Finding FX brokers that are credible and have fair margins should be a seamless process for every treasury team. But it’s easier said than done.

Bypassing vetting FX brokers isn’t an option either. Otherwise, you’re guaranteed hidden fees, conflicted interests, and a general lack of transparency that can severely impact corporate financial strategies and the bottom line. 

There has to be a way to fill the gap — and, luckily for you, there is.

At Just, we have dedicated our expertise in both corporate FX and technology to form a suite of software solutions that grant businesses total transparency and visibility to inform their financial operations. Here, we’ll delve into how exactly you can find trusted corporate FX brokers… and why a dedicated software solution is critical to achieving that goal.

Suggested reading: Have you moved past a single source of liquidity yet? Find out why you should in our blog Should You Diversify Corporate FX Liquidity Providers? 

Why is evaluating FX brokers so challenging?

The short answer: it’s a lot of work for the grand majority of corporate treasury teams to do on their own.

The longer answer: evaluating potential FX brokers requires a meticulous assessment of various factors, including…

  • Regulatory compliance: Ensuring brokers comply with financial regulations is paramount for safe and fair trading.
  • Market reputation and credibility: A broker's reputation and track record are critical indicators of their reliability and integrity.
  • Cost efficiency: Understanding and comparing transaction costs among different brokers is essential for finding cost-effective FX solutions.

There’s also the fact that traditional vetting methods are often time-consuming and resource-heavy. Conducting research through regulatory bodies like the FCA in the UK, FINRA in the USA, and CySEC in Europe, are often intensive and inefficient for most businesses. But while this process can drain valuable costs and resources, it’s incredibly critical to have done to avoid the damage posed by non-vetted FX brokers.

The risks of non-vetted FX brokers

Non-vetted FX brokers pose significant risks to corporations, including:

  • Transparency problems: Hidden fees and conflicted interests can obscure the true cost and fairness of FX transactions, leaving businesses in the dark.
  • Fairness concerns: Execution quality and access to market information are crucial for fair trading. However, improper vetting makes it difficult to achieve either of those goals. 
  • Impact on corporations: The repercussions of engaging with unvetted brokers can be far-reaching, affecting corporate financial strategies and ultimately, the bottom line.

Striking the balance between avoiding these risks without suffering from the large amount of costs and resources that get sunk into vetting is tricky. That’s why we formed Liquidity Connect.

Bridging the gap: introducing Liquidity Connect

To address these challenges, we created Liquidity Connect, a platform designed to streamline the process of finding trusted corporate FX brokers. A new feature of our flagship FX Analytics software, Liquidity Connect provides:

A vetted FX broker network

One of the cornerstone features of Liquidity Connect is its ability to vastly expand access to a diverse range of trading partners. The platform simplifies the vetting process by offering a curated network of liquidity providers that have already gone through our expert-led compliance checks, ranging from renowned FX brokers in global financial hubs to specialised banks across various geographies.

By having access to a broader spectrum of trading partners, companies can better compare rates, so that they can then secure the most competitive pricing available. The sheer level of detail and transparency offered by Liquidity Connect also allows for businesses to tailor their liquidity sourcing according to specific needs, whether it’s based on:

  • Region or locality
  • Currency pair
  • Trading volume

Transparent competitive pricing

Liquidity Connect offers something that many corporate treasurers are hard-pressed to come by in the market: the option of choice. 

The platform's design encourages competition among liquidity providers, so that companies can benefit from tighter spreads and better execution prices. This competitive environment is facilitated by the transparent nature of Liquidity Connect, where trading partners' offerings are clear and accessible, empowering users to make informed decisions based on comprehensive price comparisons.

The impact of this enhanced competitive pricing can be profound, to the point that companies can massively reduce their trading costs — particularly if they’re dealing in large or frequent FX transactions, as even marginal improvements in pricing can translate into substantial financial advantages over time.

Guaranteed regulatory compliance

At the heart of Liquidity Connect's compliance framework is a dedication to fair transaction practices. This serves to significantly reduce conflicts of interest, ensuring that every FX dealing of yours is conducted with the utmost integrity. 

In a market where the fine line between compliance and compromise can often blur, Liquidity Connect provides a clear, unambiguous commitment to upholding the highest standards of conduct. This commitment is not just a promise but a guarantee that every user can trade with confidence, knowing their transactions are not only compliant but also conducted in a manner that is fair and transparent.

Beyond ensuring compliance, Liquidity Connect incorporates sophisticated risk management tools designed to align with the platform's, your business’, and your regions of operations’ compliance strategies. 

Whether it's adhering to anti-money laundering (AML) protocols, navigating the intricacies of cross-border transactions, or ensuring adherence to the latest regulatory updates, Liquidity Connect's integrated risk management tools stand ready to assist. 

Seamless integration with workflows

A key advantage of Liquidity Connect is the fact that it sits within the FX Analytics tool. This ensures that all trades executed through Liquidity Connect are automatically documented, stored, and analysed within your current analytics framework. Plus, it eliminates the need for manual trade file uploads, streamlining the post-trade analysis process and enhancing the overall user experience.

Our clients can effortlessly monitor and assess their execution performance against standard banking relationships, helping them refine their trading strategies based on solid data and performance metrics. 

Expert-led support by Just

Liquidity Connect marks another milestone in our efforts to create a comprehensive suite of tools that can benefit corporate treasurers. By signing up to our FX Analytics platform, users can benefit from the capabilities of a tool that offers total visibility over FX data, while Liquidity Connect offers the opportunity to explore and connect with new, trusted liquidity providers.

Realising the benefits of Liquidity Connect

We have always been guided by principles of transparency and corporate empowerment throughout the entire creation of our set of FX software solutions. And Liquidity Connect is our latest foray into fulfilling those requirements.

By simplifying the process of evaluating and selecting FX brokers, we wanted to provide corporations with the tools they need to make informed decisions, enhancing their FX trading strategies and ultimately contributing to a more equitable and transparent financial market.

Through Liquidity Connect and its integration with our wider suite of products, users can wholly experience: 

  • A streamlined onboarding process
  • Automatic documentation and analysis of trades
  • The ability to monitor and assess execution performance
  • Visibility over a large (and growing) network of alternative liquidity providers

Navigate the FX market with confidence with the support of comprehensive data to inform your trading decisions.

Find trusted corporate FX brokers with our support

The journey to find trusted corporate FX brokers is fraught with challenges. But it doesn't have to be. 

With Liquidity Connect, your business is equipped with a powerful tool that simplifies the vetting process, ensuring access to transparent, efficient, and reliable FX trading partners. As we continue to innovate and expand our network, we remain committed to supporting corporate FX teams in their quest for fairness and transparency in the FX market.

Discover how Liquidity Connect can transform your FX trading experience. Book a demo today and take the first step towards a more transparent and empowered future in FX trading.