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.

The differences can be categorized as follows:

- Vetting / Onboarding
- Netting vs Hedging
- Deposits
- Execution
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Topics: Thought Leadership, Wholesale FX, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, STP, Forex B2B, Brokerage, Forex Brokerage, Traders

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: MiFID2, MiFID, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Regulation, Start Your Own Forex Brokerage, SYOB, FX Broker Startup, Brokerage, Traders, Forex Brokerage

Who Are the Real Beneficiaries of MIFID 2?

Posted by Advanced Markets Team 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.

For the better half of 2017, brokers and trading firms, falling under the reach of MIFID 2, were very busy implementing the parameters and protocol needed in order for them to comply with the new regulatory standards.

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Topics: MiFID2, MiFID, Institutional Trader, Institutional Broker, Retail Broker, Retail Trader, Regulation, Brokerage, Traders, Forex Brokerage

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.

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Topics: MiFID2, MiFID, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Regulation, Brokerage, Traders, Forex Brokerage

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?

Penguin Intelligence, a research agency subsidy of Tencent, recently reported that as of Q4 2016, there were 889 million active users monthly. People are spending, on average, 66 minutes each day on WeChat with 57.22% of new WeChat contacts added for work-related matters and 6.04% service providers. Over 80% of users used WeChat group for work-related purposes with WeChat group becoming an important venue for business communications.
These statistics clearly indicate that WeChat is the potentially the most powerful platform through which to reach new leads and clients for your business.

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Topics: Forex Marketing, Know Your Client (KYC), Forex B2B, Brokerage, SYOB, Start Your Own Forex Brokerage, Forex Brokerage, Thought Leadership, Company

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).

The Master Account serves as the primary (and the only real) trading account, and sub accounts receive the results of the actions performed on the Master Account (only proportional COPIES of the original trades).

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Topics: MT4, MT5, MetaTrader, Institutional Broker, Institutional Trader, Forex B2B, Brokerage, SYOB, Start Your Own Forex Brokerage, FX Broker Startup, Traders, Forex Brokerage

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).

MetaTrader 5 bridges are now beginning to emerge, and the speed of their development is directly correlated with the very recent growth in MT5 adoption rates.

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Topics: MT5, MT4, Platforms & Technology, Thought Leadership, Institutional Broker, Institutional Trader, MetaTrader, Brokerage, Forex Brokerage, Traders

What is an 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: MiFID2, MiFID, Regulation, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, UK FCA Registry, Start Your Own Forex Brokerage, SYOB, FX Broker Startup, Brokerage

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.

Regardless, what is clear at this point is that there are a number of significant changes that are coming down the pipe for the FX brokerages.

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Topics: MiFID2, Licensing, Regulation, MiFID, Institutional Broker, Institutional Trader, STP, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage, Prime of Prime, Traders, Forex Brokerage

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 FCA and CySEC licensed FX brokers are rapidly adjusting policies in order to comply with the new requirements. 

One of the key changes of MiFID II is an implementation of the term “best execution” and a directive to ensure “All Sufficient steps” (Article 64 -4) are in place to support that.

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Topics: Regulation, Licensing, MiFID2, FX Liquidity Provider, Institutional Broker, Institutional Trader, Start Your Own Forex Brokerage, SYOB, Brokerage, Forex Brokerage, FX Liquidity

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

Posted by Natallia Hunik 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. 

Watch our videos to the topics

  • FX Prime Brokerage
  • Automation
  • Future of Industry in Cyprus
  • MT5
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Topics: Thought Leadership, Prime of Prime, MT5, Brokerage, Industry Trends, Company, Traders, Forex Brokerage

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.

Two decades might be just an infancy stage for an asset class, one would say, and would be right.
Regulatory frameworks in many countries are not greatly fine-tuned to deal with FX or are not encompassing FX at all.

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Topics: Thought Leadership, Leverage, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, UK FCA Broker, STP, Regulation, Start Your Own Forex Brokerage, SYOB, FX Broker Startup, Brokerage, Forex Brokerage, Traders

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.

As we all know, there is no such a thing as free lunch. The use of words such as “discounted” and “fast-track”, with regard to obtaining a license in a reputable regulatory jurisdiction, should have immediately raised your eyebrows.

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Topics: Regulation, Licensing, FX Jurisdictions, Institutional Broker, Institutional Trader, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage, Forex Brokerage, Traders

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.

His experience has inspired me to write a short article that can serve as a wake-up call to anyone contemplating starting their own FX Brokerage.

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Topics: SYOB, Brokerage, Forex Brokerage, Start Your Own Forex Brokerage, FX Liquidity Provider, FX Technology Provider, Forex Marketing, FX Broker Startup, Forex B2B

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: Brokerage, Start Your Own Forex Brokerage, STP, FX Liquidity Provider, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Wholesale FX, MT4, Forex B2B, FX Liquidity, Forex Brokerage, Traders

FX Glossary: The Ultimate Dictionary of Forex Terms You Should Know

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

There are many Forex terms a FX Professional have to know to do a great job and to be successful. In order to help Brokers and Traders to get to know the basics of the FX industry, the Advanced Markets Team created this glossary. 
Discover the Advanced Markets FX dictionary here and feel free to contact us if you want us to add further terms!

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, FX Broker Startup, Forex Brokerage, Traders, Brokerage, SYOB, Thought Leadership, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Start Your Own Forex Brokerage

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

Posted by Advanced Markets Team 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: Licensing, Regulation, Brokerage

Why Gold Should Shine Brighter at Your Brokerage or Fund Manager

Posted by Richard Perona on Jan 20, 2016 2:25:00 PM

More times than not, an interested client inquiring about liquidity will ask the quintessential question, “What is Advanced Markets’ spread in EURUSD?” My standard, truthful response is always that, “the spread is dependent upon market conditions, as Advanced Markets is a true STP Prime of Prime and only provides aggregated liquidity from top tier, global banks.  With that being said, EURUSD spread should normally sit within an average range of 0.3-0.5 given our ability to provide very deep liquidity due to our favorable bank relations”.  Generally, when someone asks me this question, I will always follow up by mentioning our GOLD offering.  In my opinion, Gold has the potential to offer a prospective brokerage (or Fund Manager) more than the EURUSD spread can when looking at future revenues.  Many people look at the EURUSD first due to the fact that many brokers aggressively market their “tight” EURUSD spread in order to attract clients and get them in the door. Once they have them in, however, they tend to pile on the mark-ups across the other pairs in their offering.

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Topics: Thought Leadership, Brokerage, Gold

Setting Up an office for your FX Brokerage

Posted by Shobin Mathew Simon on Jan 5, 2016 9:03:00 AM

When someone starts thinking about opening a Forex brokerage their mind immediately fills with question after question. Which regulatory jurisdiction should I choose? How much capital do I need? What kind of license do I need? How do I get pricing? Where do I base the operation? The “office” / location question is usually the last that comes to mind but the choices made here can determine whether a business succeeds or fails. The following 5 points are therefore worth considering before making any decisions on your brokerage startup: 

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Topics: SYOB, Brokerage, FX Broker Startup, Start Your Own Forex Brokerage

Choosing a Suitable Regulatory Jurisdiction for an FX Broker Start-Up

Posted by Anya Aratovskaya on Nov 9, 2015 3:02:00 PM

The world of online Retail FX has become increasingly competitive and congested but, regardless, the industry remains extremely attractive to investors, insiders and entrepreneurs alike. One key factor adding to the attraction is the ease by which a person can actually start their own brokerage. In past years, starting a brokerage normally required expert technology and market knowledge combined with a significant amount of free capital but today, advances in technology and an increase in the options available for regulatory licenses have greatly reduced the cost and the “time-to-market”.

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Topics: Start Your Own Forex Brokerage, Brokerage, SYOB, FX Broker Startup

10 Things You May Be Missing When Selecting Your Liquidity Partner

Posted by Natallia Hunik on Oct 14, 2015 12:14:00 PM

I, along with my institutional FX Team at Advanced Markets and Fortex, am dealing with FX brokers who may be in search of liquidity, technology solutions of all kinds, infrastructure enhancements or sometimes just a price feed that is stable and reliable on a daily basis. We have seen it all from novice brokers that need everything explained from A to Z, medium-sized price-conscious brokers that are trying to bypass pre-qualifications and over-state their volume figures to get better deals to larger brokers asking us to fill out  lengthy RFPs (Request for Proposal)  while the work on selecting a new liquidity partner

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Topics: FX Liquidity, FX Liquidity Provider, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage

4 Ways to Verify That You Are Working with a Prime of Prime (PoP)

Posted by Richard Perona on Jun 30, 2015 7:22:00 AM

Over the past few years the traditional FX Prime Broker industry has been thinning out, creating a demand for the types of services they provided. The loss of the institutional big bank Prime Brokerage services has occurred due to credit risk, small profit margin, risk aversion and new regulation. This reaction by those larger prime brokers has been clearing the way for specialized FX Prime of Prime (PoP) firms to gain market share. A Prime of Prime brokerage is a one stop shop for retail brokerages, hedge funds, money managers and wholesale traders to access top tiered global bank liquidity, cutting edge technology, cost effective rollover rates and clearing services.

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Topics: Thought Leadership, Forex Brokerage, Prime of Prime, FX Liquidity Provider, Institutional Broker, Institutional Trader, Brokerage, Traders

How to Safeguard Your Forex Funds Against Brokerage Bankruptcy

Posted by Richard Perona on May 5, 2015 9:52:00 AM

On January 15, 2015, the SNB (Swiss National Bank) caused a massive upheaval in the FX industry when they manipulated the exchange rate of the franc and unpegged their currency against the euro.
This action threw the markets into complete panic, ultimately producing capitulation with the CHF pairs and creating catastrophic losses throughout the industry. Market participants were affected across the entire spectrum, all the way from the top tiered global banks down to individual investors.
The large banks and market makers were able to absorb the losses (or major gains if B Book), but the smaller, more vulnerable, participants could not.
Some brokerages were forced to close their doors due to negative balances as a result of the losses sustained from their client’s positions. A multitude of firms such as Alpari UK, Boston Prime, Excel Markets and Liquid Markets became insolvent, just to name a few.

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Topics: Thought Leadership, Forex Brokerage, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Forex B2B, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage, Traders

Meet the Experts

Posted by Advanced Markets Team on Apr 23, 2015 1:43:00 PM

Our team has a combined 100 years plus experience in institutional FX and prime brokerage fields. We use that experience and proven insights to work with FX brokerages and asset managers to enhance their offerings and achieve better operational efficiencies. At Advanced Markets and Fortex our focus will remain on helping you to solve complex problems and grow your business by leveraging superior Fortex technology and best of breed liquidity from Advanced Markets.

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Topics: Company, Thought Leadership, Prime of Prime, Traders, Brokerage