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Prime Broker model

Where partnership and technology come together

This page has been designed to explain our business model in depth. We believe that a Prime Broker model is the best way to deliver a high quality service and an efficient trading experience for our clients. 

We have built strong relationships with multiple banks who act as liquidity providers for us. In addition, we have a close working relationship with our prime broker who acts as an overall intermediary between us and other institutions.

Best Price Feeds from tier 1 and tier 2 banks

The advantage of our approach is that we can execute orders more efficiently and at a lower cost by being able to square trades at the best bid/ask prices that are available across all of our liquidity providers.  In practice, this means that we are able to pick the best bid/ask prices available and provide them to our own clients. Below is a detailed explanation of how the prime broker model works in practice:

• We deposit holding capital with our prime broker  for margin purposes and to clear all forthcoming trades between us, our liquidity providers and  our prime broker.
• We conduct trades with our liquidity providers in order to hedge our client positions or to put our clients’ orders directly through to our liquidity providers. This is how Straight Through Processing (STP) benefit our clients.
• All trades are confirmed and booked. This is done within 70 milliseconds on average.
• All our liquidity providers submit trade data and the necessary funding requirements to  our prime broker for clearance and settlement. We also submit trade records which must match trade records submitted by our liquidity providers. Our prime broker verifies and reconciles all trades and any mistakes are corrected as soon as feasibly possible. All profits/losses are settled at the end of each day.
• Having more liquidity providers allows us to obtain (and in turn offer our clients) the best bid / ask prices by accessing multiple tier-1 market-making banks directly and simultaneously. We are also able to bypass all other brokers and smaller, less-reliable intermediaries. Having strong relationships with numerous providers also allows us to offer automatic execution for all trades below USD5 million nominal value on MetaTrader 4 accounts. On Alpari Direct and Alpari Direct Pro all trades are executed automatically.

In summary, our Prime Broker model is an ultimate solution as it provides better execution, better hedging capabilities and access to more ample liquidity via the interbank market to institutional as well as individual clients. 

Strict balance sheet and regulatory requirements in addition to close scrutiny regarding suitability by the world’s major financial institutions give us strong credibility within the industry and with our clientele and business partners.