Retail brokers and others in the multi-asset trading world were quick to adopt the powerful MetaTrader 4 platform. And, since 2010, the new MetaTrader 5 also has come into increasingly widespread use. This has created a continuing demand for liquidity bridge software as an intermediary between trading systems and sources of pricing/liquidity.
The latter, also called “market makers,” are committed to providing a market for a given financial instrument or commodity kept in inventory, ensuring that there always is a bid and ask price for that asset. In this way, the market maker guarantees “liquidity”—the ability to buy and sell at any time—for the asset. For brokers, the usual choice is one or more multi-asset market makers.
Liquidity Bridge Advantages
For retail brokers and others using MT4 or MT5, installation of a liquidity bridge software and the resulting direct market access offer substantial, continuing advantages. In addition to providing liquidity, they can be used to supply a price feed or simply to send a trade out of the system.
- For brokers, a bridge strengthens a product offering by enabling the broker to offer different groups of clients fixed bid-ask spreads or variable spreads. They are able to do this because they can customize the configuration of the aggregated price feed.
- Liquidity providers are eager to supply a broker with prices, so those prices from multiple sources can be aggregated into a single feed. The result is competition among liquidity providers, which results delivers to the broker’s clients the most competitive offer for a trade—that is, a superior experience for the end-user of the bridge.
- Bridge software includes tools that enhance a broker’s risk-management system by making available choices for routing orders, diverse exposure, and improved reporting.
DGM Tech Solutions brings significant experience to the choice of the best fit between a brokerage firm and a bridge provider. And our comprehensive or package approach can include MT4 and MT5 solutions as well as the range of plugins for systems. Explore our website to see our products and systems and the solutions that they support.
Then call us to arrange a consultation and demonstration.
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