The MetaTrader 4 and MetaTrader 5 servers are located in the Equinix NY4 data centre. At the same time, cTrader servers https://www.xcritical.com/ are located in the LD5 IBX Equinix Data Centre in London. IC Markets’ dedicated servers can boast low latency and ultra-fast order execution of 40 ms.

in the exchange-like trading venue

As you can see, liquidity partners that hold asset classes are more reliable in the long term. FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade. Integral is a fx liquidity provider company involved with the development and operation of an FX Grid, which is multi-sided trading technology that connects active market participants with several major sources of FX liquidity.

Roles of Forex Liquidity Providers

When selecting a liquidity provider, traders and businesses should also consider the range of trading instruments and asset classes offered by the provider. For instance, some providers may offer access to FX Spot, FX Swaps, NDF/NDS, Precious Metals Spot & Swaps as well as crypto assets such as BTC/USD or ETH/USD. Others may focus on specific markets or asset classes, such as equities or commodities.

The Secret Ingredients: How Brokers Choose Liquidity Providers

Overall, IG Markets comes at the top of our list based on the huge selection of OTC markets. IG clients are also offered extended trading hours and 24/7 trading on selected instruments. Click the button below and start practising trading on a risk-free demo account. CFD and Forex traders who crave advanced analytics combined with high-speed performance and deep liquidity will probably find IC Markets’ cTrader trading platform as a solution best suiting their preferences. Pepperstone uses one of the most advanced trading technologies, which allows retail traders to enter and exit the market with ultra-fast execution speeds.

Top Forex Liquidity Providers in the Industry

Today’s markets have a variety of liquidity sources, including banks, financial institutions, and main trading companies (PTFs). These liquidity providers can assist the market in various ways thanks to their business models and capacities. When a trader enters a position, they take the opposite side to ensure that this order is filled. Most traders avoid them because of the conflict of interest presented by such a trade, but they are also liquidity providers. The liquidity depth of the provider has to do with monetary resilience, also known as financial stability.

Low liquidity is often experienced in several different markets, especially the real estate market, with transactions consisting of more than two- or five-day settlement periods, with other transactions taking years. Filippo Ucchino created InvestinGoal, a comparison site and educational portal for the online trading and investing industry. Through InvestinGoal, Ucchino helps users navigate the world of online investing and trading by providing trading guides, best brokers rankings, broker reviews, and broker comparisons.

Each provider has its own unique offerings, so it’s essential to consider all options before choosing a partner. Brokers connect to the Electronic Communications Network(ECN) of banks and other market-makers through them. These Liquidity Providers offer BUY and SELL quotes for all forex pairs, and those who deal with them enjoy the tightest spread. Though they make a profit from there, They also charge commissions and fees to the brokers. Apart from these sources of revenue, they rely heavily on trading the market for profits too. JP Morgan Chase, Barclays, Deutsche Bank, BNP Paribas, Citibank, and HSBC are prime examples of Tier-1 Liquidity providers.

Market Maker models are not favoured by traders and are seen as a disadvantage because these brokers take advantage when traders lose money because it means that the broker makes a profit from those losses. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk. Use our back-office to manage the whole system, access reports and account information. NDD brokers use either straight-through processing (STP) or electronic communications network (ECN) technology to execute orders.

Choosing a liquidity provider shouldn’t be rushed, and as highlighted, several criteria are worthy of your consideration. Therefore, analyze, compare, and make the best choice for your business’s unique needs. Your right liquidity provider will certainly make your path to success a lot smoother. Register as an FX liquidity provider on our platform and get featured on our homepage.

MiFID II also encourages a shift towards more structured marketplaces and away from over-the-counter trading, affecting how liquidity providers interact with the market and other participants. A liquidity provider in the Forex market makes money primarily through the bid-ask spread. This spread is the difference between the price at which they are willing to buy a currency (the bid price) and the price at which they are willing to sell it (the ask price).

• Additionally, the company provides cryptocurrency liquidity, which creates opportunities for brokers to incorporate digital assets trading alongside traditional currencies.
• Liquidity providers help forex brokers to offer lower spreads to their clients, they make spreads more stable when the market is volatile, and help improve the trade execution speed.
• By partnering with a banking as a service (BaaS) provider, liquidity providers can broker white-label access to fiat on/off ramping to drive high-volume currency trades.
• Liquidity providers earn primarily from the commissions generated by buying and selling currencies with their partners, though this is not the only way.

Instead, most OTC trades will be between two parties and are often handled via a dealer network. From our time trading with Plus500, we found Its risk management features quite helpful. These include guaranteed stop loss and a negative balance protection policy, which enables setting limits on potential losses without additional fees.

A liquidity provider, as previously discussed, offers buy and sell quotes for currency pairs and is prepared to execute trades at these prices. This enormous daily trading volume in the currency market is driven by a wide range of participants including governments, banks, financial institutions, corporations, and individual traders. This high level of activity ensures that significant currency transactions can be executed quickly and with minimal impact on the market price, a key aspect of liquidity.

This way, buyers and sellers aren’t waiting too long to complete their orders, and the market moves quickly. If you are a company with recruiting needs, our audience is the right one for you. Liquidity Finder aims to provide a comprehensive forum space for industry professionals to seek and find in-depth user-lead topics, questions and answers from our growing community. Having traded since 1998, Justin is the CEO and Co-Founded CompareForexBrokers in 2004. Justin has published over 100 finance articles from Forbes, Kiplinger to Finance Magnates. He has a Masters and Commerce degree and has an active role in the fintech community.

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. Nexo currently manages assets for over 5 million users across 200 jurisdictions and supports more than 200 cryptocurrencies. Recognized with over 50 awards in the past two years alone, CMC Markets is a pioneer in the CFD industry, providing an award-winning trading platform and native mobile apps to more than 80,000 active clients globally. CMC Group’s institutional offering allows clients to access multi-asset coverage from a single provider through the API Direct feed, including market-leading CFD liquidity and an FX product suite.

Broker-dealers or market makers facilitate all trades in the over-the-counter market. Having said this, OTC brokers could be both market makers or no-dealing desk brokers and still offer OTC trading. When we’re looking at Interactive Brokers from the advanced trader perspective, it’s all about low commissions, SmartRouting technology, Trader Workstation and API solutions.

X Open Hub is a well-regulated and established London-based Fintech broker that provides multi-asset liquidity and innovative trading technology, while simultaneously maintaining an open and transparent environment. Our ECN matching engine provides top execution speed and lowest possible latency. As Forex Liquidity Provider we combine deep, multi-asset liquidity with ultra-fast connectivity, to deliver tailor-made solutions that enhance your business growth. When choosing an OTC forex broker, understanding a trading platform’s capabilities and what trading tools you like to use is an important consideration. Second, the IBKR Pro plan allows professional clients to receive the best price execution due to IB’s SmartRouting technology.