Speakers Corner Stop attacking B Book brokerages...it’s boring! ANONYMOUS
If they are looking to go into the murky waters of discussing the credibility of one brand compared to another based solely upon this, then I would suggest they are going down a very short term solution which will never get them the mass appeal they crave. Looking at the brokerage industry, it is only a very small vocal group of retail brokerages that operate a 100% STP operation. I am guessing most of you who read this are involved in FX in some way, or the financial industry. We can all come to a fair assumption that nothing in the financial industry is clean.If you have ever had the misfortune of dealing with banks like I have for FX and other products, they make even the greyest of FX brands look opaque. Take a look at the huge fines that they receive for mis-selling along with other various crimes and misdemeanors. Based upon my observations, the overwhelming majority of brokerages that claim to operate an STP model, either have a rebate deal with their liquidity provider, or have an offshore entity where they are just like the rest of us internalising. So if they are open to it, let’s take a look at how they make their money and we can discuss transparency. The past few months I have become increasingly bored of a tedious debate that has arisen forming the simplistic narrative of ‘A book good B Book bad’. I have seen this come from the FX media (who should know better) and some brokerages focusing their marketing campaign as a stick to beat others within the industry. Let me begin by giving a little bit of my background, I have been a CEO at the same brand for the past 6 years, where we have gone from a start up to a mature brand, making very respectable revenues along the way and establishing our name. We have always adhered to following all regulations we are under, and have always prided ourselves on giving our clients a great service. We could not have grown without having a B Book license. Moreover, I think it’s fair to say that there is a huge difference between legitimate internalising and bucket shops. The two are often conflated as the same, which they are not. I often find it is a red flag in anyone’s understanding of the industry, or they are trying to get a needless cheap shot in when they claim they are one and the same.
GAME CHANGERS Issue #32
Moreover, on a daily basis I am pitched by technology providers who tell me their cutting edge
