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Prime Of Prime - PoP

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Definition of 'Prime Of Prime - PoP'

A brokerage that provides service to traders (especially Forex traders) who need micro-contract trades. Prime of Prime (PoP) brokerages also often allow for trades of greater leverage and, as a result, more risk. Many of the brokers using PoP brokerages are small regional banks with clients that need smaller currency trade options.
Investopedia Says

Investopedia explains 'Prime Of Prime - PoP'

One of the reasons that regular forex prime brokerages don't provide the services that PoPs do is that there is a smaller profit margin in the smaller trades. Additionally, their systems often don't support a cost-effective way to complete smaller trades. PoP brokerages are also equipped to deal with increasing regulatory requirements for highly leveraged trades.

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