What to expect when moving from Retail to Wholesale (Institutional) FX

Posted by Richard Perona on Apr 22, 2018 12:12:00 PM

I thought it would be useful to compile a short list of the main differences found when trading OTC (over-the-counter) FX with an STP (Straight Through Processing / No Dealing Desk) “Prime of Prime” and a Retail brokerage.

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Topics: Thought Leadership, Wholesale FX

How to get an LEI number if you don’t have a LOU (Local Operating Unit) in your country?

Posted by Natallia Hunik on Apr 10, 2018 8:20:55 AM

The global push for greater transparency in financial markets continues to gain traction with top tier regulators now requiring that all entities, engaged in trading financial markets, report their LEI (Legal Entity Identifier) number to regulatory repositories.
In the European Union, this process started as of January 3rd, 2018 as per MIFID 2. In Australia, in accordance with ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844, relief from the requirement to report the entity Identifiers ends on September 30, 2018, which means that starting from September 30, 2018, entities regulated in Australia will need to report LEI numbers for their corporate clients.

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Topics: MiFID, MiFID2

Who are the real beneficiaries of MIFID 2?

Posted by Bjorn Enqvist on Jan 22, 2018 9:18:50 AM

I’m sure there aren’t many industry peers who have managed to escape the MIFID 2 avalanche this past year and, perhaps only the frenzy surrounding crypto currencies, ICO and Bitcoin comes close to the boiling hot MIFID 2 topic in 2017.

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Topics: MiFID, MiFID2

MiFID 2: Are you a High Frequency Trader?

Posted by Richard Perona on Dec 6, 2017 6:16:01 AM

As January 3, 2018 approaches, FX industry participants are busy reading through the new financial laws of “Markets in Financial Instruments Directive” (MiFID 2) in an attempt to understand how these will affect them going forward. Originally, MiFID was created following the 2008 financial crisis in an effort to standardize the regulatory disclosures for particular markets. MiFID 2 came along with a revised set of standards which will enforce transparency, enhance investor protection and expand reporting to regulators, effectively changing the way that Europe’s secondary markets function. The significance of these changes should not be underestimated as the regulatory expectations of higher quality data sets will most likely lead to more regulatory issues and fines. In a continuation of Advanced Markets’ ongoing, fact-finding series about MiFID 2, (High Impact Changes), I will be exploring the impact of the pending regulations, specifically on how they relate to those engaged in Algorithmic Trading - High Frequency Trading (HFT).

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Topics: MiFID, MiFID2

5 ways to hack FX advertising in China

Posted by Yuhan Mo on Nov 8, 2017 7:07:39 AM

From social media strategy to content creation, what are the steps to take to reach the 1.4 billion-people Chinese market? 

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Topics: Forex Marketing

MiFID II Reporting - DRSPs, APAs, ARMs, CTPs

Posted by Natallia Hunik on Oct 19, 2017 8:00:00 AM
by Natallia Hunik, Global Head of Sales at Advanced Markets & Fortex, Inc. and 
Ron Finberg, Head of Business Development at Cappitech.
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Topics: Regulation, MiFID, MiFID2

What is the Best MAM system for MT4 / MT5?

Posted by Anya Aratovskaya on Sep 26, 2017 8:50:43 AM

MAM is an acronym for Multi Account Manager, a plugin originally designed for the Meta Trader 4 Platform to allow the proportional (or any set) profit and loss distribution from Fund Manager (or Master) to Investors (or Sub Accounts). 

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Topics: MT5, MT4, MetaTrader

MiFID II - How Many Liquidity Providers Should a Broker Have?

Posted by Natallia Hunik on Sep 13, 2017 8:42:49 AM

Best execution policy under MiFID adopts a multi-faceted approach that addresses, amongst other things, quality of execution, trading conditions extended to clients and the counterparty selection process. It also provides directions and guidelines on how best execution can be achieved. 
The execution policy, set forth in MiFID II rests on several main pillars and I will briefly describe my findings on these below. 

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Topics: Regulation, MiFID, MiFID2

Does a “Tied Agent” designation equate to an “Introducing Broker (IB)” under MiFID II?

Posted by Shobin Mathew Simon on Aug 15, 2017 7:50:00 AM

With the deadline for MiFID II implementation fast approaching, a lot of confusion and uncertainty still exists within the FX Industry. MiFID II regulation is divided into several distinct rule sets with the legislation applying to a broad range of financial industry players, those who provide investment services, such as investment banks, portfolio managers and brokers, and intermediaries such as inter-dealer brokers and market-makers. The main objective of MiFID II is to ensure the fair, effective and safe operation of financial markets. Failure to comply with the directive could result in significant fines.

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Topics: Regulation, MiFID, MiFID2

Top 5 most useful MT4 / MT5 Bridge features

Posted by Anya Aratovskaya on Aug 4, 2017 6:17:18 AM

The MetaTrader 4 Bridge is one of the most popular add-ons for MT4 Servers. It was created in early 2000 and, ever since then, there have been many rumors as to who actually developed the first commercial version (of course, many industry veterans know the name). 

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Topics: Platforms & Technology, Thought Leadership, MT5, MT4

What is LEI number and where to get one?

Posted by Natallia Hunik on Aug 1, 2017 8:19:40 AM

Welcome to a financial world, full of mysterious acronyms. LEI, CASS, ECP, EMIR, MiFIR, MTF, OTF… This industry just loves acronyms and MiFID II just gave us a whole lot of new ones to work with.
One that I have started hearing more often is the LEI number and it relates directly to the requirements embedded in the upcoming MiFID II directive. The following article will hopefully give answers to these much-asked questions, what is an LEI? Who needs one? Why it is required? How do I get one?

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Topics: Regulation, MiFID, MiFID2

MiFID II: Will you finally know who is on the other side of your trade?

Posted by Natallia Hunik on Jul 19, 2017 7:00:00 AM

MiFID II, the “Markets in Financial Instruments Directive”, is legislation that is set to be implemented across the European Union on January 3rd, 2018. As this due date approaches, many market participants are scrambling to implement changes to hopefully comply with the new rules. Some, on the other hand, prefer to procrastinate as long as possible in the hope of getting further clarity on this pending regulation.

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Topics: Licensing, Regulation, MiFID, MiFID2

How does one define “best execution” for FX Trading Firms under MiFID II?

Posted by Anya Aratovskaya on Jul 12, 2017 8:41:06 AM

While some industry sources are arguing whether or not MiFID II will dramatically affect the FX industry, most FSA and CySEC licensed FX brokers are rapidly adjusting policies in order to comply with the new requirements. 

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Topics: Licensing, Regulation, MiFID2

Natallia Hunik on the state of FX Industry in Cyprus, Forex Prime of Prime, MT5 and Automation | iFXEXPO 2017, Limassol

Posted by Advanced Markets Team on Jun 23, 2017 1:14:41 PM

Natallia Hunik, Global Head of Sales at Advanced Markets and Fortex, Inc. and Andrew Saks-McLeod of FinanceFeeds sat down during the iFXEXPO 2017 in Limassol to discuss the state of FX industry in Cyprus and what future will bring. 

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Topics: Thought Leadership, Prime of Prime, MT5

FX Leverage Globally

Posted by Natallia Hunik on May 3, 2017 8:34:41 AM

FX is the most liquid market in the world with over 5 trillion USD in daily turnover, and 1.6 trillion USD in OTC spot transactions executed each day on average. Volatility makes it an attractive investment vehicle for many traders around the world, institutional and retail. Retail FX has been around for longer than 2 decades now, but we have yet to see the industry reach a mature state.

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Topics: Thought Leadership, Leverage

Navigating the ASIC FX Brokers’ Register and, what does it mean to "Make a Market" in Australia?

Posted by Natallia Hunik on Apr 5, 2017 8:48:25 AM

More than a few times over the past year, I have come across instances where companies have thought that they were paying for legitimate ASIC licenses when, in reality, that was not the case. There appears to be several “light fingered” agents operating in the market (particularly, in the Asia region) who are “selling ASIC licenses” at a discounted price.

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Topics: Licensing, Regulation

Are you fully prepared to start your own FX Brokerage?

Posted by Anya Aratovskaya on Mar 7, 2017 8:21:02 AM

Yesterday, I got an email from one of my old contacts thanking me for persuading him not to go into the retail FX brokerage business last year. The email was sent from the corporate domain of his new business venture, one that is apparently doing well with only a 30% involvement with the FX industry.

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Topics: Forex Brokerage, Start Your Own Forex Brokerage, Brokerage, SYOB

Biggest Trends in Chinese FX Market in 2017

Posted by Natallia Hunik on Feb 20, 2017 9:13:22 AM

Do you think 2017 will be another big year for prime of prime? If so, you’re in very good company.

Our view is that, as the Chinese market matures, the 2017 trends in China could boil down to the following:

  1. Quality over price: sourcing liquidity from real prime of primes
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Topics: Thought Leadership, Prime of Prime

How do STP brokerages make money?

Posted by Yuhan Mo on Feb 1, 2017 6:14:38 AM

There are several ways that an STP brokerage can make a profit. The broker may either charge their clients a commission ($X per $million), apply a markup to the price feed, or perhaps a combination of both. 
In MT4, the commission charged to the client is typically set in deposit currency per lot ( In this article, we will be using US Dollars as deposit currency for an easy and clear explanation).  
An STP brokerage can also choose to charge their clients a markup, which will be added into spread that their retail clients see. Markup is normally defined as points added per lot. Markup is usually invisible to your clients and tends to be more flexible as you have the ability to adjust the markup according to market conditions.

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Topics: Start Your Own Forex Brokerage, Brokerage, STP

Fundamental Manual or Algo Trading – Which is Best?

Posted by Richard Perona on Jan 17, 2017 8:22:33 AM

In 2016, we have seen some incredible market dislocation due to various global events (BREXIT, US Elections, OPEC, GBP Flash Crash, FOMC to name a few). Having experienced my fair share of these moves, I find myself in a unique position to be able to speak with a diverse group of market participants, ranging from Fund Managers to Hedge Funds and individual traders, each of them trying to successfully navigate through these turbulent markets.

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Topics: Thought Leadership, Algo Trading, Manual Trading

FX Glossary: The ultimate dictionary of Forex terms you should know

Posted by Advanced Markets Team on Jan 16, 2017 10:49:00 AM

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

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Topics: Forex B2B

5 Reasons to switch your Liquidity Provider

Posted by Anya Aratovskaya on Dec 20, 2016 3:24:10 PM

Traditionally, December is the month when the majority of FX professionals take some well-deserved time off. Fund Managers are avoiding any major market participation that could negatively impact annual return statistics; bank employees are trying to use up their remaining vacation time, and the overall the spirit of holidays (Christmas, Hanukkah, Omisoka, Kwanzaa, and many others) makes December the perfect time to relax ahead of the January hype.

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Topics: FX Liquidity

Are you aware of a change to Google search that may greatly impact your FX broker marketing?

Posted by Natallia Hunik on Dec 12, 2016 2:29:46 PM

It’s no secret that we live in a technological world; a world where mobile has long become the prevalent vehicle for communication and business for all of us. Mobile now dominates the world’s search queries and mobile trading is reported to be responsible for around 30% of all trading at FX brokerages, with even higher percentages in Asia. As the world is adjusts to this new reality, the release of mobile apps, for its products, is now a must for FX brokerages and platform providers alike.

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Topics: Thought Leadership, Forex Brokerage, Start Your Own Forex Brokerage, Forex Marketing

Sell Smarter: TOP 5 tech tools for successful FX sales professionals

Posted by Natallia Hunik on Nov 29, 2016 3:10:00 PM

New technology is transforming how we do business in the 21st century, from the way we communicate, to the route we choose when we drive home from work and even the way we check our fridge for the food that we need. In the same way, the tech revolution has significantly changed things for sales professionals and the sales process. It seems that, every day, new platforms emerge that continue to transform the ways in which we communicate with prospects and that, undoubtedly, impact the way we structure our days.

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Topics: Thought Leadership, Forex B2B

What clients want from a Prime of Prime

Posted by Natallia Hunik on Nov 4, 2016 1:44:45 PM

Prime of Prime in FX, has undergone a lot of changes in the past few years, yet it remains one of the most highly demanded services in today’s marketplace. Prime of Prime’s role is to extend interbank market access to clients who do not have access to credit. To put it another way, it helps create direct market access for those clients who do not meet the stringent collateral and credit criteria that’s needed in order for them to establish their own, direct, prime broker relationship with a bank. The main value that a real Prime of Prime delivers is non-latent access to institutional trading, in a secure and regulated environment.

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Topics: Prime of Prime

Wind of Change? What the new CySEC rules mean to the FX industry

Posted by Bjorn Enqvist on Aug 16, 2016 11:24:43 PM

CySec’s strategic move capitalizes on a potential shift in the global FX landscape.

As someone who is very passionate about FX and football, I’m always keen to draw parallels between both whenever possible.

Where football and, indeed, sport in general is concerned, 2016 will forever be remembered as “the year of the underdog”

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Topics: Brokerage, Licensing, Regulation

5 reasons to trade with Advanced Markets

Posted by Advanced Markets Team on Jul 7, 2016 3:37:00 PM

Here are the Top 5 reasons why you should consider opening Live Account with Advanced Markets. 

1. Save money and time by dealing with real 100% STP Liquidity Provider - Finding a reputable prime broker that also offers quality institutional liquidity and transparent execution can be a challenging task. ASIC registered and licensed Advanced Markets Ltd. offers Prime of Prime (PoP) brokerage services and ECN model where aggregated institutional liquidity derives from Tier 1 banks and major non-bank sources. 

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Topics: FX Liquidity

Survival Guide for Brexit

Posted by Richard Perona on Jun 24, 2016 11:37:22 AM

Major market events are generally accompanied by periods of massive uncertainty, volatility and downright fear. It doesn’t matter whether these events are expected, like the Brexit vote, or unexpected like the SNB move last year, the outcome is the same. Many market participants have a few options on how to survive the dislocation. Fear of the unknown creeps into every financial exchange, instability reigns and price action is violent. These events has the potential to affect every trader, brokerage and bank for days, weeks and even years depending upon their severity and the resulting market fallout. Below, I will outline a few possible risk/reward strategies along with how to attempt to control the uncontrollable.

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Topics: Industry Trends, Thought Leadership, Forex Brokerage

Which is better for Block Trading: an ECN or a True Prime of Prime?

Posted by Richard Perona on Jun 9, 2016 8:47:31 AM

I should start by saying that this article may not be applicable to many market participants, but hopefully the information will be useful when for anyone looking to execute large market orders. 

If you are an Institutional Trader, a Fund Manager, a Bank or, perhaps, a brokerage hedging positions, then you will almost certainly know that the job of executing a 20, 50 or 100 million trade can be

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Topics: Prime of Prime

Tips to increase client conversions in FX B2B

Posted by Natallia Hunik on Jun 1, 2016 3:28:00 PM

Throughout my career I have encountered many different sales personalities. Each of them had their own network, their own approach to dealing with prospects, their own strategic vision and their own way of handling the sales process. However, just ask any sales manager and most will agree that the majority of sales people could be categorized as “openers”, rather than “closers”.

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Topics: Thought Leadership, Forex B2B

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