Choosing the Trustworthy Liquidity Provider
Trading of assets has been gaining momentum in the last couple of years; this is why dozens of liquidity providers enter the market annually. When talking about choosing a reliable LP, no “all-in-one” solution meets the demand of any brokerage company. It is challenging to select the best-matching option among a large number of liquidity aggregators. Let’s note some of the top aspects to analyze when looking for a credible LP.
The Set of Services Offered by the Liquidity Provider
First and foremost, consider the set of products you will offer traders and investors. It is a crucial thing when thinking about how to start a Forex business. It would be a good idea to choose a multi-asset LP that can provide any kind of liquidity. For example, many business owners decide to start cryptocurrency business, and liquidity on the top digital coins (like Bitcoin, Ethereum or Ripple) is in demand. However, not every liquidity provider can offer such a solution, so Forex liquidity is also demanded. You need to check if FX, equities, commodities, and other trading instruments are covered. This approach will help you to find the perfect company to cooperate with.
The Regulation of a Liquidity Aggregator
As for now, different businesses are controlled by regulation bodies, but the financial sphere is under close supervision. It is better to select an LP with a trustworthy license since customers prefer to protect their rights appropriately. Remember that financial companies are vulnerable to some troubles, while some venues try to operate the market for personal benefit. It turns into dissatisfaction of their clients, so it is essential to analyze activities of the possible partnering liquidity aggregators. This is why you need to check the LP on the following aspects:
- Does a reliable jurisdiction issue the license?
- Does the platform protect the funds?
- What is the track record of the company?
If there is some trouble with any of these questions, you should cease cooperation with this provider of liquidity.
Terms & Conditions Offered
There is another crucial aspect when it comes to choosing a reliable LP for cryptocurrency exchange software or a Forex broker. You need to ensure that the terms and conditions are convenient enough. Here is a basic example, if you are looking for a White Label trading platform solution, you should confirm that the company is competent in this question. Similarly, if you want to launch a money management service, examine whether the LP can provide liquidity for your demands. In the end, if you expect to use specific spreads and fees, it is advisable to discuss these with a manager.
Learn Your Clients Needs Before Signing Up
To provide top-notch services and join a string of Forex prime brokers, you need to learn more about your future customers. A liquidity aggregator will want to analyze the target audience; it will help to create affordable pricing and order execution conditions. If you make this right, you will ensure that the White Label FX company and the LP meet the exact demands and troubles with order execution are excluded.
Quality of Service
It seems logical that you should check if the liquidity aggregator meets your business needs. For example, it is crucial to access round-the-clock customer support and the assistance of the account manager. Answering these questions, you will be able to select the best-matching solution for your brokerage company.
Other Aspects To Take Account
In addition to finding the best LP, you should evaluate your specific requirements and consider the most critical aspects. First, you need to analyze the overall set of offers provided by the company, looking for preferred assets and kinds of liquidity. Market depth is also vital for starting a cryptocurrency exchange or a Forex broker. The deep order book allows traders to get their orders filled instantly.
The high-end liquidity aggregators should also have an automated reporting network to provide business founders with trade reports, FIX bridge reporting and other types of reports. In addition, access to the order book is also required. Finally, trustworthy providers of liquidity should be able to integrate different kinds of APIs, MetaTrader 4/5 solution and FIX bridges.