How does best price policy work?

Author: Baiana Kashaeva

Best price policy is something that every broker talks about and wants to provide. Best price policy includes, naturally, best pricing for the trader and it is usually provided at high speed, all thanks to the right software that enables the whole process.

How can we reach the best price?

Best price is achieved through aggregation. Most bridge solutions would provide multiple types of aggregation. At TFB, our Trade Processor (TP) bridge offers six different types: singlebook, multibook, multibook except close, net except close, multibook proportional, and multibook proportional except close.

The term best price is subjective to a degree. What is best for some, will not be for others. Having multiple aggregation options ensures that brokers stay flexible and can have a custom approach to different customers.

Additionally, best pricing can be achieved by executing the orders through several providers. So, if a trader places an order for 1 lot, it can be spread among multiple providers to achieve best pricing for the whole lot. Once the order is fully executed, the MetaTrader platform will put the pricing and volumes from all providers together and will show the volume-weighted average price.

The perks of using Trade Processor as your liquidity bridge

Trade Processor offers all standard functionality of a bridging solution that brokers can expect in a modern bridge. In addition to that, the aggregation pools are on the brokers’ site which unlocks several benefits:

• more control for the brokers
• faster speed since brokers can choose how close the elements of the infrastructure are located to one another
• more transparency to the process as brokers can access settings and configuration (including configuring the pools and assigning traders’ accounts to those pools)
• no discrepancy issues due to additional aggregation types built into TP

Do you have any questions? Please feel free to email us at sales@t4b.com for more.