A forex broker’s risk management largely depends on the correct setting of trader groups and the distribution of the transaction flow between A/B books. In other words, client transactions are transferred to the liquidity provider, or processed by the broker himself.
The MT5 bridge plugin is used to automate liquidity management and fulfil the following tasks:
- transmit the quote flow from the liquidity provider to the client’s terminal without a broker’s participation;
- send the client’s market and pending orders for execution to the liquidity provider;
- using the bridge plugin, you can set up groups of traders and liquidity aggregation rules between them.
Routing settings for all symbols are managed using one simple tool – the МТ5 bridge.
Customer loyalty and company safety depend on the correct operation of the program.
Settings that allow the broker to conduct risk management:
- automatic switching between A/B books depending on market volatility;
- consolidation and distribution of volumes, automatic swap renewal;
- flexible group settings with the ability to redirect between A/B books;
- automatic detection and notification of incorrect group settings;
- flexible rule-setting for different groups: markups, slippages and delays.
These functions optimize risks and increase a company’s profitability.
Additional software features
- option to increase the number of liquidity providers, incl. to work with cryptocurrencies;
- advanced aggregation – MT5 bridge allows to use complex hedging strategies by using multipliers;
- built-in real-time server and bridge health monitoring system integrated with technical support service.
Tips for choosing a liquidity aggregator
There are several providers in the forex broker software market. In order to choose the right option, conduct a comparative analysis of the software quality:
- use the test period to assess the speed of the liquidity bridge;
- check compatibility with third party protocols used by your company;
- evaluate the additional functionality, whether it will be useful;
- look at the pricing of multiple providers to see if your volumes meet the minimum package costs. Check for hidden fees.