If you're running a forex or CFD brokerage, access to quality liquidity is one of the most important decisions you'll make. Prime of Prime (PoP) liquidity is the model most brokers use to access institutional-grade pricing without the capital requirements of a direct prime brokerage relationship.
How it works
A Prime of Prime provider sits between the broker and the tier-1 liquidity providers (major banks and financial institutions). The PoP has a direct prime brokerage relationship with these institutions and aggregates their liquidity into a single feed that smaller brokers can access.
This means brokers get institutional-grade spreads, deep liquidity pools, and multi-asset coverage without needing the $10M+ in capital that tier-1 banks typically require for a direct relationship.
Why regulation matters
When choosing a liquidity provider, regulation is critical. A fully regulated PoP provider ensures that client funds are segregated, execution is transparent, and the provider operates under regulatory oversight. This protects both the broker and their end clients.
Look for providers regulated by recognized authorities. Regulation isn't just a checkbox — it means audited financials, capital adequacy requirements, and operational standards that unregulated providers don't have to meet.
What to look for in a PoP provider
Beyond regulation, consider: the depth of the liquidity pool, the number and quality of tier-1 relationships, execution speed and slippage statistics, available asset classes (forex, metals, indices, commodities), connectivity options (FIX protocol, API), and the quality of support.
Pricing models
PoP providers typically charge through spread markup, commission per lot, or a combination of both. Some offer tiered pricing based on volume. The key is transparency — you should know exactly what you're paying and what the raw spread looks like underneath.
At Equidity, Prime provides fully regulated PoP liquidity with tight spreads, multi-asset coverage, and transparent pricing. Combined with ZeroMS for bridge aggregation, brokers get a complete liquidity infrastructure in a single stack.