FX Aggregator: complex software system explained in simple words

fxopen ecn agg

Forex aggregators provide software solution for liquidity aggregation from various sources within a single view. The aggregators support various combination of order types, currencies and tiered pricing. Forex brokers nowadays seem very interested in acquiring the services of Forex aggregators in order to satisfy the needs for lightning fast execution and effective order routing as per specific rules.

How Does an Aggregator Work?

A broker connects all the liquidity provider accounts to the aggregator through an API with each account carrying a special portal in the aggregator. This arrangement allows a broker reduce the spreads and enhance its liquidity due to high volumes offered by various liquidity providers.

An aggregator compares the demand from a client and supply from the liquidity providers and makes sure that the client’s request is processed at the best available price. The aggregators give all the traders anonymous and equal access to the liquidity providers thus optimizing their market access.

Advantages of FX Aggregators

A Forex aggregator offers following benefits to its clients:

  • An access to the aggregator via a smart application commonly known as Client AdminEye
  • A lot of customization, some Forex aggregators offer even up to 100 different settings to meet the specific needs of their clients
  • The state of the art reporting system, the aggregators provide detailed information on the speed, execution and quality of each transaction.
  • All the Take Profit, Stop Loss and pending orders are placed in the market depth, hence making sure the best possible execution with minimal slippage.
  • The aggregators may provide even detailed recordings and screenshots for each and every transaction which is very helpful in case a broker enters a dispute with any of its clients.
  • The aggregators mostly use applications built in C++ which ensures high performance.

Famous FX Aggregators

There are numerous companies offering Forex aggregation services, a few of them include Soft-FX Aggregator, Thomson Reuters Dealing Aggregator, Quotix, FlexTrade, Integral, Currenex, EBS Direct, MarketFactory, FirstDerivatives DeltaFlow, DealHub and TraderTools.

FXOpen Acquires Soft-FX Liquidity Aggregator

Leading ECN broker FXOpen acquired the liquidity aggregation service offered by the Soft-FX. The new service enables FXOpen offer:

  • Lightning fast trade execution, within milliseconds
  • Single view access to the depth of market liquidity from various financial institutions including cryptocurrency exchanges
  • Execution of orders at the best available quotes
  • Customization of execution for every financial instrument
  • Detailed reporting and recording about each transaction with the help of next-generation reporting software
  • Execution of trades with minimal slippage even in high volatile markets

Conclusion

In a highly competitive Forex industry, the use of liquidity aggregators is becoming more and more common with the passage of time as traders like to trade with brokers offering low spreads and lightning fast execution of trades with minimal slippage. Realizing this need, FXOpen acquired one of the best liquidity aggregators that consequently boosted services of the ECN broker considerably.

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