Arbitrage, HFT, Quant and other automatic trading strategies in FX

The spot Forex market has grown significantly from the early 2000s due, in part, to the influx of algorithmic platforms. The rapid proliferation of information, as reflected in market prices, can present multiple arbitrage opportunities.

The spot Forex market has grown significantly from the early 2000s due, in part, to the influx of algorithmic platforms. The rapid proliferation of information, as reflected in market prices, can present multiple arbitrage opportunities. With the advent of MT4, retail traders gained an opportunity to trade the market algorithmically resulting in many investors getting involved in FX trading and hedging. However, the fragmented OTC nature of the FX market makes it difficult to implement some of the more sophisticated trading strategies due to lack of transparency from FX brokers and their limited supply of liquidity (pricing that is mostly recycled). So what should you be looking for when searching for a broker that can accommodate your trading strategy？ This article will cover the most common issues that arise when implementing different strategies and how to identify those brokers/liquidity providers that are suitable for your trading.