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Forex Liquidity Providers List


  • BROCTAGON PRIME LTD

     

    broctagon logo 200x160

    Broctagon Prime , a wholly owned subsidiary of Broctagon Fintech Group, is a regulated liquidity provider based in Limassol, Cyprus, Specialising in Spot FX, Commodities and CFDs as well as Crypto. Broctagon Prime has partnered with leading financial institutions from around the world delivering exceptional and unrivalled

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  • LMAX GLOBAL

     

    lmax global250X200 LMAX Global is a leading execution venue for electronic trading of FX, metals, commodities and crypto CFDs. Part of LMAX Group, LMAX Global operates multiple trading venues globally, including regulated brokers in the UK and Europe.

    LMAX Global offers brokers and professional traders the ability to trade

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  • IS PRIME

     

    IS Prime250X200 IS Prime provides institutional clients with multi-asset execution across Tier 1 aggregated liquidity venues, together with Prime Brokerage services and cutting-edge front to back technology.

    The company was founded in 2014 and has rapidly grown to become one of the largest and most reputable brokerage firms in

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  • INVAST

     

    Invast Global250X200 Invast Global is an award-winning multi-asset prime broker based in Sydney, Australia. They specialize in providing prime services to retail brokers, small/mid-sized hedge funds, proprietary trading firms and banks.

    Invast Global publicly-listed Japanese parent company – Invast Securities Co. – has a 60-year history as a Securities brokerage and enjoys

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  • SAXO BANK

     

    SAXO BANK250X200 Saxo facilitates trading and investing for private and institutional clients, providing access to global markets and a broad range of asset classes and tradable instruments.

    All unified on our robust and intuitive trading platforms, incorporating everything from personalized watch lists to tailored charts, news filters and risk

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  • TICKMILL PRIME

     

    TICKMILL PRIME250X200 Tickmill Prime is catering to the needs of brokers, banks, hedge funds, money managers and professional traders, Tickmill Prime provides access to market-leading FX and CFD liquidity, advanced technology and turnkey white label solutions.

    Leveraging our strong relationships with top-tier financial institutions around the world, we deliver

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  • CFH CLEARING

     

    CFH Clearing250X200 CFH Clearing was founded in 2008, they have been established as one of the leading Execution Venues and have been voted “Best Liquidity Provider” for four years running at the Finance Magnates industry awards.

    CFH Clearing service a global client base of 600+ institutional clients with their

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  • GBE PRIME

     

    GBE Prime250X200 GBE Prime, a brand of GBE brokers Ltd., was launched to focus exclusively on GBEs’ institutional business. GBE was initially founded as Retail Broker by industry veterans but evolved strongly in the higher institutional business since mid-2015.The combination of the existing knowledge in the retail sector and

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  • ADVANCED MARKETS

     

    advanced markets250x200 Advanced Markets Ltd., founded in 2006, began with the simple, single mission of providing the best, most transparent foreign exchange trading experience possible.

    As a leader in FX Direct Market Access, all Advanced Markets’ platforms provide immediate execution on highly competitive, fully transparent, multibank liquidity.

    Advanced Markets

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  • EQUITI CAPITAL

     

    equiti capital250x200 Equiti Group Ltd is the parent company of some of the most progressive FX and CFD brands and prime brokerage providers in the industry. With over 300 global staff and 24/6 customer service, Equiti provides clients with access to individual, corporate and institutional brokerage services across various

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What is the role of a liquidity provider in forex markets?

Liquidity providers play an important role in the financial markets. They are primarily responsible for the smooth flow of orders and even the best execution of the trading orders that you make. Without the liquidity providers in the market, you would be prone to worst order fills and just be unable to trade smoothly.

Interestingly though, traders are also a kind of liquidity providers. Liquidity is defined as the ability to get in and out of your positions easily. As a trader, when you are placing pending limit or stop orders in the market, you are adding to the liquidity.

However, when you place market orders, you are removing liquidity from the markets. Besides a regular trader such as yourself, major liquidity providers in the market include specialized institutions such as banks.

You will notice that when you look around your forex broker's website, you will often see them cite a few such providers. Names such as Morgan Stanley, Citibank and so on are institutions whose FX dealing desk offers liquidity in the markets.

At times, even your average forex broker can act as a liquidity provider. This is often the case when you are trading with a dealing desk broker. The forex broker is obliged to become your counterparty and provide the much needed liquidity for you.

Lack of liquidity can create wider spreads in the market

The best way to understand how important liquidity providers are to the forex market is by observing the spreads with a variable spread or an ECN broker. You will often find that during off market hours such as late US or early Asian trading session, variable spreads tend to widen quite a bit.

This happens because the liquidity is low in the markets. There aren’t enough buyers or sellers. This is even more true when you look at exotic currencies. For example, USDZAR or USDTRY can see wider spreads during such off market hours.

If you try trading one of these currencies at such times, you will see that your orders are not executed at the price you wanted but is executed at a worst price. This is one such example of how important liquidity providers are to the world of forex.

Market makers are another important functionary in the world of liquidity providers. They basically ensure that there is a tradable market. It is a different story of course about the fact that they set their own markets, meaning that spreads can be at times unreasonable.

Still, if you want to enter or exit the markets, these market makers are there, ensuring that there is always a market for you to trade on.

In conclusion, liquidity providers often act behind the scenes. Yet, they play a very important in the markets especially during illiquid conditions. While market makers and dealing desk brokers are not that widely regarded in the forex markets, they are there for a reason. Without them, you just would not be able to trade as efficiently as you would.

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