Cysec Models For Forex
1. Dealing Desk Forex broker / Authorized Market Maker
The CIF offers to their real customers quotes through their online platform.
Client orders are routed through the Dealing Desk and spreads are usually fixed. In this model the CIF makes many by either trading against its clients or via spreads.
2. Non-Dealing-Desk or ‘Straight through processing’Model (STP)
The non Dealing Desk broker is connected to banks in inter bank market and the banks forward their offers to the broker. Then the best buy and sell prices are offered to the customer through the platform and then the customer will decide if he wants to place the order or not. The broker will execute the order by taking in opposite position or on commission by giving a principal order to the bank. The customer and the banks have no knowledge of each other, they each deal always with the broker. The spreads are variable, because they depend on the bank spreads. The broker will get a commission.
3. Non Dealing Desk (NDD STP+ECN)
As well as allowing ‘straight through processing’ to the interbank market, the Non-Dealing-Desk Broker sends client orders to ECN where their client orders interact with other client orders. The spreads are variable, because they depend on the bank spreads. The broker will get a commission.
4. Dealing Desk and Non Dealing Desk-White Labelling Model
The client can access a Forex platform through a white label agent. The remuneration between white label providers and agents will vary order-by-order, firm-by-firm -it can be paid on a commission basis which is worked into the client spread or via rebates to the agent on a volume override basis. The client order is ultimately executed either by white label provider or sent/aggregated to interbank market.
5. Introducing Broker
An introducing broker will receive renumerations from brokers which vary between firms/orders. They get paid by commission from the client spread
or again via rebates to the agent on a volume override basis. The client order is ultimately executed either by white label provider or sent/aggregated to interbank market.
For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers – Michalaki, Pitsillidou & Co. LLC, at firstname.lastname@example.org .Tel. +357 99345000 – Fax +357 25 660097.