Guide for FX and CFD brokers to aggregate multi-LP liquidity, prevent off-market pricing, handle wide spreads, rejections, shallow depth, and know when to use a prime broker.
This book is for start-up FX and CFD brokers, teams planning a brokerage launch, and brokerage staff who want a clear view of liquidity and execution mechanics. Managers can keep it as a desk reference and share it across departments.
It’s especially useful for CFD brokers who depend on precise, timely quotes and need to reduce slippage and service issues. You’ll see the common LP pitfalls and how a liquidity aggregator addresses them in practice.
You’ll learn how a liquidity aggregator works: consolidating quotes, routing to the best price, and splitting orders across LPs to use available depth. You’ll see how to detect and filter off-market quotes, understand latency arbitrage, and manage the core failure modes, so clients see stable prices and fills.
You’ll be able to design your LP and credit setup with confidence: choose and tune the number of LPs, monitor spreads, liquidity, and reject ratios, and decide when to use a prime broker or a multi-PB arrangement, knowing the efficiency gains and the risks.
“Usually explanations of the common broker practices to a wider audience offer a misleading oversimplification. This book is a very in-depth and insightful read for anyone who is interested in trading and who has ever wondered what happens behind the scenes at their brokerage. This book is aimed at those who would like to start their own brokerage, at backoffice, customer care, IT, and dealing desk employees. It will be useful also to professional traders, willing to know how FX dealers operate.”
“Non-professional traders and investors, especially beginners, can be split into two camps: those who believe that FX brokerage business is rocket science, and those asserting it is a fraud. This handbook explains what the business of an FX brokerage really is, in a structured and detailed way, while still easy to understand. It is useful for brokerage personnel too, as it may help them to develop a broader perspective on their everyday work.”
