FX Transparency, the largest independent provider of FX transaction cost analysis (TCA) to the institutional sector, today announced a partnership with oneZero Financial Systems, a provider of institutional trade routing software, bringing its solution to the retail forex broker industry.
Brokers appeal to traders with the low spreads they offer but skeptics might question if the prices they see on the screen are different from what they actually receive. The new rTCA program, a version of FX Transparency’s flagship transaction cost analysis reporting customized to fit the retail currency market, can now offer independent, statistical proof demonstrating to clients exactly how much their broker’s executions cost them.
“The retail FX trading community is littered with claims of tight bid/ask spreads, but no independent source has actually measured those claims until now. rTCA bridges the gap between retail FX conventions, and institutional analytics and best practices,” said James McGeehan, CEO of FX Transparency. “Our history and success creating exacting analyses of FX trading costs for the world’s most demanding asset managers will now help top-tier retail brokers fight false claims and win more business.”
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Retail forex brokers can qualify to be listed on the rTCA program site by meeting certain execution quality standards. Brokers must submit their clients’ trades, which are then measured against FX Transparency’s independent database of mid-market rates. Based on the actual execution prices received by their clients, Forex Brokers can receive the gold, silver or bronze execution quality standard. Brokers must submit a new block of trades every six months to remain current.
“This is a way for the serious retail brokers to really separate themselves from the competition with the credibility that comes from being measured by a truly independent source,” said Stephen Leahy, Head of Business Development at oneZero Financial Systems.
“Increased competition for new business in the retail FX space, as well as rising regulatory scrutiny surrounding execution quality are driving a market need for independent, third-party measurement of trading costs. We know FX TCA, and oneZero has the domain expertise in the retail currency market, so it’s a very complementary fit,” added McGeehan.