FX: Brokers cannot afford an identity crisis

The recent withdrawal of Stater Global Markets from the prime-of-prime broker market has underlined the need for providers to continue to prove their value to clients.

Aggregated pricing streams are preferable to single bank lines for most FX trading clients.

Non-bank price-makers have become more influential during the past few years and for most clients a prime-of-prime (PoP) broker is the only way to get access to this important liquidity source.

However, FX PoP brokerage is not an easy market to crack.

Stater Global Markets’ June 3 announcement confirming it was ceasing its PoP offering referred to the difficulties of competing with larger rivals, even for a business with a substantial client base and a strong management team.

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