Multi-asset trading platform Fortex introduced on Wednesday its xForce Prime of Prime Suite, an aggregation solution designed for brokerages and banks seeking to become forex and contracts for difference (CFDs) liquidity providers. By offering white label omnibus accounts, users can distribute their price streams directly to partners’ systems.
The main features of xForce Prime of Prime Suits are that it provides real-time access to brokerage profit and loss (P&L) information and that brokers receive real-time insight overall exposure across all of their accounts. The aggregate solution also enables brokers to create and manage the pricing profiles that they provide to partners, utilize different execution and revenue generating strategies, manage their risk books using sophisticated risk management tools, as well as access their from anywhere.
“For the first time ever, FX Brokerages can deploy an all-in-one liquidity aggregation solution that is scalable and easy-to-use. A system that does not require any expensive hardware installation or IT resources and that provides an institutional-grade front end for corporate account management along with a flexible back office management suite,” said Natallia Hunik, global head of sales at Fortex. “xForce Prime of Prime allows FX Brokers to manage their business from anywhere, expand partnership and liquidity distribution networks and to provide value and knowledge in ways that no other system can,” she added.
The liquidity aggregator provides access to the Fortex 5 institutional trading platform for omnibus account management and to an aggregated corporate account. Brokers that use xForce Prime of Prime Suite can also provide FIX API access for partners and to manage the whole process via flexible middle and back office portals, giving all parties a clear view of their financial performance and the tools to make smarter decisions for their businesses.
Forex brokers usually act as mediators in order execution between clients and the other side. Such brokers, called no-dealing desk (NDD) brokers, use liquidity providers, regardless whether just one or a deep pool of them. Once they become their own liquidity providers, brokers turn into market makers, or dealing desk brokers. This has some advantages, but it also has some down sides – they can manipulate the price feed. The main thing is that market makers make a profit when traders lose, since they are the other side in a transaction, which results in conflict of interest. NDD brokers, on the other side, prifit from spreads, commissions, and mark-ups, which are the same regardless whether the order is a losing or a winning one.
Being a market maker, however, allows brokers to provide liquidity to peers once they grow and expand.
The list of forex market makers includes Forex.com, part of Gain Capital, ForexTime (FXTM), Oanda, Plus500, ICM Markets, CMC Markets, and others.
California-based Fortex is an electronic communication network (ECN) trading platform with a daily trading volume of up to $12 billion. It supports trading in forex, CFDs, metals, and energy. It has offfices in New York, Boston, Hong Kong, Shanghai, and London. The platform is used by traders, brokers, market makers, money managers, banks, hedge funds, and other investors.
Fortex’ clients portfolio includes forex brokers Interbank FX, Pepperstone, Advanced Markets, and Macquarie Bank, among others.