For those unfamiliar, B2Broker is a leading liquidity and technology provider for the crypto and Forex industries, specializing in B2B services and products. The company caters to a diverse clientele, including large
licensed brokers, crypto exchanges, crypto brokers, forex brokers, hedge and crypto funds, and professional managers. B2Broker offers integration and support for CFD brokers, Spot Exchanges, and Margin Accounts, providing a wide range of features and capabilities
to accommodate businesses of any size. Tier-2 LPs are made up of brokers and smaller investment companies who connect retail forex trade to larger liquidity providers.

best forex liquidity provider

Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. 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. These pairs see a daily trading volume of up to $350billion in the forex market. It’s nicknamed “the cable” since, in the distant past, quotations were made through the transoceanic cable. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Best Forex Liquidity Providers 2023

Once the forex broker chooses the right liquidity provider, the liquidity provider himself will run a risk analysis on that specific EUR/USD order. So the forex broker will have to look for liquidity providers that are willing to take that risk. The financial stability of the liquidity provider guarantees timely and complete fulfillment of the company’s obligations to its customers. They provide an indication of companies’ financial stability, which can assist you in selecting a provider whose products and services are of high quality.

Their liquidity depth reached 10+ levels deep, with up to 50 million contract size per click on certain instruments. The key factors of successful operation of a liquidity provider are quotation prices, executable prices, spreads, rate of orders’ rejection and transparency. The competition in the industry is tough, yet companies providing best pricing and execution will always be on top of the rating. Integrating liquidity providers with a trading platform involves technical considerations.

What is a Forex Liquidity Provider?

CIMA aims to protect consumers by placing rules and regulations to set high standards and protocols for firms to conduct their business within the financial industry. They operate one global marketplace for FX – enabling transparency, open access and a level playing field for all market participants. The best and the most popular professional FOREX trading platform White Label solution tailored specifically to your brand.

One of the greatest benefits of a forex liquidity provider is access to various markets. 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. Major participants in the market contribute to liquidity by trading in high volume. These players include investments firms, mutual funds, hedge funds, retail forex brokers and traders, and high net worth individuals.

Price Markets is a leading provider of FX Prime Brokerage and Infrastructure services to the Professional trading community. The business’s success has been driven by its dynamic approach to the industry, a model that has allowed the business to grow rapidly since the launch in 2013. The example above contains one margin account based in US Dollars, and a lot of client groups based in different currencies. In this case, brokers will operate with the US Dollars only, but their clients have diversified portfolios which drive the broker to take a risk from the volatility of clients’ base currencies. It’s essential to consider a liquidity provider’s regulatory compliance and licensing.

The platform also
provides a 24/7 OTC desk for high-touch executions of spot and derivatives instruments, API trading and price streaming, and military-grade Class III vault storage for partners’ assets. The company’s custody framework combines industry-leading solutions from
BitGo, Fireblocks, Ledger Vault, and others, with $775 million in custodial insurance through Lloyd’s of London and Marsh & Arch. Since 2018, Nexo has aimed to bring professional financial services to the world of digital assets. By leveraging its team’s FinTech
experience and blockchain technology, Nexo empowers millions of people to harness the value of their crypto assets, shaping a better financial system.

Types of Liquidity Providers

You should consider whether you can afford to take the high risk of losing your money. “We
have worked closely with all Premium Liquidity Providers for numerous years,
witnessing their continuous dedication to educate, grow, and support the retail
FX and CFDs industry. Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more.

Higher liquidity in the forex market translates to the easy flow of transactions and lower costs of trading. Everyone benefits from high market liquidity as orders are filled no matter how large, prices remain competitive, and the trading cost is reduced. In this article, you will find a list of the best liquidity providers if you are curious to know what are they.

It is only possible to send 0.1 lot to the liquidity provider if the broker himself has clients who will be on the opposite side of the deal. If the order is large, it can be generated in a larger order pool and sent to the liquidity provider, who will already find a counterparty for this order. However, if the counterparty is not found (which happens very rarely), he, in turn, if possible, will send it to his pool of Tier 2 or ECN. When a Forex broker has direct access to a Tier 2 liquidity provider, it is called an STP (Straight Through Processing) broker. It is a model of outputting clients’ orders directly to the liquidity provider without any dealing intervention.

Liquidity providers are market makers, consequently, they lose money if the counterparty takes a positive trade. However, market makers can choose to delegate the risk to other liquidity providers. Tier 1 liquidity providers accept only large volume orders, which smaller brokers cannot get. There are different types of liquidity providers in the world, but in the forex world, the main ones are Deutsche Bank, UBS, and Barclays Capital. When the trader sends a market order, his order will be immediately executed. Moreover, if the order is small, it can be “overlapped” at the expense of the broker’s clients (usually, they are large Forex brokers).

Binary Options do not use live quotes, but mainly an algorithm to trade using expiration time. Therefore, binary options mainly use binary options broker trading software with no need for any separate liquidity provider. In this part, we gather common questions about Forex brokers’ liquidity providers. Usually, traders have many liquidity liquidity provider in forex provider-related questions and here we assist in that. In order to find a solid FX liquidity provider, you first need to do your research and identify your needs. After that, you should look up the ratings of the best liquidity providers on the Internet and conduct a comparative analysis to see which one suits you best.

best forex liquidity provider

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. FXCM is a leading provider of online trading in forex, CFDs, precious metals, equities, and cryptocurrencies. FXCM has been a subsidiary of Jefferies Financial Group, providing it with the advantage of the scale and breadth of the Jefferies Group of Companies. This also involves the provision of more than 100 financial instruments that can be traded including major currency pairs, cross rates, exotic currency pairs, and precious metals. In addition to this extensive list, currency futures market makers, high-volume traders or active traders, and speculators are also good sources of liquidity. Among the riskier elements of forex trading is the rapid pace at which transactions are carried out.

This broker receives the order and lets market know that there is an order to fulfill. Liquidity providers then make an offer to the broker who processed the order from which, the broker chooses the best offer. The broker finalizes the client’s order using liquidity from the liquidity provider that provided the best offer. The most liquid currency pair on the Forex market is EUR/USD, which makes up a whopping 28% of the total transaction volume.

How do online forex brokers provide liquidity to the retail market?

Below, we explain the terms relating to liquidity, including liquidity providers. X Open Hub is a liquidity-providing service owned by XTB, a reputable Forex broker. X Open Hub provides integration with popular platforms like MT4, and they can be connected through FIX API, PrimeXM, and oneZero. With spreads starting as low as 0.14 pips on Forex, X Open Hub offers competitive pricing and reliable trade execution.

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