MIG explains its execution model, no real news there
MIG Bank has just launched a new campaign aimed at explaining its execution model. Basically they claim to be using similar to FXCM's agency model - where banks 'compete' for prices and clients only execute with them. I don't have any intimate knowledge of how exactly it works at MIG but I can safely say that no broker whatsoever passes 100% of deals to Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term providers and I mean NONE. Most brokers put large or profitable traders on STP servers while dealing against smaller or less profitable clients. And if you think of it this model makes sense as you can't really pass small deals to banks (MIG lists almost 20 of them) as they naturally don't really deal with small clients. Good execution for smaller trades for now can only happen through a market maker but this obviously creates other types of problems.
However MIG claims full transparency which is what set me off - although they do list their Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term there's not much transparency beyond that. We do not see any hard numbers of execution or spreads amid the recent transparency trend sweeping the industry. My understanding is that MIG doesn't disclose whether your deal was executed with any of its LPs and with whom exactly. There's just this vague phrase which cannot help but make you think why is it there in the first place: "The prices obtained by us from our liquidity providers are 100% transparent and can be disclosed to you at anytime." The prices CAN be disclosed?
Bottom line, until MIG really shows exactly with whom the deal was executed and what the B-book is, there's no transparency here and it is certainly not a Revolution.
MIG Bank, the worlds first Forex broker to become a Swiss bank, is again at the forefront of innovation by offering a revolutionary new Fully Transparent Dealing model.
In order to ensure MIG BANK's clients get the highest possible liquidity and best market prices, MIG BANK works with a pool of liquidity providers, consisting of major prime banks. These liquidity providers compete to offer MIG BANK their best prices for the clients order execution.
MIG BANK explains the transparency model further, "The prices we obtain from our liquidity providers are 100% transparent and can be disclosed to our clients at anytime. Our advanced IT infrastructure and price aggregator system allow us to constantly receive quotes from all of our liquidity providers, instantaneously analyze them and identify the best price available to fill our client orders."
MIG BANK goes onto say, "We then add our mark-up and execute our clients orders at the best market price in a matter of milliseconds with no dealer or human involvement."
MIG Bank has just launched a new campaign aimed at explaining its execution model. Basically they claim to be using similar to FXCM's agency model - where banks 'compete' for prices and clients only execute with them. I don't have any intimate knowledge of how exactly it works at MIG but I can safely say that no broker whatsoever passes 100% of deals to Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term providers and I mean NONE. Most brokers put large or profitable traders on STP servers while dealing against smaller or less profitable clients. And if you think of it this model makes sense as you can't really pass small deals to banks (MIG lists almost 20 of them) as they naturally don't really deal with small clients. Good execution for smaller trades for now can only happen through a market maker but this obviously creates other types of problems.
However MIG claims full transparency which is what set me off - although they do list their Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term there's not much transparency beyond that. We do not see any hard numbers of execution or spreads amid the recent transparency trend sweeping the industry. My understanding is that MIG doesn't disclose whether your deal was executed with any of its LPs and with whom exactly. There's just this vague phrase which cannot help but make you think why is it there in the first place: "The prices obtained by us from our liquidity providers are 100% transparent and can be disclosed to you at anytime." The prices CAN be disclosed?
Bottom line, until MIG really shows exactly with whom the deal was executed and what the B-book is, there's no transparency here and it is certainly not a Revolution.
MIG Bank, the worlds first Forex broker to become a Swiss bank, is again at the forefront of innovation by offering a revolutionary new Fully Transparent Dealing model.
In order to ensure MIG BANK's clients get the highest possible liquidity and best market prices, MIG BANK works with a pool of liquidity providers, consisting of major prime banks. These liquidity providers compete to offer MIG BANK their best prices for the clients order execution.
MIG BANK explains the transparency model further, "The prices we obtain from our liquidity providers are 100% transparent and can be disclosed to our clients at anytime. Our advanced IT infrastructure and price aggregator system allow us to constantly receive quotes from all of our liquidity providers, instantaneously analyze them and identify the best price available to fill our client orders."
MIG BANK goes onto say, "We then add our mark-up and execute our clients orders at the best market price in a matter of milliseconds with no dealer or human involvement."