What to look for in a Liquidity Provider like Doo Clearing?

According to the latest of the triennial studies done by the Bank of International Settlements (BIS), today, the daily turnover in forex is slightly above $5 trillion, which makes the forex market the most liquid market of all financial markets in the world.

As you can tell opting for the right liquidity provider is vital for any brokerage or fund managers. 

So, what are the issues that confront market participators when it comes to the selection of liquidity providers? And why Doo Clearing is a trustworthy LP which can act as a strong partner for your brokerage business? 

Cost

Pricing – competitive rates is a key ingredient for brokerage operations. An LP’s price offering must include competitive spreads as well as low commissions. 

The advantage of having an LP like Doo Clearing as a mediator is our strong bargaining power with upper stream liquidity providers, and the technology to guarded the entire execution constantly. 

Value for Money

However, the value for money that an LP created is not judged solely by its low spreads. The revaluation should not be limited and immediate. In fact, many other factors should take into consideration, and they will seriously affect the economic efficiency of what you’re paying for. 

The Authenticity of the LP

LPs must be regulated. Regulators stipulate mandatory capital requirements as well as policies and procedures guiding the operations of the LP. 

Doo Clearing, a UK-based Spot Forex and CFDs liquidity provider, has received regulatory approval from the FCA (Financial Conduct Authority) with FRN (Firm Regulation Number): 833414.

Why FCA regulation can protect investors? 

The FCA has significant powers, including the power to regulate conduct related to the marketing of financial products. It can specify minimum standards and to place requirements on products. It has the power to investigate organizations and individuals. Also, the FCA can ban financial products for up to a year while considering an indefinite ban; it will have the power to instruct firms to immediately retract or modify promotions which it finds to be misleading and to publish such decisions. 

Liquidity Aggregation

Aggregated Liquidity is more competitive

Liquidity Aggregation affects your profitability for a great deal. It allows traders to deal with only one company, and have their order automatically spread over multiple price feeds, therefore getting the best price possible while keeping the prices stable and as low as possible. 

Doo Clearing aggregate prices across numbers of tier one bank liquidity providers, for a fully aggregated market depth. To create a more competitive environment for global market participators. Doo Clearing is capable to undertake High-Net-Worth Individuals with liquid assets up to 5,000,000 USD. 

Technology

Technology can become a competitive advantage in the way you do your business. It will seriously advance your trading performance. 

Ultra-Low-Latency

Delay is not acceptable as clients place their bids and offers. Liquidity moves with the market, and when the market moves, so do market prices. 

Make sure the LP you choose is connected to the latest technology. You don’t want to be left out when the market moves.

Doo Clearing is partnered by a global leading financial services provider – Doo Holding Group. By teaming up with solid IT infrastructure, Doo Clearing strives to complete orders as close to a buy sell stop as possible, to assist in good execution, dependent on market conditions.    

Access & Distribution 

Access and Distribution is also an important factor since it shows the level of strength of the LP and upgrades your business efficiency. 

Doo Holding Group supports more than 104 liquidity providers and futures companies, accessible to almost every major liquidity provider in the market. Brokers should be able to get the software implemented within half an hour, such as FIX API 4.4, MT4 Bridge and MT5 Gateway, to get full distribution capacity. 

Reliable 

Reliability plays a big part when evaluating the long-term cost of an LP. In global markets, any mistake can cost. 

Doo Clearing’s high-performance liquidity tools maintain stability and avoid downtime or spikes almost entirely. 

Risk Management

Any FX business today without adequate risk management will fade tomorrow. The market is moving fast and so are the demands for brokerages.

The advanced risk management tool ensures accuracy and gives you control over huge amounts of simultaneous trades and maximize your revenue and profit. 

Doo Clearing liquidity comes with a robust risk management platform based on a pre-configured strategy to minimize exposure; the control is over to you. 

Reporting and Health Monitoring

The LP should be able to provide the broker with an automated and robust system of reporting to enable them to comply with regulatory requirements. The health indicators in real-time monitoring your clearing system, customer connectivity, trade flow, and execution quality. 

Transparency

Before you opt into a new LP, always remember to check the clarity in the way they conduct business. They should give you an insight on how pricing models are calculated and careful analysis and reporting of their risk management process. 

At Doo Clearing we consider transparency as the absolute quality for LP. We earn clients’ and regulators’ trust by being as transparent as we can. Within the guidelines of privacy, as well as the law.

Compliance

The financial service without standard compliance can hardly be seen as trustworthy. The role of compliance describes the ability to act according to an order, set of rules or requests. 

As mentioned earlier, Doo Clearing Limited is authorized and regulated by the FCA (FRN: 833414) to maintain the strict compliance standard. 

Doo Clearing is a partner of Doo Holding Group which was officially incorporated in Hong Kong since 2014, a financial services provider with cutting-edge technology and solutions. Doo Holding Group is also undertaken Hong Kong Money Service Operators License; and Trust or Company Service Provider License. 

Dedicated Support

Support is as important as the product itself. Even when you have a great product, but if you’re not using it properly or not using it to its maximum potential, it means your value for money is under maximized. 

Doo Clearing acknowledged this problem, so we take support in great consideration. Doo Clearing supports you around the clock, ready to answer any questions, solve any problem you might be facing with. 

Liquidity Package

For all of the above reasons, it is always advisable to opt for a complete liquidity package, one that offers you greater variety and gives you full control, while keeping you completely protected, supported and cost-worthy. 

About Doo Clearing 

Doo Clearing limited a UK-based Spot Forex and CFDs liquidity provider authorized and regulated by the FCA (FRN: 833414) to arrange and deal in Rolling Spot FX and Contracts for Difference (CFDs) with Eligible counterparties and professional clients.

Doo Clearing undertakes many functions such as liquidity access, quotation aggregation, liquidity distribution, clearing account, risk management, reporting, and system health-level checking. 

For more information, please contact our support team which is composed of experts.  

For EU 

Phone: +44 207 1128722 

Email: [email protected]

Website: www.dooclearing.co.uk

For Overseas 

Phone: +852 9561 2013

Email:  [email protected] 

Website: www.dooclearing.com