Tier1FX, the STP-DMA agency model broker regulated by the Malta Financial Services Authority, is pleased to announce that KPMG in Malta has been engaged to review its offering in FX and CFDs. Having examined its trading execution system and tested a representative sample of transactions in 2015, the resultant report has confirmed that these trades were executed on a Straight-Through-Processing (STP) basis.
The report provided by KPMG to the Company’s Board of Directors confirmed that, on the basis of the sample of trades analysed, Tier1FX employed exclusively an agency business model and did not act as principal on any trades placed on its platform and executed by its liquidity providers,
Tier1FX STP accounts are designed for clients seeking Direct Market Access (DMA) by trading on best in class liquidity sources from top tier banks, guaranteeing a non B-Book execution. With this offering, clients obtain the best FX rates available from top FX banks aggregated to Tier1FX’s liquidity pool in every trading transaction and with no dealer intervention; clients can either trade on raw market spreads plus volume-based commissions or trade on the same DMA liquidity with an all-inclusive spread.
Commenting on the announcement, Albert Galera, COO at Tier1FX, said: “We are proud to have proved that we are a trusted STP provider to our clients; this is unique. We are, as far as we know, the first broker to undertake an external review of its trading execution process.”
“Many brokers, claiming to be STP/DMA/NDD, are running behind the scenes a hybrid model of STP and Market Maker execution, not passing all trades directly on to liquidity providers but rather holding them on their B-Book. In fact, it is common to see brokers claiming to be STP, yet they are forwarding their clients’ orders to other market maker brokers, keeping a B-Book model and, in some cases, sharing a portion of the B-Book profit generated. Technically speaking, they are STP brokers as they don’t take the risk directly, but the execution is not STP as they send the flow to other brokers who run the book for them. In actual fact, it doesn’t matter who runs the B-Book: if the broker’s flow is under a dealing desk control there will always be a conflict of interest between the broker and the client.”
“At Tier1FX, every single order is directly Straight-Through-Processed to our top FX banks’ liquidity pool, with no intervention. Our clients benefit from our agency model full value chain, with competitive and transparent pricing, deep liquidity and fast pure STP trading execution.”
Other accounting, audit and professional services firms such as Deloitte have been used by other brokers for verifying performance, Deloitte is used by CySEC broker EXNESS to audit their financial results and key performance metrics, open 3rd party verification have been excellent trust building methods for brokers to become more transparent to their clients globally.
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