Your execution model shapes risk, revenue and client experience more than almost any other decision. Here is what A-book, B-book and hybrid actually mean in practice, and how brokers combine them.
A-book: passing flow to liquidity providers
- How STP execution works through a bridge
- Revenue from spreads and commissions
- Lower risk, lower margin, dependence on LP pricing
B-book: internalising flow
- Acting as the counterparty to client trades
- Higher potential revenue with real market risk
- Why risk management tools are non-negotiable
Hybrid: routing by client and symbol
- Classifying clients by profitability and behaviour
- Rules by symbol, group or volume
- Switching models without changing platforms
Choosing for your brokerage
- Questions to ask about volumes, capital and risk appetite
- How a liquidity bridge with smart routing supports all three models
