SpotOption was established in 2010 and is a leading provider of trading software to brokers in the online financial trading industry. Online brokers license its web-based platform which can be accessed anywhere with an internet connection. The company is headquartered in Israel, has offices in Hong Kong and London, and has expanded globally with clients in North America, Europe, Asia, Middle East and Australia. SpotOption’s platform is used by more than 300 brands that together hold 65% of the market share.
While SpotOption had an established presence in China, the company was aware that its platform was suffering from latency issues in China due to the country’s poor network infrastructure and the Great Firewall of China. Despite engaging a content delivery network (CDN) provider to speed up the service in all markets, performance issues remained in China.
As exchange rates change so quickly, online traders expect the platform to be fast, reliable and responsive or they will abandon the service. SpotOption’s service was especially at risk because traders use binary option platforms in expiry times as short as 15 seconds. It was essential that prices were displayed in real-time to avoid the risk of arbitrage, where traders take advantage of price differences between platforms, which can cause losses that are damaging to the business. SpotOption needed a CDN provider that could accelerate content both inside and outside of China.
“We knew we had to minimise the latency of our service in China as this is a growing market for us. With online trading, every millisecond counts – we need the fastest response time to provide the best and most reliable service possible. We decided we needed a content delivery network provider with the technical expertise and local knowledge to ensure we could succeed in China,” said Amir Vaknin, CTO and VP R&D at SpotOption.
After researching a number of CDN providers, SpotOption selected CDNetworks as one of few CDNs with the expertise to support its business in China. CDNetworks delivered its Dynamic Network Acceleration and China Acceleration services to accelerate the platform’s pricing engine into mainland China. This was vital to ensure that traders in China could experience the best performance possible when using the platform.
The Dynamic Network Acceleration technology speeds up non-browser-based data by eliminating the need for excessive round trips through the network. The data can be transferred at the transport layer from SpotOption’s server in Hong Kong to local points of presence (PoPs) in China. This technology has been used to accelerate the web socket delivery and correct the TCP performance issues SpotOption had experienced in China.
“CDNetworks was the only CDN that could offer us a solution to effectively eradicate the performance issues we experienced in China. We were really impressed with how the team could pinpoint the exact problem and deliver the solution seamlessly,” explained Vaknin.
Since partnering with CDNetworks, SpotOption has seen a huge improvement in the performance of its platform in China. By minimising the latency, it has experienced a significant reduction in both customer service issues and customer churn. In turn, traders can trust that prices are displayed in real-time, while SpotOption can be confident in the knowledge that it has reduced the risk of arbitrage.
The load time of SpotOption’s trading platform in China is now five times faster than it was prior to working with CDNetworks. This result has dramatically enhanced the user experience for traders in mainland China.
SpotOption also benefitted from the premium customer support service that CDNetworks offers its customers. Having access to extensive market experience and local knowledge from CDNetworks ensured that SpotOption could successfully overcome any issue in China.
“We’re extremely happy with the results – our platform is now five times faster which is remarkable. Fast and reliable response times are an absolute must in our business and now we can reassure traders in China that our platform can be trusted. Equally impressive was the excellent customer service and ongoing support we received from the team – CDNetworks made it so easy to tackle our latency issues head on.”