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FX Brokers Liquidity Information

About: - Most of the global liquidity is provided by large investment banks that they are usually referred to as Tier 1 liquidity providers. Some of the Forex Brokers are connected to investment banks in order to receive the bid and ask prices from their own system which are usually very stable. By connecting themselves to multiple liquidity providers they can improve their rates and their spreads as they will be able to offer to their clients the best bid and best ask rates they receive from their liquidity providers.

- On the other hand, there are some Forex Brokers that act as Liquidity Providers themselves by offering their own bid and ask rates to their clients. This specific type of Forex Brokers, act as Market Makers with their own Dealing Desk but this does not restrict Market Makers to hedge their risks with tier 1 liquidity providers when they believe that they need to do so.

- In order to connect to multiple liquidity providers, Forex Brokers tend to use either bridges that automatically connect their own platform with another platform that acts as an ECN environment or manual covering. There are a number of different bridges that allows Forex Brokers to connect to an ECN environment in nowadays. Nevertheless, you need to take into account that even when your Forex Broker is connected to an ECN/ESTP environment it doesn’t necessarily mean that the Broker covers back to back all your orders. The bridges are usually design in a way that allows Forex Brokers to select which orders or group of clients are meant to be processed to the ECN environment and (A Book) which to remain not covered (B Book). The same principle exists for Market Makers that act as liquidity providers .it is up to the discretion of the Broker which orders will remain not covered and which they have to cover with another Liquidity Provider.

List of Forex Brokers by Liquidity Information:

Forex Broker Name Number of LPs Name of LPs Connection with Execution
15 (and More) - - Market execution 1order++
30 - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
1 FX Choice Market execution order++
- - - Market execution order++
- - - Instant execution order++
30 plus x financial solutions x financial solutions Both - Market and Instant execution order++
20 plus - - Market execution order++
- - - Market execution order++
- - - Market execution order++
4 Can't disclosed Other Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
10 plus N/A N/A Both - Market and Instant execution order++
Market execution order++
12+ - - Market execution order++
- - - Both - Market and Instant execution order++
3 ADS Securities UAE Market execution order++
10+ - - Market execution order++
8 - - Both - Market and Instant execution order++
0 - - Market execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
25 Market execution order++
Not disclosed - - Both - Market and Instant execution order++
NOT DISCLOSED - - Both - Market and Instant execution order++
Market execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
10+ Banks - Both - Market and Instant execution order++
1 xOpenHub xOpenHub Both - Market and Instant execution order++
6 Goldman Sachs, HSBC, CITI. - Market execution order++
- - - Market execution order++
5 - - Market execution order++
- - - Market execution order++
- - - Market execution order++
Spotex Market execution order++
1 Hantec PrimeXM Market execution order++
15 UBS bank, Barclays, BNP Paribas, GS, Bank of America, J.P. Morgan, Morgan Stanley, Deutsche Bank, Nomura Bank and Lucid Markets - Instant execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
5 DMA LIQUIDITY - Both - Market and Instant execution order++
5 - One Zero Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
3 plus Confidential - Both - Market and Instant execution order++
30 plus Interbank execution hub Interbank execution hub Market execution order++
20+ - Integral Market execution order++
Multiple partner brokers each have multiple LPs Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
25 Market execution order++
- - - Market execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
30 plus ECN/STP - Market execution order++
20 - - Market execution order++
12 plus Market execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
Both - Market and Instant execution order++
3 Saxo, Gain Market execution order++
4 JP Morgan, Barclays, Nomura and FXCM Pro JP Morgan, Barclays, Nomura and FXCM Pro Market execution order++
Not Disclosed - - Market execution order++
3 - - Instant execution order++
3 CFH CFH Both - Market and Instant execution order++
- - - Market execution order++
6 - - Both - Market and Instant execution order++
10 Multiple Other Both - Market and Instant execution order++
5 LMAX NO Market execution order++
- - - Market execution order++
4 - - Instant execution order++
7 ECN No Market execution order++
- - - Market execution order++
18 UBS, JP MORGAN, ANZ, BARCLAYS, CITADEL Other Market execution order++
18 - - Market execution order++
6 Instant execution order++
30 plus - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
4 - - Instant execution order++
1 - - Market execution order++
- - - Both - Market and Instant execution order++
15 Bank Of America, Barclays, BNP PARIBAS, UBS, CITADEL, CITI, Goldman Sachs, KCG, SOCIETE GAENERALE, Morgan Stanley, RBS, COMMERZBANK, RBC, CREDIT SUISSE other Both - Market and Instant execution order++
- - - Market execution order++
13 N/A First Derivatives Market execution order++
- - - Market execution order++
- - - Both - Market and Instant execution order++
- - - Instant execution order++
- - - Market execution order++
Not disclosed - - Both - Market and Instant execution order++
4 HSBC, UBS, Deutsche Bank, Bank of America - Both - Market and Instant execution order++
30 plus Banks plus our own clients Yes with all Market execution order++
20 plus UBS SA, Citigroup, Commerzbank, Goldman Sachs & Co, BNP Paribas, Morgan Stanley, JPMorgan Chase, Deutsche Bank, Currenex, Lava, Nomura, SEB Bank, Bank of America, and Hot Spot FX. - Instant execution order++
10+ OneZero - Market execution order++
2 Barclays, Deutsche Bank - Market execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
15 BARCLAYS, citibank, Deutsche Bank, Goldman Sachs, J.P.Morgan, UBS, Credit Suisse, CommerzBank, Morgan Stanley, RBS, BNP Paribas, Bank of America Currenex Market execution order++
- - - Market execution order++
- - - Market execution order++
- - - Both - Market and Instant execution order++
- - - Instant execution order++
- - - Both - Market and Instant execution order++
10-20 Cannot Disclose ( NDA ) - Market execution order++
- - - Market execution order++
N/A N/A N/A Both - Market and Instant execution order++
10 - Currenex Market execution order++
- - - Both - Market and Instant execution order++
5 plus - - Market execution order++
10 plus - - Market execution order++
- - - Both - Market and Instant execution order++
15 plus - - Market execution order++
16 - - Market execution order++
- - - Market execution order++
- - - Both - Market and Instant execution order++
10 - - Instant execution order++
- - - Both - Market and Instant execution order++
4 City Bank,HSBC Bank,UBS Bank,Barclays Bank NO Market execution order++
30 plus Other Market execution order++
14 Instant execution order++
5 plus - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
10 plus LMax, CitiFX, FXOpen, Integral, Currenex, Hotspot, etc Yes, we are working with Currenex and Integral Market execution order++
4 - - Both - Market and Instant execution order++
- - - Market execution order++
N/A - - Both - Market and Instant execution order++
- - - Instant execution order++
5 - - Both - Market and Instant execution order++
7 ECN NO Market execution order++
5 plus Barclays, HSBS, J.P.Morgan, RBS, Goldman Sachs. etc. You can find the full list at the bottom of our website here: https://www.fpmarkets.com/. - Market execution order++
2 plus - - Both - Market and Instant execution order++
N/A - - Both - Market and Instant execution order++
- - - Market execution order++
- - - Market execution order++
- - - Market execution order++
10 approximately We use our Matching Engine technology We use our Matching Engine technology Market execution order++
25 plus Tier 1 Banks, ECN's, Prime Brokers Currenex Market execution order++
4 - - Market execution order++
10 plus Top tier 1 fx-interbanks and LPs Yes Market execution order++
N/A - - Market execution order++
N/A - - Both - Market and Instant execution order++
9 - - Both - Market and Instant execution order++
- - - Market execution order++
3 - - Market execution order++
N/A - - Both - Market and Instant execution order++
16 IS Prime, Deutsche Bank NO Both - Market and Instant execution order++
30 plus Banks Prime XM Market execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
Aggregated flow from multiple liquidity providers multiple liquidity providers Other Market execution order++
4 Market execution order++
N/A N/A N/A Both - Market and Instant execution order++
15 Banks and Other Brokers Integral, Currenex, PrimeXM Market execution order++
15 Banks, Brokers, Prop. Market Makers Integral & Currenex Both - Market and Instant execution order++
12 - - Market execution order++
Not disclosed Not disclosed Not disclosed Both - Market and Instant execution order++
25+ - - Market execution order++
20 top tier banks - - Market execution order++
2 Banks - Market execution order++
10 Morgan Stanley, Barclays, J P Morgan, UBS, Deutsche Bank, BNP Paribas, Bank of America, Nomure, Citibank, RBS Integral Both - Market and Instant execution order++
4 - - Both - Market and Instant execution order++
20 Market execution order++
- - - Both - Market and Instant execution order++
- - - Market execution order++
- - - Both - Market and Instant execution order++
5 Not disclosed - Market execution order++
N/A - - Both - Market and Instant execution order++
--- --- --- Instant execution order++
N/A N/A N/A Both - Market and Instant execution order++
- - - Market execution order++
1 - - Instant execution order++
- - - Instant execution order++
13 - - Market execution order++
3 - Currenex Both - Market and Instant execution order++
10 plus J.P.Morgan, UBS, Citi-bank, Nomura, Barclays, Bank of America, BNP Paribas, Hsbc, Credit Suisse, Morgan Stanley, RBS, Goldman Sachs, Deutsche bank, Commerzbank Currenex Market execution order++
30 + Banks Other Market execution order++
N/A - - Both - Market and Instant execution order++
Not disclosed - - Market execution order++
- - - Market execution order++
15 - - Market execution order++
5 Goldman Sachs, JP Morgan, Bank of America, Commerzbank, BNP Paribas, and other banks and high frequency trading firms. --- Market execution order++
N/A N/A Currenex Market execution order++
N/A - - Both - Market and Instant execution order++
- - - Instant execution order++
- UBS, JPMorganChase, HSBC, SMBC, CreditSuisse, CommerzBank, Morgan Stanley, Natixis, Bank of America, BNP Paribas, RBS, SEB, Goldman Sachs, Nomura - Market execution order++
10 Market execution order++
Both - Market and Instant execution order++
N/A N/A N/A Instant execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
N/A - - Market execution order++
30 plus N/A N/A Both - Market and Instant execution order++
12 - - Market execution order++
10 plus CitiBank, Deutsche Bank - Both - Market and Instant execution order++
- - - Market execution order++
Unknown Both - Market and Instant execution order++
-- -- -- Market execution order++
- - - Market execution order++
15 UBS, Goldman Sachs, Merrill Lynch, BNP Paribas, Citi, Commerzbank, Barclays, JP Morgan and Credit Suisse + more Market execution order++
5 - - Market execution order++
20 plus - - Market execution order++
10 to 12 - - Market execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
- - - Both - Market and Instant execution order++
- - - Instant execution order++
1 None - Market execution order++
3 UBS, Barclays, Deutsche Bank, JP Morgan Chase, BNP Paribs UBS, Barclays, Deutsche Bank, JP Morgan Chase, BNP Paribs Market execution order++
- - - Market execution order++
N/A - - Market execution order++
4 https://leverate.com https://leverate.com Both - Market and Instant execution order++
4 - - Market execution order++
- - - Both - Market and Instant execution order++
10 - - Market execution order++
- - - Market execution order++
- - - Market execution order++
Select order++
5 YES - Market execution order++
Over 200 - - Market execution order++
3 Restricted infromation Yes Both - Market and Instant execution order++
5 - - Both - Market and Instant execution order++
5+ - - Both - Market and Instant execution order++
Instant execution order++
- - - Both - Market and Instant execution order++
Aggregation through the bridge(most of popular LP's) Aggregation through the bridge(most of popular LP's) Aggregation through the bridge(most of popular LP's) Market execution order++
10 Private Market execution order++
10 NO NO Both - Market and Instant execution order++
- - - Market execution order++
Market execution order++
Market execution order++
- - - Both - Market and Instant execution order++
30+ - - Market execution order++
- - - Instant execution order++
18 - - Market execution order++
10 First Derivatives Market execution order++
10 plus Banks Currenex and Integral Market execution order++
6 Credit Suisse, Barclays, Deutsche Bank, Goldman Sachs, UBS, and Merrill Lynch Both - Market and Instant execution order++
5-10 Market execution order++
22 Banks and liquidity providers - Other Market execution order++
5 plus - - Market execution order++
6 - - Both - Market and Instant execution order++
7 Cannot disclose such info Not directly Market execution order++
20 plus Deutsche bank, Citi Group, Goldman, Sashs, JP Morgan Chase, UBS, HSBC https://www.profiforex.com/providers Both - Market and Instant execution order++
5 - - Both - Market and Instant execution order++
2 HSBC currency Instant execution order++
4 Citi,Sucden Financials, Saxobank, TopFX - Market execution order++
10 - - Both - Market and Instant execution order++
4 - - Market execution order++
not disclosed - Other Market execution order++
20 plus Market execution order++
- - - Instant execution order++
2 - - Market execution order++
- - - Market execution order++
6 - - Both - Market and Instant execution order++
N/A - - Market execution order++
Both - Market and Instant execution order++
3 - - Instant execution order++
5 - - Instant execution order++
15 plus Several Other Market execution order++
10-20 - - Market execution order++
3 - - Both - Market and Instant execution order++
- - - Market execution order++
15+ - - Market execution order++
- - - Market execution order++
30 plus Credit Suisse | JPMorgan | Goldman Sachs | Citi | Societe Generale | UBS | Barclays | BNP Paribas | Bank of America | CIBC | Commerzbank | Deutsche Bank | Dresdner | HSBC | Morgan Stanley | Nomura | RBS No Market execution order++
2 PrimeXM - Market execution order++
- - - Market execution order++
20+ - - Market execution order++
Confidential Confidential Confidential Both - Market and Instant execution order++
2-10 - - Both - Market and Instant execution order++
2 OR 10 - - Instant execution order++
4 - - Market execution order++
10 - Barclays, Bank of America, Citibank Instant execution order++
50 - - Instant execution order++
- - - Both - Market and Instant execution order++
Instant execution order++
15+ - - Market execution order++
10 HSBC, Deutsche Bank, UBS, BNP Paribas, Bank of America, Citibank, RBS, Morgan Stanley, Credit Suisse, Barclays - Both - Market and Instant execution order++
10 plus Market execution order++
16 Lmax, JPMorgan Chase, Goldman Sachs, BNP Paribas, Integral, Std Chartered, Credit Suisse, Marrill Lynch, City, Bank of America, UBS, HIRO, RBS, HSBC, Deutsche Bank, & Barclays - Market execution order++
- - - Instant execution order++
- - - Market execution order++
5 - - Instant execution order++
- - - Instant execution order++
20 Tier 1 Banks & 5 ECN's - - Market execution order++
N/A N/A Currenex Market execution order++
- - - Both - Market and Instant execution order++
30 plus - - Both - Market and Instant execution order++
18 - - Market execution order++
3 to 5 - - Both - Market and Instant execution order++
Market execution order++
4 Under NDA Onezero Market execution order++
- - - Market execution order++
30 plus Confidential Currenex Market execution order++
- - - Market execution order++
5 plus - - Both - Market and Instant execution order++
- - - Market execution order++
Not Disclosed - - Market execution order++
15 Leading Liquidity Banks Other Market execution order++
3 LMAX, CFH Clearing, Currenex Both - Market and Instant execution order++
3 - - Both - Market and Instant execution order++

Who is a liquidity provider and what do they do?

If you have been trading forex for any other market for even a little while, you might have come across the term; liquidity provider. As the name suggests, this is an institution or a firm that offers liquidity for the market in question. Liquidity is nothing but the ability with which you can easily convert an asset to cash. In some cases, it is also defined as the ability to convert one asset into another.

 

Among all the asset types, cash is the most liquid of all. This is the reason why that currency or cash is so widely used. Using cash, you can buy an asset such as real estate and you can also convert is back, by selling the real estate property. The person or persons who are willing to buy the property are liquidity providers, as an example.

In retail forex trading, when you place a market order and exit after a few pips, the very reason you are able to do this is because of the availability of liquidity. Without this liquidity, you would not be able to trade. In some cases, you might but you would be able to trade only at a worse price that what you want to buy or sell at.

 

How does a liquidity provider fit into forex?

Your forex broker is not just the only one in the retail forex market. Behind the forex broker is a pool of liquidity providers. These are made up of dedicated liquidity providers or LP and also a network of interbank markets.

 

Of course, your forex broker cannot tap directly into these markets. They go through a prime brokerage service. This prime brokerage service comprises of multiple forex brokers. Thus, by bringing in more volume, the forex brokers are able to plugin and take advantage of the additional liquidity.

 

What happens when liquidity dries up?

When liquidity dries up, it simply means that there aren’t enough buyers or sellers in the market. This means that you are stuck with your position. The only way to get out is at a price that is quoted to you and this can often be disadvantageous to you.

 

Secondly, when liquidity is dry, you won’t be able to close your position. Think of this as you wanting to sell your house. But no one is willing to buy. You end up either selling the house at a loss, or you have to continue to hold on to the property.

 

This is similar with the liquidity in the currency markets. A very good example is that of the Swiss franc crash. During the time, the CHF was pegged to the EUR and was heavily defended by the Swiss national bank. As a result, there was a lot of liquidity at the peg.

 

But once the SNB said that it would no longer defend the peg, it took away the liquidity, leading to heavy losses among traders. As you can see from the above, liquidity is something that traders take for granted, but it is infact quite an important element when it comes to trading.

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