Ticktrader: Liquidity Aggregation for digital assets & forex exchanges

We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We’re also a community of traders that support each other on our daily trading journey. Alexander Shishkanov has several years of experience in the crypto and fintech industry and is passionate about exploring blockchain technology. Alexander writes on topics such as cryptocurrency, fintech solutions, trading strategies, blockchain development https://www.xcritical.com/ and more. His mission is to educate individuals about how this new technology can be used to create secure, efficient and transparent financial systems.

Key Elements of Takeprofit Liquidity Hub

Broctagon NEXUS is a liquidity aggregator that interacts with the industry’s biggest stakeholders with the highest crypto-trading volumes and operates with more than 20 prime exchanges. Saxo Group is a bank that provides liquidity services to manage risks and operate across multiple financial instruments. The bank is headquartered in Copenhagen and has offices in liquidity soft solutions forex key financial centers, including Denmark, the UK, Amsterdam, Singapore, Australia, Hong Kong, and Switzerland. Ausprime provides brokers, hedge funds, and other clients with prime of liquidity services. The company acts as a B2B prime broker that fits the financial regulatory framework of different regions through the MiFID II and CySEC licenses.

fx liquidity aggregation

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FlowBank is an online bank offering brokers access to more than 50,000 trading instruments, including stocks, ETFs, bonds, futures, options, CFDs, and crypto-asset products. CMC Markets is a liquidity aggregator that offers brokers to expand their portfolio with more than 10,000 trading symbols, including currency pairs, metals, indices, energy, commodities, and cryptocurrencies. ​​Finalto is a liquidity aggregator offering a complete package including the best possible liquidity services through its extensive selection of Tier 1 banks, ECNs, and non-bank liquidity pools. The DMALINK white label or private label infrastructure provides Banks, Hedge Funds and Proprietary Trading Firms with a complete, powerful and efficient FX suite of trading services, risk management tools, and back-office systems. A range of powerful and purpose built no-up-front cost FX technology and liquidity aggregation solutions give our clients the edge in Foreign Exchange trading and liquidity maintenance. As the speed of the FX market is likely to increase again in the foreseeable future, many participants are now turning to technology vendors, such as oneZero, to help them process the deluge of data needed to find the liquidity that best fits their trading profile.

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Providing a stable trading process requires a closed and continuous process of liquidity aggregation that ensures the smooth operation of all necessary systems. It is common for brokers and companies receiving liquidity from large liquidity suppliers to create liquidity pools through their application, which increases trade turnover. As a result, clients connected to these companies act as liquidity consumers and suppliers. Several sources of liquidity are responsible for creating liquidity in the crypto market. In the ever-evolving landscape of financial markets, brokers and other financial institutions continuously seek innovative solutions to improve their market access. If you’ve heard the term but are unsure about its implications, you’ve come to the right place.

FXOpen Acquires Soft-FX Liquidity Aggregator

  • Computer algorithms allow customization of the price streams for both the liquidity provider and the receiving counterparty.
  • When Deutsche Bank trades on multilateral trading platforms, it may do so on an anonymous basis, in which case the liquidity provider will only know the identity of Deutsche Bank once the trade has been executed.
  • A foreign exchange aggregator or FX Aggregator is a class of systems used in Forex trading to aggregate the liquidity from several liquidity providers.
  • The phrase “corporate investor” (or capital corporation) is typically used to refer to large, international companies or their associations that gather funds (capital) from smaller players with the intention of making money through investments in capital markets.
  • Providing a stable trading process requires a closed and continuous process of liquidity aggregation that ensures the smooth operation of all necessary systems.
  • Different liquidity providers can deliver widely varying quotes due to the decentralized nature of the market.
  • The company currently serves different markets from the USA, Canada, Australia, Japan, India, New Zealand, China, Turkey, Russia, Great Britain, Poland, and South Africa.

This is where smart liquidity aggregation steps in, revolutionizing the way brokerages operate and paving the way for exceptional trading outcomes. Liquidity aggregation is the process of combining buy/sell offers for an asset from different sources and directing them to a given executing party. When a broker’s primary liquidity provider becomes unavailable, additional providers can step in to ensure continued operations. In other words, working with liquidity aggregation implies cooperation and dependence on a third party offering such a service.

Liquidity, playing the most substantial role in the stable functioning of all types of capital markets, without exception, has a huge impact on the efficiency of electronic trading. To ensure the latter, there is a special process aimed at accumulating liquidity from various sources and its further redistribution among market participants to ensure the ability to conduct large transactions at prices closest to market prices. Bound is now utilizing Integral’s FX solutions, at a fixed subscription cost, to aggregate liquidity from multiple providers and market data sources, offering their clients access to institutional-quality pricing. This is delivered via API, offering seamless integration with Bound’s existing systems and an enhanced user experience for end-users. Bound has also deployed Integral’s risk management, monitoring and analytics tools, all with unmatched uptime and customer support. To sum up, traders seeking optimal market conditions and efficient execution should consider leveraging advanced tools that seamlessly integrate diverse liquidity sources.

fx liquidity aggregation

The market demand and supply determine the spread, and the broker receives the revenue as a commission on the transaction volume. Currency is considered the most liquid asset possible because it can be exchanged for anything, including another currency. Forex trades over 100 currencies; therefore, it tops the list of the most liquid markets. In terms of liquidity, any asset in the FX market can be highly liquid, medium liquid, or low liquid.

Those who want to understand the mechanics of FX execution, the technology behind it, and to reach Level 80 in forex liquidity management. It is intended primarily for expanding FX/CFD and Crypto brokers, for those considering working with multiple liquidity providers, and for brokerage house employees wanting to increase their market knowledge. The aggregation of liquidity directly affects the speed of execution of market orders in the financial markets.

In general terms, increased liquidity will always be the key to the best trading experience by reducing (or eliminating) the spread of any given financial instrument. Operating since 1997, Libertex is an international broker with more than 20 years of financial market and online trading experience. The platform is mainly engaged in Forex trading, energy, metals, and futures contracts, with retail customers, people without special experience, and professional traders as typical clients. Integrating Finalto PoP services with FX Matching, institutional clients have access to advanced liquidity and superior trading capabilities.

fx liquidity aggregation

In electronic trading, liquidity aggregators have become a crucial component, especially in a fragmented and decentralized market like forex, where there is no single central exchange. The main source of liquidity in trading any financial instrument on any market are the incoming buy/sell orders from ordinary private traders and investors. By placing market and pending orders, they trigger the process of formation of liquidity, which can be used to replenish liquidity in low-liquid assets.

fx liquidity aggregation

Alpaca Broker API operates with crypto & stocks, providing brokers with modern architecture and support for real-time events. One of the primary drivers behind this is the rising use of automation and technology used by prop firms or Trader-Funded Firms (TFFs). With so many options available in the market, picking the right tools can be overwhelming—researching can be a chore and time-consuming.

Considering all this, LAs can become an outstanding tool for improving marketing efficiency and lowering transaction costs. By offering increased market depth, better pricing, improved execution speed, and access to multiple markets, liquidity aggregation paves the way for superior trading efficiency. While not without its challenges, with careful planning, implementation, and management, this could be your secret weapon for outstanding trading performance. It is through such strategic innovation on its platform that smartTrade distinguishes itself in the liquidity aggregation market. The provider is committed to the success of its clients and tailors its technology to meet their complex and evolving needs.

A crypto liquidity aggregator operates similarly to liquidity aggregators in traditional financial markets, connecting the aggregator and its users, particularly with crypto exchangers and crypto liquidity providers. FX aggregator refers to software or a platform that consolidates foreign exchange rates from multiple liquidity providers, allowing forex brokers to compare and execute trades at the best available prices. FX aggregators typically aggregate quotes and liquidity from various sources, such as banks and exchanges, in order to provide traders with a comprehensive view of the FX market and access to competitive pricing. Smart liquidity aggregation goes beyond simply consolidating liquidity from various sources; it also enables brokers to select the best prices and execute trades with speed and precision. By integrating with multiple liquidity providers, brokers gain access to a wide range of pricing options, allowing them to deliver highly competitive spreads to their clients.

Any “odd lots” (i.e. amounts below the minimum amount tradeable on a particular liquidity source) will be directed to all liquidity sources that accept the relevant amount for execution, unless otherwise agreed between us. If Deutsche Bank has been unable to execute the entire amount of your order pursuant to the FX Algo Services, the remaining portion of your order will not be executed. When Deutsche Bank trades on multilateral trading platforms, it may do so on an anonymous basis, in which case the liquidity provider will only know the identity of Deutsche Bank once the trade has been executed. If Deutsche Bank is not trading anonymously, then the liquidity provider will know that the order has come from Deutsche Bank but will not know which particular desk within Deutsche Bank has submitted the order. The fee for each transaction is added to the price Deutsche Bank receives from the relevant liquidity provider(s) to generate the net price. Both the net and gross price of each transaction will be notified to you and the fee charged will be the difference between the two.

As practice shows, market participants often receive a speed several times slower than is provided by the trading conditions. In this case, if they do not have time to make a transaction at the desired price, slippage occurs, and they have to accept the next price in the price stack. In this case, the level of slippage is directly proportional to the level of liquidity, which, in the process of aggregation, increases in direct proportion to the degree of distribution of funds from different sources into different trading instruments. Liquidity aggregation is the process of combining offers to buy/sell an asset from different sources and forwarding them to executors. This process plays an essential role in creating the necessary conditions for the possibility of crypto trading operations at the most favourable (close to market) price in large trading volumes. FX aggregators play a critical role in the global FX market, facilitating price discovery, enhancing transparency, and improving execution efficiency for market participants.

Link TickTrader Liquidity Aggregator with your platform and utilize 40 ready-to-go connections to major digital asset, FX, and stocks liquidity providers. Bound is utilising Integral’s solutions to aggregate liquidity from multiple providers and market data sources. Match-Prime MTG is a liquidity provider regulated by the Cyprus Securities and Exchanges Commission (CySEC) and offers liquidity access to more than 2,000 trading instruments and 9 asset classes on a single account. IntegralFX is a liquidity provider offering brokers access to multiple securities, including forex, metals, energy, CFDs, etc.

This aggregation allows traders to simultaneously obtain streamed prices from multiple LPs or liquidity pools. Utilisation of Deutsche Bank’s FX Algo Services does not guarantee execution of the entire amount of your order. Your order may be executed by partial fills at different prices and/or against different liquidity sources.

Panda Trading Systems is a trading platform offering brokers access to the stream market. Leverate is an aggregator, providing brokers liquidity from top financial institutions and multiple securities, including forex, CFD, Crypto, and more. ICE Data Services is a market data provider offering brokers data on 2.8 million fixed-income securities and reference data on more than 35 million financial instruments.

Let’s cover its benefits, techniques, implementation strategies, and even the challenges that come along with it. Onezero is a liquidity aggregator that provides brokers access to multi-asset class liquidity from global liquidity providers and venues. The company is headquartered in Boston and runs development and operations centers in Asia, Australia, Europe, North America, and the United Kingdom.