In order to suitably manage risk and exposure, ThinkMarkets may take on the risk of client trades and positions by executing trades directly, or pass trades direct to a liquidity provider, using a Straight Through Processing (STP) arrangement.
Where trade risk is passed to a third party (STP - Third Party is counterparty); it is the responsibility of the Liquidity Provider (LP) to ensure the fair and acceptable execution of trades. All orders are routed to them through the use of an order execution engine, which features no chance of interference. Clients receive an execution direct from the LP and the only difference between the execution price provided by the LP and that received by the client is the spread mark-up applied by ThinkMarkets. We have entered into liquidity arrangements with top tiered institutions to ensure the best handling of client trades. From time to time we may add or remove LPs to ensure the best execution of trades.
Where trade risk remains with ThinkMarkets (ThinkMarkets is counterparty), all orders are routed from the trading platforms through an order execution engine to ensure the appropriate and speedy execution. All orders are handled and executed in line with the executions available in the market and the rates received from liquidity providers are passed to clients plus the small spread mark-ups charged by us for using our services.
Unless in the case of major technology errors, no orders are manually executed by dealers and all orders are routed through the bridge.