Boston Technologies, the company behind the first MT4 bridge, has now launched its own FX Prime Brokerage – BT Prime.
It seems that BT is looking for additional streams and that it believes that its institutional contacts can help its clients get better liquidity. In effect, BT is creating a liquidity eco-system for small-medium MT4 brokerages. Why small? Because large brokerages like FXCM have better contacts than BT. If this is the case, I don’t see how BT is different from dozens of other PB’s out there.
It seems that the Prime Brokerage is active yet as there are several ‘soon’ sections on the website but you can tell that BT is serious. I have reservations regarding some of the content – such as “Our first customer started with $50k and now it makes $200k a month” or “no requotes or rejections” which I think is not something anyone should write on its website but other than that the site is pretty informative and straightforward.
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At this point, BT Prime’s customers are only price takes – that is STP and BT promise that soon they will be able to become price givers as well – that is ECN. Amongst its LPs BT mentions Citi, Deutsche Bank, Nomura and surprisingly Currenex which is another technology provider just like BT.
BT claims not to charge any commission at all and its business model here is probably similar to it’s bridge business model – spread mark-up.
One last issue is that I don’t think this Prime Brokerage is regulated at this point, at least there is no mentioning on the website and it would be interesting to understand the legal set-up behind this ambitious start-up.