The relationship you build with your liquidity provider is based on trust, understanding, communication and the view that it will last for a long, long time.
Taking that into consideration, the idea of changing your liquidity provider seems daunting to say the least. Why would exit the safety of a relationship that works?
Because when it comes to your business, you should always seek the best product and service on the market. There is no place for settling and staying with a liquidity provider that doesn’t adapt to the industry needs.
Let’s explore 5 reasons you should be looking at when contemplating about switching your liquidity provider.
1. Dedicated Support
Support is as important as the service/product itself. Think of it as buying a new supercar but nobody from the car dealership takes the time to explain what each button does, its features and functionalities or how to get the most out of it.
What you end up with is brilliant product you’re either not using properly or not using to its maximum potential. Same goes for your liquidity provider.
Apart from the products, a liquidity provider should be able to provide you with support around the clock and be ready to answer any question and solve any problem you might be dealing with.
From account managers that can tap into more personalized problems to general support for admin, daily challenges, it’s important to know that you have options beyond the obvious when it comes to your liquidity provider.
2. Risk Management
Who said a liquidity provider should only…provide liquidity? The market is moving fast and so are the demands for brokerages. Risk management is becoming one of the most sought for services for new and experienced brokerages alike as a lot can be achieved by using it.
From book and account management, to avoiding the cost and hustle of setting up and running an expensive dealing department there’s a lot to like about risk management services. You cut down on your operational costs and at the same time you reduce your risk and exposure.
Sourcing liquidity and doing business with liquidity providers can at times be marked by a lack of openness. This is not something you should be forced to endure.
New providers are aware of the need for more clarity in the way they conduct business, giving you insight on how pricing models are calculated and step by step analysis and reporting of the risk management process.
4. Range of Markets
Currencies like the dollar (USD), the euro (EUR), and the English pound (GBP), are quite common and more of an expectation rather than a unique feature. Markets though, are constantly expanding and the range of currencies and instruments keeps expanding and developing.
When looking at your liquidity provider and their offerings, make sure they are not limiting you to the majors.
Options like exotic currencies of the likes of renminbi (CNY), the peso (PHP) and the forint (HUF), cryptocurrencies, indices or even commodities like crude oil and gold can expand the volume of your transactions and business.
We live in a digital world and there’s no reason to deny it. Our life is becoming more and more dependent on the use of technology and so is the world of business. When it comes to your liquidity provider, technology is not merely the avenue or the tool used to utilize their product/services.
Technology can become a competitive advantage, an asset in the way you do business. The trading platform your provider uses, their reporting system, their onboarding and integration methods – everything falls under the scope of technology and it’s essential for you to understand the different ways it can affect your business.
The market is flooding with options to choose from when it comes to liquidity providers. INFLYX is not merely one of those options but a young, up and coming business that ticks the aforementioned points. Here’s some more information about INFLX.
INFLYX is a liquidity, risk management and white label solutions provider connected to Tier 1 liquidity. Their focus on transparency, detailed reporting and client-oriented services sets them apart from other providers.
INFLYX also takes pride in its tailored-made risk management solutions and its ability to manage and handle clients’ dealing desks. Their team’s diversity and varying experience allows them to take on a wide range of clients, from beginners to well established brokers.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.