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SAby u/salmamansour·6dDiscussion

Onboarding & Liquidity for a Small FX Algo Shop

We're a small team, running a few uncorrelated FX strategies for managed accounts, primarily on $EURUSD, $GBPUSD, and $USDJPY. Current setup is with a medium-tier broker, decent spreads, but the onboarding process for new client funds is consistently a bottleneck. It's not just the KYC/AML, which is to be expected, but the sheer back-and-forth on documentation, sometimes for weeks, even for relatively straightforward profiles. This creates a significant drag on AUM growth and client satisfaction.

More critically, as we scale slightly, I'm starting to worry about liquidity depth with our current provider, especially during volatile periods or for larger block trades. I'm keen to hear from others in similar positions – smaller prop firms or algo shops – how you've navigated these two points. Have you found brokers or PBs that offer genuinely streamlined onboarding for multiple managed accounts and can consistently deliver competitive liquidity for specific pairs without excessive slippage? The goal isn't to chase the absolute tightest spread, but to find a reliable partner that understands the demands of systematic trading and doesn't treat every new account as a novel legal exercise. Any insights into the trade-offs you've experienced would be valuable.

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1 Comments

PWu/phongthep_worawit·5d

This sounds familiar. Have you explored any prime brokerage services or direct liquidity providers? Sometimes the initial setup is more involved but streamlines client onboarding significantly down the line.

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