FXCM Pro has a dedicated liquidity management team that can source some of the most efficient liquidity providers and partnering venues, effortlessly allowing it to match every need of clients. Also known as the Swissy, this pair trades over $400billion daily and is the third most liquid in the forex market. A sudden price move may result from low liquidity, and this would lead to wider spreads. Fourth on our list is GBP/USD or the Pound Sterling quoted against the U.S. This pair is also sometimes called “Cable” since quotations in this currency pair were historically made via the transoceanic cable. Typically, dealing spreads in this pair are between two and four pips wide, and it tends to have a higher volatility and a lower trading volume than EUR/USD, for example.

A forex liquidity provider is an entity that creates a market by buying and selling currency pairs. They act as professional market makers and are involved in both sides (buy and sell) of forex transactions. Usually, these entities trade large volumes and are known as the big players. Investment corporations, commercial banks, and sometimes large brokerage firms are examples of liquidity providers.Some brokers fall under this category. Dealing desk brokers are also liquidity providers and offer quotes for currency pairs. Most times, these brokers fill orders by taking the opposite side of the trade.Brokerage firms are connected to all these liquidity providers.

Why do Forex liquidity providers have an important role? – An explanation

While illiquid market conditions may arise in the forex market, the vast majority of transactions are completed expediently and in a timely manner. The notably high amount of currency market liquidity typically available allows for competitive dealing spreads and the capability of the market to absorb large orders without affecting the market. If a forex broker does not generate enough volumes to ask for liquidity from a Tier-1 firm, https://www.xcritical.com/ they use Tier-2 liquidity providers. Tier-2 Liquidity providers, also known as Prime of Prime (PoP) or liquidity aggregators, act as a bridge between smaller market participants and Tier-1 liquidity providers. Our focus on outstanding customer service makes us one of the industry’s most sought-after liquidity providers for precious metals. A widely accepted type of connection supported by the majority of fintech software providers.

  • We encourage our clients to open a professional account and use our Liquidity pool to diversify liquidity sources and compare the conditions as we offer high performance and low fees.
  • It also has a great support team and a management team that helps CFD traders in every way possible.
  • First-time users can test Libertex via its free demo account, which comes with $50,000 in virtual trading funds.
  • The main drawback is that US clients cannot trade other assets on IG.
  • The Scope Markets front office is operated 24/5 by a highly skilled team of trading professionals covering forex, precious metals and futures.

Access to limited partnerships opens up a wide range of markets, including those for commodities, equities, bonds, and currencies. In order to trade a variety of instruments, traders might diversify their investment portfolio. It is also essential to accept that liquidity providers are not perfect. As with individual traders and brokers, the LP community must also react and adapt to changing economic and geopolitical situations, which can affect global liquidity considerations. Organizations like the International Monetary Fund (IMF) constantly monitor specific metrics, which provide a perspective on how global liquidity in our financial markets is trending over time.

Researching Liquidity Providers

An extensive range of tutorials and materials is available to assist with all technical aspects. A platform combining the features of margin and spot trading in one system powered by B2Broker. A backup solution for multi-user systems with no downtime required to perform the backup. For large brokers, it is recommended to deploy anti-DDOS high-defense servers to effectively target targeted DDOS attacks.

FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade. The best one for you will depend on your trading strategies and personal preferences. Liquidity is a crucial factor for the successful completion of transactions in any market. Liquidity providers play one of the most vital roles in the forex market, ensuring that all orders are filled and trades flow efficiently. Other currency pairs that see a lot of trading volume are the New Zealand dollars vs the US dollar, the Euro vs the British Pounds, and the Euro vs the Japanese Yen.


This means that spreads will change throughout the day, depending on broader trading commissions. For example, GBP/USD is currently trading with spreads of 1.6 pips, because the markets are closed. XTB is also one of the best low spread brokers for obtaining high-leverage limits. There are no time limits and it comes pre-loaded with $100,000 in paper trading funds. It holds licenses with various bodies, including the FCA (UK), CySEC (Cyprus), ASIC (Australia), and FINRA (US). All in all, eToro is one of the best forex brokers in the industry.

best forex liquidity provider

Dollars per business day, foreign exchange market liquidity has no equal in any other capital market anywhere in the world in terms of liquidity available to traders in the major currency pairs. ATC BROKERS LTD. is a premier brokerage firm providing online trading solutions within the foreign exchange industry to clients ranging from retail to institutional traders. The role of liquidity providers on forex is to provide interbank liquidity access and to bring together  brokerages and individual traders to increase the liquidity of the market. Liquidity providers are often large banks and other financial institutions. Forex brokers invest in robust trading technology, enabling fast and reliable execution of trades.

List of the best Liquidity Providers

In addition, the eToro copy trading tool allows users to buy and sell currencies passively. After choosing an experienced forex trader to copy,  any pairs they trade will be replicated in the user’s eToro portfolio. Furthermore, B2Broker clients from the EU, UK, and many other jurisdictions can now benefit from EU MiFID II regulation standards. Every top-notch FX liquidity provider ought to provide fast execution and complete post-trade clarity.

best forex liquidity provider

You should be given access to the whole order book by a liquidity provider via a trading platform and the FIX protocol, which allows you to view past and present tick data for every level of the order book. While Jefferies competes with all of FXCM’s liquidity providers on an equal footing, the relationship benefits the firm’s clients. Look for an FX liquidity provider that can handle high trading volumes efficiently and execute orders promptly, https://www.xcritical.com/blog/currency-market-the-role-of-forex-liquidity-provider/ even during peak market hours. Reliable trade execution minimizes the risk of order rejections, requotes, and slippage. Recent refinements, such as the FOX – Full Order eXecution block order trading mechanism, are gaining the attention of hedge funds, asset managers, commodity trading advisors (CTAs) and corporate treasuries. A forex liquidity provider is an institution or individual that acts as a market maker in the foreign exchange market.

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