From Fragmented Markets to Seamless Trading: An Overview of Soft-FX's Liquidity Aggregator

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Soft-FX TickTrader Liquidity Aggregator was designed as a software solution for aggregating liquidity from a variety of internal and external sources. After integrating this component with a trading platform, traders can gain anonymous access to a liquidity pool that offers equal trading rights to all participants.

In a nutshell, Soft-FX Liquidity Aggregator offers seamless and hassle-free trading operations, giving you the ability to create optimal conditions for your clients at an affordable cost. Discover how this fintech product can transform your trading experience and provide your clients with the best possible liquidity options.

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At its core, Soft-FX Liquidity Aggregator offers a cost-effective way to create the best possible trading conditions for your end clients.

  • This is achieved through a range of features that include pre-set connections to an unlimited number of external liquidity providers, including major crypto, FX,  and stocks exchanges, via FIX API and WEB API protocols. In fact, the delivery package comes with over 40 ready connections to these providers.

  • The software also offers market depth generation through its Level 2 feature, which provides traders with a market depth of 1000 layers and momentum statistics. This ensures traders have access to the most up-to-date and relevant market information. 

  • Furthermore, Soft-FX TickTrader Liquidity Aggregator leverages cutting-edge technologies to enable trades routing and ensure their best execution in any given conditions. This ensures that trades are executed in the most efficient manner possible.

  • In addition, the software also enables orders internalization, which means that instead of sending trade orders to external markets, the matching engine can execute orders within your platform. This provides traders with a more seamless trading experience, while also reducing latency and improving overall execution quality.

This primer is designed to give you a closer look at exactly how our product works in a live environment, and whether it would be a good fit for your business.

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TickTrader Liquidity Aggregator Anatomy

The TickTrader Liquidity Aggregator consists of three core components: The Bridge, The Feeder, and the Admin Eye admin console.

trading platforms


What you’ll get there?

Ready-to-use integration with MT4, MT5, and Ticktrader

Ability to connect any other platform

mt-4 MetaTrader 4
mt-5 MetaTrader 5
r-symbol TickTrader
Admin Eye info

What does this mean for you?

One employee instead of an entire department

Convenient tool for controlling liquidity channels

Feeder info

What does this mean for you?

No more spikes

No more invalid quotes

Processes quotes through special filters subsystem

Bridge info

What does this mean for you?

Flawless trades execution

Better traders’ experience

Prevents unexpected aberrant behavior of any connected LP or other external platforms

depth of market


What you’ll get there?

Up to 1000 bands coming from internal and external liquidity sources

Feeder info

What does this mean for you?

Boundless top-notch liquidity available

Сollects quotes from an unlimited number of sources

Bridge info

What does this mean for you?

Full requested volume execution at best prices available

Allows execution of any transaction by an external liquidity provider

Admin Eye info

What does this mean for you?

One employee instead of an entire department

Convenient tool for controlling liquidity channels

liquidity providers


What you’ll get there?

Ability to connect an unlimited number of providers;

Ability to aggregate liquidity on various trading instruments:

currencies, stocks, commodities, indices, and crypto


The Bridge

The Bridge is a powerful tool that enables seamless execution of transactions across multiple trading platforms, such as MT4, MT5, and TickTrader.

This component allows external liquidity providers, exchanges, or aggregators to execute transactions via FIX/HTTP/AGGR API.

The Bridge also features an integrated multi-level protection system that prevents unexpected aberrant behavior from connected LPs or trading platform servers. In case of system failure, the notification system alerts administrators through email, SMS, or messengers.

The Bridge ensures that all transactions are executed at the best available price by sending a request to liquidity providers as soon as information about transactions is received from the trading platform.

The Feeder

The Feeder component is responsible for receiving quotes from different sources, processing them, and forwarding them to other system components.

This component also runs quotes through a system of configurable filters, forming a balanced depth of market. The Feeder ensures that quotes are processed accurately and in real-time, ensuring that the TickTrader Liquidity Aggregator provides reliable and up-to-date market data.

You can dive deeper into the Feeder functionality in the next section.

The Admin Eye

The Admin Eye admin console is an essential component that provides full access to Aggregator controls.

Administrators can easily set up user access roles and rights for any information and/or activity available in AdminEye, ensuring that the system is secure and easy to manage.

  • The console allows administrators to monitor server resources, diagnose system components, manage liquidity channels, and monitor trading activity.

  • The console also provides comprehensive monitoring of all trading activity and allows for reviewing trading terms and conditions.

  • AdminEye provides information about equity, free margin, and margin level on every clearing account opened with a connected liquidity provider to facilitate risk management.

The Quotes Filters Subsystem

How it works

The Filters subsystem works by processing the L2s received from external liquidity providers based on parameters set in accordance with business objectives.

The first set of filters

The first set of filters handles the raw market depth, eliminating non-market quotes and spikes, and improving the overall quality of execution. These filters also allow for shedding markups on the broker or exchange side.

The market depth iteration that is formed after this step is used for allocation and client order execution. Providers that allow some number of unsuccessful execution attempts (configurable value) can be temporarily excluded from the market depths (configurable period).

The second set of filters

The second set of filters splices together identical layers, resolves arbitrage situations (if necessary), and anonymizes liquidity providers. This step shapes the next iteration of market depth delivered to trading terminals and relayed through APIs.

The Quotes Filters subsystem enables users to generate market depth that is beneficial to them and their clients.

Quotes filters roles

Filters serve several purposes, including protection against spikes and non-market quotes, improving the quality of order execution, and risk management and depth of market balancing. Examples of risk management filters include the Shift filter and Margin level filter.

Shift and Margin level filters

Bid/Ask price imbalances can result in significant long or short positions, leading to potential margin calls and stop outs. This poses a challenge for brokers who must pay unfavorable swap commissions for such instruments. TickTrader Liquidity Aggregator provides a solution with its advanced Shift and Margin Level filters, designed to mitigate these risks.

Shift filter

The Shift filter adjusts ask and bid prices by balancing positions on clearing accounts as necessary. By processing data for each liquidity provider, the filter calculates the total average weighted position, or AWP.

If quotes from banks exceed the maximum AWP, the filter affects the prices set by these providers, effectively balancing quotes in the feed and reducing the risk of stop outs.

Margin level filter

Margin Level filter calculates the margin level for each liquidity provider in relation to the margin level threshold, with four possible states:

  • no action: the filter is idle when the margin level value exceeds the margin level threshold value or the margin level is not available; 

  • remove bid: the filter terminates bid if the margin level value is below the margin level threshold and opened position is negative and exceeds margin zero volume by absolute value;

  • remove ask: the filter terminates ask if the margin level is below the margin level threshold and opened position is positive and exceeds margin zero volume by absolute value;

  • remove bid and ask: the filter terminates ask and bid if the margin level is below the margin level threshold and opened position is zero, or below margin zero volume by absolute value, or is not available.

Advanced Aggregation: More Value for Your Business

1. Solid execution technologies

At the heart of the aggregator are two core technologies: Best Execution Facility and Order Sweeping.

Best Execution Facility is a powerful tool that enables the aggregator to identify the best weighted average price in the market depth for each client. This is achieved by using:

Order Sweeping to split the client's order into smaller parts and execute it with multiple providers simultaneously. This ensures that clients receive the best possible execution quality and price.

2. Built-in market-making algos

TickTrader Liquidity Aggregator boasts a range of built-in market-making algorithms that enable the creation of customized trading symbols and systems. One such algorithm is the Synthetic Symbol Market Making algo, which allows users to create synthetic instruments based on existing ones.

Synthetic symbol Market Making

The Synthetic Symbol Market Making algorithm follows a comprehensive risk management procedure, ensuring that clients can enjoy enhanced trading opportunities while remaining fully confident in their safety.

By processing the price for two instrument pairs, the algorithm can create a new synthetic symbol. Moreover, the algorithm goes beyond simple mathematical calculations, factoring in the entire associated risk management process. This means that when a client trades on a synthetic symbol, the algorithm automatically opens relevant positions on the symbols that participated in its formation.

The Synthetic Symbol Market Making feature is particularly valuable for launching trading platforms in emerging markets, where currency conversion issues may arise.

3. A-Book / B-Book hybrid model

TickTrader Liquidity Aggregator's capabilities are designed to upgrade the way brokerages operate by providing them with the tools they need to increase their profitability. Our A-BOOK/B-BOOK hybrid model allows brokerage businesses to take advantage of both worlds by placing profitable traders and trades on the real market (A-Book) while placing unprofitable traders and their trades on the internal market (B-Book).

To make this possible, we have developed a trading multiplier system, which assigns a trading multiplier to each trading account on the platform. The value of this multiplier determines the percentage of the requested trading volume that goes to the external market, thereby ensuring that our clients only take on the risk that they can handle.

By combining this method with quality liquidity aggregation and thorough risk management procedures, you can get to the point where you are earning along with profitable clients and not losing money on them.

4. Extended capabilities

Detailed logging

Detailed logging system that registers the entire life cycle of a client order with a time record of each stage. This allows for quick system debugging and helps save resources in resolving disputes with both customers and suppliers.

Reporting system with unlimited customization options

Our reporting system is highly customizable and allows clients to create reports that are tailored to their specific needs. For instance, our liquidity provider execution quality report provides insights into the price deviation, liquidity provider orders not filled, liquidity provider orders delay, and slippage. We also provide reports on the liquidity provider executed quantity and trading server reports for MT4, MT5, and TickTrader servers.

Examples of report types available:

  • Liquidity providers execution quality (Price Deviation report, Liquidity Provider Orders not Filled report, Liquidity Provider Orders Delay report, Slippage report),

  • Liquidity providers executed quantity (Liquidity Provider Executed Quantity report)

  • Trading servers (MT4, MT5, Ticktrader) server reports.

Soft-FX TickTrader Liquidity Aggregator is a powerful software product designed to streamline trading operations by aggregating liquidity from a variety of external and internal sources.

By connecting this component to your trading platform, your clients gain access to a liquidity pool with equal trading rights for all participants.

If you have any questions about the operation of the product or how to incorporate it into your business, don't hesitate to contact us. 

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