Guide for brokers
What software does a forex broker need? The broker technology stack, explained
A retail forex and CFD brokerage runs on around a dozen connected systems. What each one does, how they fit together, and which a new broker needs on day one.
The short answer
At minimum, a forex broker needs a trading platform for clients to trade on, a liquidity bridge to its liquidity providers (unless all flow stays in-house), a client portal and CRM for onboarding and funding, KYC/AML checks, payment provider integrations, risk management for the dealing desk, and regulatory reporting.
As the brokerage grows it usually adds an IB portal for partners, mobile apps, copy trading, and increasingly AI for support and compliance.
The broker technology stack at a glance
| System | Layer | What it does | Usual approach |
|---|---|---|---|
| Trading platform | Trading core | Accounts, orders, execution, and margin for clients | Licensed (MT5, cTrader, DXtrade, Match-Trader, TradeLocker) or proprietary |
| Web & mobile terminals | Front office | Where clients watch prices and trade | Platform-provided, or custom on the platform's APIs |
| Client portal (trader's room) | Front office | Registration, account opening, deposits, withdrawals, documents | Often custom, as part of the CRM |
| IB portal | Front office | Partners' clients, volume, rebates, and payouts | Often custom |
| Liquidity bridge | Trading core | Streams LP prices in, routes orders out, applies markups | Licensed or custom |
| Price feed | Trading core | Filters and distributes quotes to platform and apps | Part of the bridge, or custom |
| CRM | Back office | Leads, sales and retention desks, client lifecycle | Licensed or custom |
| KYC / AML | Back office | Identity checks, sanctions and PEP screening, monitoring | Verification provider plus integration |
| Payments | Back office | PSP integrations, deposits, withdrawals, reconciliation | Integration with several PSPs |
| Risk management | Back office | Exposure, A-book/B-book routing, alerts | Licensed or custom |
| Reporting | Back office | Regulatory and management reporting | Custom or licensed |
The trading platform
The trading platform holds client trading accounts, accepts orders, calculates margin, and executes or routes trades. Most retail brokers license one — MetaTrader 5, cTrader, DXtrade, Match-Trader, or TradeLocker — and a few build their own trade server.
MetaQuotes stopped selling new MetaTrader 4 licences in 2018, so new brokers choose MetaTrader 5 or an alternative, and since 2024 many run more than one platform. Brokers extend MT5 with plugins and Manager API integrations, connect the other platforms through platform integration, and often put their own trading terminal and mobile app in front of them.
Liquidity bridge and execution model
How a broker executes client orders decides which trading-core systems it needs:
- A-book (STP): client orders are passed to external liquidity providers, and the broker earns from markups or commissions.
- B-book: the broker takes the other side of client trades internally and manages the resulting exposure.
- Hybrid: some flow is routed A-book and some B-book, by client group, symbol, size, or risk score.
Any A-book or hybrid broker needs a liquidity bridge: software that streams prices from liquidity providers into the platform and sends orders out, usually over FIX 4.4, with aggregation, markups, and routing rules. See liquidity bridge development.
CRM, client portal, and IB portal
The CRM runs the client lifecycle for the sales and retention desks. The client portal — often called the trader's room — is where clients register, pass verification, open accounts, and move money. The IB portal is where introducing brokers and affiliates follow their clients and rebates.
The three share one client record, synced in real time with every trading platform. See forex CRM development and IB portal development.
KYC, AML, and regulatory requirements
Every licensed broker must verify clients (KYC), screen them against sanctions and politically-exposed-person lists, and monitor transactions (AML). Regulation also reaches directly into software:
- ESMA's retail CFD rules cap leverage from 30:1 on major currency pairs down to 2:1 on crypto, require closing out positions at 50% of required margin, guarantee negative balance protection, and mandate a standardised risk warning.
- The EU Digital Operational Resilience Act (DORA) has applied since 17 January 2025, and requires the first report of a major ICT incident within four hours of classifying it as major.
- MiCA, the EU Markets in Crypto-Assets Regulation, licenses crypto-asset service providers; its transition period for existing providers ended on 1 July 2026 at the latest.
Sources: ESMA — CFD measures (Mar 2018) · Delegated Regulation (EU) 2025/301 · ESMA — MiCA
Payments and funding
Brokers connect several payment service providers (PSPs) — cards, bank transfers, local payment methods, and crypto — and cascade a declined payment to another provider. Stablecoins are becoming a major rail in some regions: one global CFD broker, Eightcap, reported stablecoins at up to 40% of deposits in LATAM and Southeast Asia.
Sources: Eightcap, Dec 2025
What a new broker needs on day one
- A trading platform with at least a web terminal and mobile access.
- Liquidity and a bridge — unless the broker starts fully B-book.
- A client portal with KYC and payments, so clients can register, verify, and fund.
- A CRM for the sales and retention desks.
- A risk dashboard for exposure and margin across the book.
An IB portal, copy trading, custom mobile apps, and AI usually follow once the brokerage has clients. Whether each piece should be licensed or built is covered in white label vs custom trading platform.
FAQ
What trading platform do forex brokers use?
Most retail forex and CFD brokers license a trading platform: MetaTrader 5, cTrader, DXtrade, Match-Trader, or TradeLocker. MetaQuotes stopped selling new MetaTrader 4 licences in 2018, so new brokers start on MetaTrader 5 or an alternative, and many brokers now run more than one platform.
What is the difference between an A-book and a B-book broker?
An A-book broker passes client orders to external liquidity providers and earns from markups or commissions. A B-book broker takes the other side of client trades internally and manages that exposure itself. Most brokers run a hybrid, routing flow to one book or the other by rules.
Does a forex broker need a liquidity bridge?
A broker that sends any client orders to external liquidity providers needs a liquidity bridge, or a platform with built-in liquidity connectivity, to stream prices in and route orders out. A broker that keeps all flow in-house still needs a reliable price feed but no order routing to providers.