We Built A Liquidity Network.

For Forex and CFD Brokerages.

But We Didn’t Stop there.

Surveillance

We believe that Forex and CFD brokerages have a large number of critical operational responsibilities that are best outsourced to reliable strategic partners rather than tackling them internally. The benefits are clear: the brokerages can avoid the opportunity cost of building systems and invest the enormous time savings from outsourcing time-consuming administrative processes and focus on their strengths : growing the business.

In theory, this makes sense – but only if you pick the right service providers and can be confident that they will deliver to at least a level that you would expect if you invested the time to do it yourself. So…how do you do that? If you have ever found yourself unable to differentiate between service providers beyond the obvious difference in pricing, you are not alone – this is common and completely understandable. It is unreasonable to expect that you will be able to identify who the best service provider is in any area where you don’t have substantial personal experience. But can you really afford to risk the actual expense of what it will cost your business if you make the wrong decision and trust the wrong provider? Is trial-and-error or word-of-mouth referrals the best way to make these decisions?

Our Liquidity Network was designed to ensure that no Forex and CFD broker should ever pay the hidden costs of building a business around service providers that are unreliable. Only the service providers who have a strong track record of measurable performance are admitted to the Network and each provider has a Service Level Agreement to all members of the Network that rely on their service – which is agreed in advance and continuously monitored and reviewed both with the service provider and the member of the Network that receives the service.

The Network earns the trust of all of our members by ensuring that:

  • Expectations for performance are set in advance
  • These expectations are shared with you and the Network member providing the service.
  • There is accountability against those expectations.

If a pattern of unreliable service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short.

Best of all? The switch is painless (typically done within 24 hours).

Execution

We believe that Forex and CFD brokerages have a large number of critical operational responsibilities that are best outsourced to reliable strategic partners rather than tackling them internally. The benefits are clear: the brokerages can avoid the opportunity cost of building systems and invest the enormous time savings from outsourcing time-consuming administrative processes and focus on their strengths : growing the business.

In theory, this makes sense – but only if you pick the right service providers and can be confident that they will deliver to at least a level that you would expect if you invested the time to do it yourself. So…how do you do that? If you have ever found yourself unable to differentiate between service providers beyond the obvious difference in pricing, you are not alone – this is common and completely understandable. It is unreasonable to expect that you will be able to identify who the best service provider is in any area where you don’t have substantial personal experience. But can you really afford to risk the actual expense of what it will cost your business if you make the wrong decision and trust the wrong provider? Is trial-and-error or word-of-mouth referrals the best way to make these decisions?

Our Liquidity Network was designed to ensure that no Forex and CFD broker should ever pay the hidden costs of building a business around service providers that are unreliable. Only the service providers who have a strong track record of measurable performance are admitted to the Network and each provider has a Service Level Agreement to all members of the Network that rely on their service – which is agreed in advance and continuously monitored and reviewed both with the service provider and the member of the Network that receives the service.

The Network earns the trust of all of our members by ensuring that:

  • Expectations for performance are set in advance
  • These expectations are shared with you and the Network member providing the service.
  • There is accountability against those expectations.

If a pattern of unreliable service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short.

Best of all? The switch is painless (typically done within 24 hours).

Why You Can Trust Us

We believe that Forex and CFD brokerages have a large number of critical operational responsibilities that are best outsourced to reliable strategic partners rather than tackling them internally. The benefits are clear: the brokerages can avoid the opportunity cost of building systems and invest the enormous time savings from outsourcing time-consuming administrative processes and focus on their strengths : growing the business.

In theory, this makes sense – but only if you pick the right service providers and can be confident that they will deliver to at least a level that you would expect if you invested the time to do it yourself. So…how do you do that? If you have ever found yourself unable to differentiate between service providers beyond the obvious difference in pricing, you are not alone – this is common and completely understandable. It is unreasonable to expect that you will be able to identify who the best service provider is in any area where you don’t have substantial personal experience. But can you really afford to risk the actual expense of what it will cost your business if you make the wrong decision and trust the wrong provider? Is trial-and-error or word-of-mouth referrals the best way to make these decisions?

Our Liquidity Network was designed to ensure that no Forex and CFD broker should ever pay the hidden costs of building a business around service providers that are unreliable. Only the service providers who have a strong track record of measurable performance are admitted to the Network and each provider has a Service Level Agreement to all members of the Network that rely on their service – which is agreed in advance and continuously monitored and reviewed both with the service provider and the member of the Network that receives the service.

The Network earns the trust of all of our members by ensuring that:

  • Expectations for performance are set in advance
  • These expectations are shared with you and the Network member providing the service.
  • There is accountability against those expectations.

If a pattern of unreliable service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short.

Best of all? The switch is painless (typically done within 24 hours).

Market Data

We believe that Forex and CFD brokerages have a large number of critical operational responsibilities that are best outsourced to reliable strategic partners rather than tackling them internally. The benefits are clear: the brokerages can avoid the opportunity cost of building systems and invest the enormous time savings from outsourcing time-consuming administrative processes and focus on their strengths : growing the business.

In theory, this makes sense – but only if you pick the right service providers and can be confident that they will deliver to at least a level that you would expect if you invested the time to do it yourself. So…how do you do that? If you have ever found yourself unable to differentiate between service providers beyond the obvious difference in pricing, you are not alone – this is common and completely understandable. It is unreasonable to expect that you will be able to identify who the best service provider is in any area where you don’t have substantial personal experience. But can you really afford to risk the actual expense of what it will cost your business if you make the wrong decision and trust the wrong provider? Is trial-and-error or word-of-mouth referrals the best way to make these decisions?

Our Liquidity Network was designed to ensure that no Forex and CFD broker should ever pay the hidden costs of building a business around service providers that are unreliable. Only the service providers who have a strong track record of measurable performance are admitted to the Network and each provider has a Service Level Agreement to all members of the Network that rely on their service – which is agreed in advance and continuously monitored and reviewed both with the service provider and the member of the Network that receives the service.

The Network earns the trust of all of our members by ensuring that:

  • Expectations for performance are set in advance
  • These expectations are shared with you and the Network member providing the service.
  • There is accountability against those expectations.

If a pattern of unreliable service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short.

Best of all? The switch is painless (typically done within 24 hours).

Technology

We believe that Forex and CFD brokerages have a large number of critical operational responsibilities that are best outsourced to reliable strategic partners rather than tackling them internally. The benefits are clear: the brokerages can avoid the opportunity cost of building systems and invest the enormous time savings from outsourcing time-consuming administrative processes and focus on their strengths : growing the business.

In theory, this makes sense – but only if you pick the right service providers and can be confident that they will deliver to at least a level that you would expect if you invested the time to do it yourself. So…how do you do that? If you have ever found yourself unable to differentiate between service providers beyond the obvious difference in pricing, you are not alone – this is common and completely understandable. It is unreasonable to expect that you will be able to identify who the best service provider is in any area where you don’t have substantial personal experience. But can you really afford to risk the actual expense of what it will cost your business if you make the wrong decision and trust the wrong provider? Is trial-and-error or word-of-mouth referrals the best way to make these decisions?

Our Liquidity Network was designed to ensure that no Forex and CFD broker should ever pay the hidden costs of building a business around service providers that are unreliable. Only the service providers who have a strong track record of measurable performance are admitted to the Network and each provider has a Service Level Agreement to all members of the Network that rely on their service – which is agreed in advance and continuously monitored and reviewed both with the service provider and the member of the Network that receives the service.

The Network earns the trust of all of our members by ensuring that:

  • Expectations for performance are set in advance
  • These expectations are shared with you and the Network member providing the service.
  • There is accountability against those expectations.

If a pattern of unreliable service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short.

Best of all? The switch is painless (typically done within 24 hours).

Business Intelligence

We believe that Forex and CFD brokerages have a large number of critical operational responsibilities that are best outsourced to reliable strategic partners rather than tackling them internally. The benefits are clear: the brokerages can avoid the opportunity cost of building systems and invest the enormous time savings from outsourcing time-consuming administrative processes and focus on their strengths : growing the business.

In theory, this makes sense – but only if you pick the right service providers and can be confident that they will deliver to at least a level that you would expect if you invested the time to do it yourself. So…how do you do that? If you have ever found yourself unable to differentiate between service providers beyond the obvious difference in pricing, you are not alone – this is common and completely understandable. It is unreasonable to expect that you will be able to identify who the best service provider is in any area where you don’t have substantial personal experience. But can you really afford to risk the actual expense of what it will cost your business if you make the wrong decision and trust the wrong provider? Is trial-and-error or word-of-mouth referrals the best way to make these decisions?

Our Liquidity Network was designed to ensure that no Forex and CFD broker should ever pay the hidden costs of building a business around service providers that are unreliable. Only the service providers who have a strong track record of measurable performance are admitted to the Network and each provider has a Service Level Agreement to all members of the Network that rely on their service – which is agreed in advance and continuously monitored and reviewed both with the service provider and the member of the Network that receives the service.

The Network earns the trust of all of our members by ensuring that:

  • Expectations for performance are set in advance
  • These expectations are shared with you and the Network member providing the service.
  • There is accountability against those expectations.

If a pattern of unreliable service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short.

Best of all? The switch is painless (typically done within 24 hours).

Surveillance

We believe that Forex and CFD brokerages have a large number of critical operational responsibilities that are best outsourced to reliable strategic partners rather than tackling them internally. The benefits are clear: the brokerages can avoid the opportunity cost of building systems and invest the enormous time savings from outsourcing time-consuming administrative processes and focus on their strengths : growing the business.

In theory, this makes sense – but only if you pick the right service providers and can be confident that they will deliver to at least a level that you would expect if you invested the time to do it yourself. So…how do you do that? If you have ever found yourself unable to differentiate between service providers beyond the obvious difference in pricing, you are not alone – this is common and completely understandable. It is unreasonable to expect that you will be able to identify who the best service provider is in any area where you don’t have substantial personal experience. But can you really afford to risk the actual expense of what it will cost your business if you make the wrong decision and trust the wrong provider? Is trial-and-error or word-of-mouth referrals the best way to make these decisions?

Our Liquidity Network was designed to ensure that no Forex and CFD broker should ever pay the hidden costs of building a business around service providers that are unreliable. Only the service providers who have a strong track record of measurable performance are admitted to the Network and each provider has a Service Level Agreement to all members of the Network that rely on their service – which is agreed in advance and continuously monitored and reviewed both with the service provider and the member of the Network that receives the service.

The Network earns the trust of all of our members by ensuring that:

  • Expectations for performance are set in advance
  • These expectations are shared with you and the Network member providing the service.
  • There is accountability against those expectations.

If a pattern of unreliable service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short.

Best of all? The switch is painless (typically done within 24 hours).

The “Prime of Prime” Brokerage Business Model is Broken

How did we get here?

Before the Prime of Prime model became common, Margin Forex and CFD Brokers that needed institutional liquidity to be able to effectively manage their market risk had to put up millions of dollars of collateral just to get a prime brokerage account opened – an intensive process can take as long as a year.

Leverage provided by traditional prime brokerages typically range from 30:1 to 50:1 – a far cry from the 200:1 leverage typically provided by Margin Forex and Brokers to their clients.

Prime of Prime” brokers have stepped in to offer access to these institutions by essentially “white-labeling” their own direct prime brokerage relationships and offering typically 100:1 to 200:1 leverage to margin forex and CFD brokers – knowing full well that this is much closer to what is actually needed to operate that business. The prime of prime model gained widespread acceptance among margin forex and CFD brokers as a result.

Then a funny thing happened: as more brokers operating the prime of prime model entered the market, competition grew fierce. Prime of primes started marketing additional services to margin Forex and CFD brokers to be able to win market share, evolving into so-called “one-stop-shops” where their broker customers could get everything they needed.

This is a great idea – in theory – but the simple reality is that these prime of primes have taken on far more responsibility than their internal resources are able to support. And to invest in the resources to support their customers would mean cutting into their relatively low margins to invest into a cost center – which they only really needed for client acquisition purposes anyway. Once you sign the agreement, you are committed and there is less pressure on the Prime of Prime to actually deliver on what they say they will. As a result, they often don’t. Many don’t even try.

Aggregated Liquidity Is Counterproductive

Prime of Prime providers often boast about their multi-bank liquidity feeds, and proudly display the number of their bank trading relationships on their website like a badge of honour.

They all tout close relationships with some of the largest banks (and non-bank market makers) in the world.

  • Perhaps without realizing that every other Prime of Prime is doing the exact same thing with exactly the same Liquidity Providers.
  • Is it possible that some Prime of Primes are overestimating the strength of their relationship?

They claim that by aggregating liquidity providers they can deliver the lowest pricing to their client. In fact, the opposite is true.

We earn the trust of all members of our Network by ensuring that expectations for performance are set in advance and there is accountability against those expectations. If a pattern of bad service emerges for any reason, we match you with a different provider and ensure they understand exactly where the previous provider fell short. And best of all: the switch itself is painless (typically done within 24 hours).

Market Makers do not provide their most aggressive pricing into aggregated liquidity pools. This makes sense – because why should they? If they take the risk of providing the best bid or offer available, they may only “get hit” on the entry or the exit – they want to capture both sides. It is generally safer to be a bit less aggressive and wait for their price to get hit when it reaches the top of the book at random or when the liquidity at the top of the book is swept and additional liquidity further down the book is needed. That’s right: liquidity aggregation in practice is essentially a game of musical chairs, where the music stops at random and a “winner”, who happens to be still standing at the time, is declared

Lack of Transparency, Performance Reporting and Risk Surveillance

When choosing a Prime of Prime provider, the Salespeople you speak to make a lot of promises about the service you can expect and they can be quite convincing that it will add value to your bottom line. So after you sign their agreements and start trading – how often do they review their performance against these expectations they set? Has this ever actually happened? Are you expected to do the analysis yourself? Do you even have access to the data that would be needed to do it on your own if you want to? (OK, if you have to – no one actually wants to). How do you know?

The Prime of Prime brokerage sales proposition is that you have access to several large bank and non-bank liquidity providers to service your business

They may even have these liquidity provider logos on their website. Are those the same liquidity providers that you are receiving prices from when trading with them? Do you know how much of your business each liquidity provider is actually executing? Is it really all of them? Some? One? How do you know?

Expectations for what spreads to expect during market hours are crucial for every Forex and CFD brokerage, as this determines the quality of pricing their traders will receive – which we all know they monitor very carefully. Are you receiving the actual typical spreads that were promised? Is that reported to you or do you have to track it yourself? How are you protected against price spikes or spreads widening to levels that would be deemed excessive and are thus unacceptable to your traders – even during periods of high volatility?

Sourcing Liquidity Directly from a Larger Margin Forex and CFD Brokerage is Risky

Putting aside for a moment the idea of sending your business to a direct competitor, your trading profit and loss with the firm could lead directly to their insolvency. This has actually happened before.

If there are any disputes or disagreement on reporting or on the integrity of the prices being quoted by the Brokerage that is providing you liquidity, who do you think will get their way in the end? You, the “client” or the Brokerage providing the service, who, by the way, is also holding your collateral.

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