Tuesday, July 10, 2012

Yadix STP – The Importance of a Deep Liquidity Pool


The management team at Yadix understand the importance of providing a stable a reliable forex trading platform for its retail forex clients, partners and professional traders, and as such have worked hard to source more than 15 tier one forex liquidity providers to ensure competitive pricing and excellent execution for its community of forex traders.

When trading with an STP forex broker, it’s important that the broker has multiple liquidity providers that can support the trading environment and provide consistent and dependable order execution. Should the broker be supported by one or two liquidity providers, there is a high likelihood that the pricing feed will not be stable with large range of spreads especially during times of volatility in the forex markets and even at times of thin liquidity. These critical elements of STP can then cause issues when trading.

At Yadix, the pool of liquidity is provided by 15 top liquidity providers who are all widely respected banks and financial organisations, that include Goldman Sachs, JP Morgan, Commerzbank, Credit Suisse, BAML(Bank of America Merrill Lynch), Citibank, RBS(Royal Bank of Scotland), BNP Paribas, Nomura and more. These providers compete for the forex trading volumes submitted through the Yadix trading platforms. This competition means that clients will always benefit from the lowest pricing available, reliable forex executions and no re-quotes.

Clients, who trade and execute larger forex lots per orderexecution can rest assured that their orders will be executed without issue as the pool of liquidity can easily handle even the largest order sizes. Other brokers without such a range of providers may have difficulties to execute such larger order sizes that negatively affect clients’ forex trading experience.

By having such a strong and dependable liquidity pool, Yadix ensures that each forex order submitted through the Yadix trading platforms are executed anonymously to the liquidity providers. This is beneficial for all users of automated trading tools (Expert Advisors) or any other profitable trading strategies. Anonymous trading is a requirement that is growing in popularity as many clients that use Expert Advisors or other strategies have faced issues with market makers and other brokers claiming to be STP. This is because market makers make money when clients lose and lose money when clients make profits trading forex, and depending on just how profitable the strategy is, the broker may even exclude or manipulate the order execution to ensure profitability.

At Yadix, all strategies and Expert Advisors are welcome to make the most of STP forex trading with a deep liquidity pool and no re-quotes. 

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