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Dealing directly with Liquidity providers

  • #1
  • First Post: Mar 20, 2015 4:33am Mar 20, 2015 4:33am
Hello,
Does anyone have any experience in dealing with Liquidity providers directly ? As I understand by doing this I'll have good benefits such as lower spreads , less slippage and faster execution but I'm wondering if me as individual can do that ? Like do they have trading platforms like the retail brokers ? What are the minimum requirements to do so ?
  • #2
  • Mar 20, 2015 7:45am Mar 20, 2015 7:45am
If you are asking here, then you certainly can't ​
  • #3
  • Mar 20, 2015 7:48am Mar 20, 2015 7:48am
Quoting feline207
If you are asking here, then you certainly can't ​
Forgot to update the thread . I've found a result : Saxo Bank . It has it's own platform and you can use MT4 too . It's far more trusted than retail brokers . The problem is it has a high spread ~ 2 on EUR/USD but I think there will be no more slippage since you are dealing directly with the source of the liquidity
  • #4
  • Mar 20, 2015 7:55am Mar 20, 2015 7:55am
Quoting hals12
{quote} Forgot to update the thread . I've found a result : Saxo Bank . It has it's own platform and you can use MT4 too . It's far more trusted than retail brokers . The problem is it has a high spread ~ 2 on EUR/USD but I think there will be no more slippage since you are dealing directly with the source of the liquidity
Saxo's private casino. You really dont need them. I doubt that you are even close to the trading sizes that will cause noticeable slip. You find a trusted retail broker, that you can withdraw your eventual profits with the highest degree of success and they dont manipulate the feed very hard, there are many of the kind. Slippage is not your obstacle to trading success, nor will be the 1 pip spread+comission costs (i presume you are not doing hft on mt4 ). My 3 cents.
  • #5
  • Mar 20, 2015 8:43am Mar 20, 2015 8:43am
Quoting feline207
{quote} Saxo's private casino. You really dont need them. I doubt that you are even close to the trading sizes that will cause noticeable slip. You find a trusted retail broker, that you can withdraw your eventual profits with the highest degree of success and they dont manipulate the feed very hard, there are many of the kind. Slippage is not your obstacle to trading success, nor will be the 1 pip spread+comission costs (i presume you are not doing hft on mt4 ). My 3 cents.
Yes I'm not trading with 1000 lots but there's a big issue of finding a real trusted broker . Some are MM while they claim they aren't also some will cause issues upon withdrawing money , some go bankrupt (Alpari UK for example) . I doubt that you will find %100 legit broker
  • #6
  • Mar 20, 2015 10:29am Mar 20, 2015 10:29am
We can get into many arguments regarding providers, lotsizes, then the market and trading in general, but it is not related to the thread. My personal advice for you is to try for yourself and also diversify. Put small cash into one broker to trade live with them and get a feel of how they behave, then you can deposit more. But if you are going to deal with very large ammounts, which i doubt, then it is better to spread them between more brokers. In general, any advice that you get on an internet forum probably wont help you very much.
  • #7
  • Mar 20, 2015 11:38pm Mar 20, 2015 11:38pm
Quoting hals12
{quote} Forgot to update the thread . I've found a result : Saxo Bank . It has it's own platform and you can use MT4 too . It's far more trusted than retail brokers . The problem is it has a high spread ~ 2 on EUR/USD but I think there will be no more slippage since you are dealing directly with the source of the liquidity
Saxo Bank is just a retail broker with a fancy name; it's hardly a liquidity "source" in the same category as maybe UBS, Barclays, HSBC and the like.

Quoting feline207
Slippage is not your obstacle to trading success, nor will be the 1 pip spread+comission costs (i presume you are not doing hft on mt4 ). My 3 cents.
Amen, brother.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #8
  • Mar 21, 2015 2:58am Mar 21, 2015 2:58am
Quoting hals12
Hello, Does anyone have any experience in dealing with Liquidity providers directly ? As I understand by doing this I'll have good benefits such as lower spreads , less slippage and faster execution but I'm wondering if me as individual can do that ? Like do they have trading platforms like the retail brokers ? What are the minimum requirements to do so ?
Liquidity providers have minimum $20 to $50m equity requirements for clients on their prime brokerage business.

Some do have scaled down version of their platforms to cater to retail clients (CitiFX or Barclays BARX among others) but neither spreads, commissions or execution of orders are any better than average.
  • #9
  • Mar 21, 2015 1:17pm Mar 21, 2015 1:17pm
Quoting hals12
Hello, Does anyone have any experience in dealing with Liquidity providers directly ? As I understand by doing this I'll have good benefits such as lower spreads , less slippage and faster execution but I'm wondering if me as individual can do that ? Like do they have trading platforms like the retail brokers ? What are the minimum requirements to do so ?
Fx is interbank market and not a local casino. LPs make profit on commissions and to make a deal between you and them reasonable, your trading volume should be at least 1000 lots monthly, I guess. For comparison, my monthly trading volume with Tickmill is about 40 lots, what is incomparably lower.
Commissions from retail traders are too low, that's why they aggregated through retail brokerages to build somehow the connection between us and fx market. There are pretty good retail brokers around just dig deeper a bit and check for feedback on forums.
Good luck.
  • #10
  • Apr 2, 2020 2:23am Apr 2, 2020 2:23am
I'm currently using Doo Clearing as my liquidity provider https://www.dooclearing.co.uk/.
I trust them because they are FCA regulated liquidity provider and using Barclay Bank as their security banking.
In terms of access and distribution, they have FIX API 4.4, MT4 Bridge and MT5 Gateway to get full distribution capacity though.
Spoken to their 24/7 support service, they are very friendly and helpful.
Perhaps, They even set me up as a broker within 1 hour. I'm very impressed with them.
I hope this helps you out.
  • #11
  • Last Post: Jun 6, 2021 9:18pm Jun 6, 2021 9:18pm
Quoting Mark2020
I'm currently using Doo Clearing as my liquidity provider https://www.dooclearing.co.uk/. I trust them because they are FCA regulated liquidity provider and using Barclay Bank as their security banking. In terms of access and distribution, they have FIX API 4.4, MT4 Bridge and MT5 Gateway to get full distribution capacity though. Spoken to their 24/7 support service, they are very friendly and helpful. Perhaps, They even set me up as a broker within 1 hour. I'm very impressed with them. I hope this helps you out.
Hello Mark.
Does this mean we can trade directly with Doo clearing ?
What are the charges ? Minimum volume commitment if any ?
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