerage functions, providing the reliability and flexibility brokers need to respond to both market demands and regulatory scrutiny. And it does this while also looking after the broker’s bottom line.

Brokerages using industry-developed solutions like ours are better positioned to mitigate risks, reduce operational overheads, and scale without constantly overhauling their systems. Our platform allows brokers to focus on strategic growth and client engagement, knowing their core operations are supported by industry-proven technology. In a sector that’s more competitive than ever, building on this kind of foundation is what differentiates successful, adaptable brokerages from those that struggle to keep up.

What are the benefits for a broker to outsource the creation of platforms to a third party, such as XValley, rather than build them in-house?

Outsourcing platform creation to a specialist provider like XValley offers a range of benefits that brokers might find challenging to achieve with an in-house solution.

First and foremost, it saves time and resources, and I can’t emphasise just how important time and resources are to a start-up brokerage.

Developing a fully functional, compliant, and secure trading platform from scratch is an extensive, costly process that requires specialised expertise across technology, risk management, and compliance. By outsourcing, brokers gain immediate access to a mature, stable platform backed by a team that understands the unique requirements of the brokerage industry.

Another advantage is scalability, which is key. Brokers using XValley can grow their operations smoothly, as our ecosystem is built to handle a high volume of traders, assets, and transactions. This scalability can be challenging to achieve with an in-house system, as development and ongoing maintenance demand continual upgrades and investments.

In contrast, XValley offers a complete, regularly updated ecosystem that allows brokers to focus on their core business rather than on the complexities of software development.

Additionally, compliance and risk management are vital, especially with evolving regulations. At XValley, we ensure that our platforms remain compliant with major regulatory requirements, giving brokers peace of mind that they’re operating within industry standards. Our platform is also equipped with robust risk management tools and data security protocols, which many brokers would find costly and complex to build in-house.

Finally, XValley’s ecosystem offers flexibility and access to the latest trading technologies. Our solutions include features such as integrated CRM, liquidity bridging, and advanced trading tools like Prop Trading, MAM/PAMM, and social trading modules, tools that require extensive development time and expertise. By partnering with us, brokers can provide these services to their clients without the lengthy timelines and high development costs associated with in-house builds.

So, I’ll say that when it comes to brokerages outsourcing their operational, sales, and trading needs and wants to XValley, we get to provide these brokers with a comprehensive, ready-to-use, and future-proof solution that accelerates their market entry while keeping costs manageable and predictable.

Then there’s the customisation angle. As I’ve said, no broker is the same. At the moment, we’re working on a number of projects on behalf of our clients, most of which are related to customising our tools and features for them. Our aim is to ensure our clients are productive, and that means tailoring our software to their needs, which we’re more than happy to do.

In Cyprus we have around 253 CIFs, which is a significant market. Is that XValley’s main market?

XValley is proud to be a Cypriot company. I’m Cypriot, too, and I’m fully committed to promoting Cyprus and supporting its vibrant fintech ecosystem.

In fact, I can go as far as saying that Cyprus has truly become the fintech capital of the area, and XValley is right there at the forefront of this space.

The island is now home to some of the brightest minds in fintech, all contributing to its dynamic growth and innovative spirit. We’re privileged to work within such an environment and play our part in pushing Cyprus’ fintech capabilities forward.

The 250 plus Cyprus Investment Firms are a key part of this landscape. At XValley, we understand the unique needs of these firms and provide them with an integrated, powerful brokerage ecosystem that enables them to launch, adapt, and grow.

I’m also passionate about the word “grow”, but more importantly, I’d like to think that XValley is empowering CIFs to ultimately become the successful entities their founders envisioned. As a founder myself, I know how important that is! We’re proud to be part of the thriving fintech landscape in Cyprus, supporting brokerages as they grow and deliver outstanding trading experiences.

While Cyprus is our home, we also maintain a global focus, proudly serving brokerages across Europe, Asia, Africa, and beyond. We’re excited to help both local and international brokers succeed, providing them with the advanced tools they need to thrive in an increasingly competitive market.

AI has been described as a game changer for your industry. How are you adopting AI into your offerings and what kind of AI use cases can we expect from XValley in the future?

AI is definitely a transformative force for brokerages as it’s bringing advanced intelligence to several core functions within our ecosystem. We’re already looking at leveraging AI in areas like our Risk Management module, where it enhances accuracy and responsiveness, enabling real-time monitoring of market conditions and potential risks that may impact client portfolios. This integration makes managing exposure and liquidity both proactive and efficient for brokers, especially in fast-moving markets.

Another exciting area is the potential for AI to drive personalised client experiences, and so we’re going to be implementing AI into our Email Marketing and Support modules. By using machine learning, we can deliver tailored insights to traders based on their trading habits, helping brokers offer more value to their clients. Predictive analytics and intelligent automation are also shaping our onboarding and compliance modules, easing the traditionally time-consuming KYC process and creating smoother, more secure client onboarding.

In the future, we’re looking at expanding these AI capabilities to offer even more predictive insights and decision-making tools for brokers. These advancements will allow our users to make faster, data-driven decisions while keeping a close eye on operational risks, ensuring compliance, and elevating the overall user experience.

You have been at the helm of XValley for over ten years. A lot has changed in the tech as well as brokerage space in the meantime. What are the biggest changes you’ve witnessed and do you believe the impact has been positive?

I would say that over the past decade, the brokerage and fintech landscape has evolved dramatically, and it’s been an incredible journey to witness and be part of these shifts.

Perhaps the most transformative changes I’ve seen are around automation, the emergence of AI, and the drive for integrated, all-in-one brokerage ecosystems, which we’re still at the forefront.

When I started XValley, the technology supporting brokerages was much more fragmented, with solutions often requiring extensive manual input and multiple platforms that didn’t always integrate well. Now, with advancements in automation and AI, brokerages can rely on systems that streamline everything from onboarding, sales, and compliance to trading, marketing, and risk management.

Another major shift has been the heightened focus on client-centric technology. Brokers today have access to powerful analytics and machine learning tools that provide insights into client behaviour and risk management, which were far less accessible years ago. This shift toward data-driven decision-making allows brokerages to create more tailored, intuitive client experiences, which ultimately enhances trader engagement and trust.

I believe these changes have had a hugely positive impact on the brokerage space. They not only offer brokers the tools to operate efficiently and stay compliant but also help reduce operational costs and drive profitability. The all-in-one, adaptable ecosystems we see today empower brokers to focus on client growth rather than backend logistics.

At XValley, we’re incredibly proud to have played a role in pushing these innovations forward, helping brokers meet the demands of a fast-changing industry and empowering them to offer a more refined, reliable service.

What do you expect to see happening in the brokerage industry over the next ten years?

Over the next decade, I can see the brokerage industry evolving even further towards automation, personalisation, and increased accessibility.

AI and machine learning will likely become more deeply embedded in all aspects of brokerage operations, from real-time risk management to client segmentation and onboarding, allowing brokers to operate with even greater precision and efficiency.

I also expect to see continued demand for robust, integrated platforms like XValley that unify multiple functions into a single ecosystem, reducing the need for fragmented, standalone systems.

Another significant trend will likely be the push for transparency and security, especially as global regulations become more stringent. Clients are becoming increasingly concerned about data privacy and ethical trading practices, which will drive brokers to adopt technologies and practices that ensure compliance while fostering client trust. Solutions that offer built-in compliance management, like ours, will be essential for brokers to keep pace with regulatory changes while still focusing on growth.

Additionally, I think we’ll see an increase in multi-asset platforms and the adoption of new asset classes as markets evolve. Traders today want access to a variety of assets, from traditional currencies and commodities to newer options like digital assets, carbon credits, and other emerging financial instruments. This diversification, paired with the right risk management and analytics tools, will allow brokerages to reach a broader audience and adapt to shifts in market demand.

Finally, I can see a bigger influence on the gamification of trading. This is something that’s exploding in Asia, and we’re working with brokers there to leverage this. People’s patience is wearing thin, and there are many who want to jump on an app, trade in a 5 minute trading tournament during their lunch hour, and move onto the next thing.

Watch this space when it comes to the gamification of trading!

I believe the brokers that will thrive in the next decade are those that embrace technology not just as a tool but as a strategic advantage, using data-driven insights, operational flexibility, and a client-first approach to differentiate themselves in an increasingly competitive market. At XValley, we’re already preparing for this future by continuously advancing our ecosystem to ensure brokers remain agile, compliant, and ready to meet tomorrow’s demands.

What is next for XValley? Do you have any new products or expansion plans coming up?

We’re always looking ahead and thinking about how we can continue to evolve to meet the needs of our clients in this fast-paced industry. One of our primary focuses right now is enhancing the use of AI within our ecosystem. We’re already integrating AI-driven tools for things like personalised client experiences, advanced risk management, and predictive analytics (we’ll make an announcement on the release of these great tools soon), but we’re committed to expanding these capabilities even further. Our goal is to give brokers even more control, insight, and efficiency in managing their operations, without adding complexity.

In terms of products, we’re looking to roll out more advanced tools for Prop Trading, as we’re seeing significant demand in this space. Additionally, we’re in the process of developing more seamless integrations for emerging asset classes like digital assets, which we believe will be critical for brokers looking to stay competitive in the coming years.

Geographically, we’re continuing to expand our reach. While Cyprus remains our home and core market, we’re seeing increasing interest from brokerages in Asia, Africa, and the Middle East, and we have plans to further tap into these regions. We’re also building out a more robust partner network through XValley Partners, allowing us to scale through strategic resellers who can introduce our ecosystem to new markets.

On top of that, I’m excited to announce that XValley will be featured at the Cyprus Fintech Summit (CFS), the biggest fintech event of the year. CFS is a fantastic networking opportunity, plus you get to meet like-minded professionals, and share insights on the future of fintech. I’m looking forward to seeing every reader there and discussing how XValley can help drive your brokerage forward. The event is happening in Limassol on Friday, 6th December 2024 at the Crowne Plaza Hotel, and tickets might still be available at https://cyprusfintechsummit.com.

For me and my brilliant team at XValley, we’ve got a commitment to growth, not just in terms of market share, but in how we support brokers as they navigate the evolving financial landscape.

We’re investing in the future of brokerage technology so that our clients can stay ahead, and we’re excited about the innovations we’ll be introducing in the coming years.