FX Prime Brokerage
The Bank of Russia eliminated competition from the entire forex market in the country after it decided to strip several brokerage firms of their license to trade in forex. Most of the foreign exchange dealers operating in the country saw their licenses revoked last year.
B2Broker has been highly active over the past few months in terms of its overall business and developments. Even small and medium size funds are scrutinized thoroughly by banks, which are usually the prime brokers.
Prime brokerage
If a firm is found to be undercapitalized, banks do not hesitate to break the relationship under the Basel III norm. To satisfy the rules, banks have tightened the leverage offered to retail Forex companies. However, for a retail Forex broker, leverage is the lifeline.
Additionally, very few retail trading companies have enough financial strength to set aside tens of millions in a segregated account with prime banks. Furthermore, retail brokers may or may not get the best quote while dealing with a single prime broker. Moreover, the frequency of requotes, if any, should be minimal, and orders should be quickly filled. Finally, a retail broker needs to constantly allocate capital on technical upgrades.
Dealing with a PoP broker would eliminate these issues and a retail broker would be able to concentrate on acquiring customers. To sum it up, a retail company will have the following benefits while dealing with a PoP broker:.
- Foreign Exchange Prime Brokerage?
- forex strategies work review;
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- stock options if you leave company.
- value at risk in forex market;
The demand for prime of prime services is only expected to increase in the years to come as banks are turning more and more stringent when accepting a new broker-client. Retail traders should be aware of this and prefer to deal only with those Forex brokers that have stable relationship with solid PoP intermediaries.
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What Is Prime of Prime in Forex?
Smaller prime brokers find new ways to gain foothold on slippery FX ladder. By Paul Golden. Reducing gap.