Multi-regulated retail brokerage iFOREX has ventured into the prime-of-prime space by offering a new product called ‘iFOREXPRIME’. It will leverage its existing pool of FX and CFDs liquidity and open it up to institutional businesses.
iFOREXPRIME will launch in partnership with the New York-based technology provider Forex Development Corporation (FDC), which is headed by Mitch Eaglstein.
iFOREX’s PoP product is intended for a client segment that includes mid-sized funds, retail brokers and professional traders, offering prime brokerage services which are no longer being provided by the larger firms following the Swiss National Bank induced crisis of January 2015.
In addition, the increase in banking regulation, which mandates increased minimum levels of capital and increases in reporting expenses, has resulted in a lot of banks leaving the prime broking space.
The new firm is expected to provide its services to clients who do not have an FX prime broker, or that need additional credit lines to access either liquidity or execution services. The exit of legacy players in the prime brokerage space will allow new offerings, such as iFOREXPRIME, to rapidly gain customers and fill the void.
Commenting on the deal, Peg Reed, Chief Operating Officer at Forex Development Corporation (FDC), said in an exclusive statement to Finance Magnates: “iFOREX has engaged the services of Forex Development Corporation (“FDC”) to transform and distribute its prime business for B2B partners under its new iFOREXPRIME brand. FDC has extensive experience in developing a complete solution from strategy to technology implementation and beyond for FX businesses.”
“iFOREXPRIME has a robust trading platform with a comprehensive back office system and a state of the art, fully integrated, CRM system that enables the broker to build every aspect of its business, from lead generation, client acquisition, trading life cycle and regulatory compliance,” she concluded.
FDC’s B2B offerings allow brokers of all sizes to license its technology to develop prime brokerage products that offer MetaTrader 4 integration, real-time analytics, introducing broker (IB) structures, as well as customer service and individualized platform solutions.