New York, NY (PressExposure) May 09, 2014 -- Forex industry veterans launch FTPrime, a brand-new gateway directly into the inter-bank FX market for individuals and small to mid-size trading firms.
FTPrime is an ultimate suite of services that combines technology, liquidity, and prime brokerage, to offer Forex traders both large and small unprecedented access to the inter-bank market. This new product aims to eliminate the current discriminatory situation that exists in the Forex market, in which smaller market participants are unable to access inter-bank grade liquidity due to low capitalization, and are over-charged for liquidity via wide spreads or high transaction fees.
Most existing STP liquidity providers do not provide prime brokerage/credit services, and most existing prime brokers do not offer execution platforms. FTPrime levels the playing field for small and mid-sized Forex market participants, and gives them never-before seen access to the inter-bank liquidity and prices thus far reserved for much larger, highly capitalized entities.
FTPrime has created technology that achieves direct cross-connect integration with major liquidity providers, without the high trade costs and high capitalization requirements currently maintained by prime brokers and liquidity providers. Small and mid-size Forex traders, brokers, and CTAs now have a new option for straight-through access to inter-bank liquidity and spreads, complete with a choice of various affiliated retail FX platforms, at a transaction cost of around $6 per USD 1 million traded.
How it works:
FTPrime aggregates prices from major banks such as UBS, Citi, and Deutsche Bank, and adds liquidity from providers such as Currenex, HotSpot, Integral, FastMatch, and others. At the same time, FTPrime aggregates the trading accounts of smaller market players into large trading accounts open with regulated second and third tier prime brokers such as Advanced Markets, FCStone, FXCM Prime, Forexlitas, etc. Accounts have a secure and fully independent back office and access control provided directly by FTPrime, and may use an array of retail execution platforms, accommodating trading tools /strategies via FIX and Java APIs.
INSTITUTIONAL TRADERS AND CTAs can expect vastly improved spreads, easy application of proprietary trading tools through FTPrime's FIX and Java APIs, and the ability to trade Forex without even a broker-dealer. By depositing directly with one of FTPrime's partner prime brokers, Forex traders and money managers can use one of the many retail platforms FTPrime offers to trade directly on the inter-bank market.
BROKER-DEALERS can offer their clients better spreads, and can increase volumes by offering clients true direct market access without a B-book. Risk can be better managed by offloading toxic flow to the liquidity provider.
INTRODUCING BROKERS can approach prospects from a stronger position, offering direct interbank market access through better-known, regulated prime brokers, instead of having to promote Forex brokers to act as middlemen between the trader and the market.
FOREX TRADING PLATFORM VENDORS can offer their broker-dealer clients an STP solution without the revenue uncertainties of working with conventional liquidity providers. By referring their respective broker-dealer clients to FTPrime, platform vendors can confidently offer them true access to interbank prices and spreads. FTPrime's aggregated incoming spreads are near zero, and any markups would be shared with the referring platform provider. Vendors can even offer their platforms directly to individual traders, referring them to FTPrime for accounts, expanding their market audience far beyond the customer base of just one broker-dealer.
SOCIAL TRADING COMMUNITIES such as Tradency or myFXbook and the strategy providers who use them can continue earning revenue on the future trades of community members by referring them to FTPrime, instead of earning revenue solely from renting or selling a strategy.
FTPrime is the newest product venture of Forex Technologies, Inc., a team of experts in Forex risk management, business development, and trading technology. Forex Technologies was founded in 2011 by veterans of Forex risk management, trading platform development, and software design. The Forex Technologies team has provided software to Forex broker-dealers since the 1990s.