Flow Traders Ltd

AEX:FLOW

Business Description

Sector

Financials

Industry

Financial Services

Headquarters

Bermuda BM

Employees

635

IPO date

Jul 10, 2015

Flow Traders is a securities trading firm that makes markets in exchange-traded funds, exchange-traded products, and other listed financial instruments. In plain terms, it stands in the middle of the market by posting buy and sell prices and helping investors trade quickly in products such as ETFs, futures, bonds, and commodities-linked instruments. Its main customers are asset managers, banks, brokers, exchanges, and other institutional investors that need liquidity and efficient trading.

The company makes money from the bid-ask spread and other trading income tied to the flow of orders it handles. When investors buy or sell these products, Flow Traders uses its own capital and trading systems to quote prices, manage risk, and earn a small amount on many transactions. This makes its business different from an asset manager or broker because it is not mainly charging advisory fees or managing client assets for the long term; it earns from being a ready buyer and seller in fast-moving markets.

Its role is important in modern markets because ETFs and other listed products trade on exchanges and need constant liquidity. Flow Traders helps keep those markets active, especially when trading is busy or conditions are choppy. That makes it a specialist financial intermediary rather than a traditional bank or fund manager.