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Why should you use a Prime Broker...

  • Writer: Ronald van Rensburg
    Ronald van Rensburg
  • Apr 13, 2022
  • 1 min read

Updated: May 31, 2022


There are three main services that a prime broker provides to financial institutions such as hedge funds, prop traders and other brokerages. First would be access to FIX API connectivity, which provides a direct channel for orders to be sent through to the liquidity providers that the prime broker is linked to through any trading platform that supports FIX API. Together with order management and aggregation of those orders, insitutions can be confident that their orders will be executed quickly and efficiently together with full transparency. Additionally a prime broker provides access to its liquidity. If a financial institution needs to buy/sell an order of $500million of an instrument, the prime broker will ensure that the liquidity is available on the other end of the buy/sell order for a quick and efficient execution at the best price possible. Last, but not least, a prime broker provides the support for a start up brokerage in the form of technology as well as the liquidity required. Some prime brokers, but few, would even go the distance in taking on and managing the risk until the broker is profitable enough to take on its own risk to ensure longevitiy of the start up. Looking for prime services? Feel free to reach out to me. https://bit.ly/2ZR5syi #FCA #Regulated #Primebrokerage and #DirectMarketAccess #investment #investing #trading #fx #forex #cfds #finance #forexlifestyle



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