The forex is the largest financial market in the world. Forex brokers are essential players, providing traders access to the global forex market and facilitating the execution of trades.
One of the most critical factors for forex brokers to operate efficiently is to ensure they have access to reliable and deep liquidity and efficient solutions to manage liquidity, like a liquidity bridge.
The Liquidity Provider (LP) provides the prices that the broker offers its clients, and needs to be reliable, efficient, and transparent.
There are numerous forex LPs in the market, and choosing the right one can be challenging. Brokers should consider various factors, such as the range of asset classes available, the depth of liquidity, and the geographic regions covered.
Additionally, selecting an LP with a robust reputation, regulatory compliance, and excellent customer service is crucial.
In this article, we will look closer at the top 5 liquidity providers for forex brokers.
These providers have been selected based on their reputation, offer, and the jurisdictions where they operate. With this information, brokers can decide which LP to choose to help grow their business and improve their trading conditions.
IS Prime FX
IS Prime FX operates with many of the largest e-FX brokerage firms globally, providing solutions from pure liquidity to full front-to-back white-label solutions and risk management services.
IS Prime FX offers flexible pricing derived from strong liquidity across 100+ forex pairs and access to other trading instruments, such as commodities and indices.
The company has a global presence in Europe, Asia, and the US, ensuring complete coverage during local market hours.
GMI
GMI UK is a financial service provider that offers liquidity for forex and CFD products to brokers, hedge funds, and professional traders.
The company is subject to regulation by the Financial Conduct Authority, which ensures that its operations are conducted in accordance with strict financial standards.
GMI UK prides itself on providing its clients with actual institutional pricing sourced from robust liquidity, which guarantees excellent trading conditions.
Moreover, the company’s trading system ensures that every order is executed with 100% straight-through processing (STP) and provides 5 customizable feeds to meet all of the trading flow requirements of clients.
CMC Markets
CMC Markets offers a wide range of trading symbols that include more than 10,000 instruments such as currency pairs, metals, indices, energy, commodities, and cryptocurrencies, which helps brokers diversify their portfolios.
The company is regulated by the Financial Conduct Authority (FCA) and the German Federal Financial Supervisory Authority (BaFin) and is considered a reliable partner in the UK and Germany.
CMC Markets has been consistently recognized for its commitment to providing innovative and technology-driven solutions to clients, having won over 50 awards in the past two years.
This is primarily attributed to the success of their Next Generation web-based trading platform and native mobile apps, which are highly rated by users.
ADS Securities
ADSS is a leading provider of sophisticated over-the-counter (OTC) products and services, offering a wide range of trading options to retail brokers, banks, hedge funds, and asset managers. The company leverages bank, non-bank, and multiple regional liquidity pools to provide a unique trading experience to its clients.
ADSS offers a bespoke MT4 platform that allows users to connect with multiple sources of regional liquidity to optimize and execute their trading strategies.
In some cases, the company can offer pure buy-side liquidity to specific clients, enhancing their ability to conduct trades efficiently.
Finalto
Finalto is a financial services leader with a wealth of experience and a global presence. With offices in the UK, Singapore, Denmark, Australia, and Cyprus, as well as execution infrastructure in LD4, NY4, and TY3, Finalto is well-positioned to serve clients around the world.
The company offers unbeatable liquidity and prime broker solutions, giving clients access to over 800 instruments, including forex, precious metals, base metals, single stock CFDs, index CFDs, cryptocurrency, and energy products.
By providing a single cross-margined account, Finalto increases the capital efficiency of your business, making it easier to trade across a range of markets.
Parting advice
Picking up a dependable liquidity provider is crucial for brokerages striving for efficient operations. It is about gaining entry to the liquidity pool and connecting it to the trading platform.
Brokers may use a gateway to connect it to a MetaTrader server if they intend to handle liquidity from a single provider. On the other hand, they should search for more intricate solutions, such as a liquidity bridge, to gather liquidity and market data from various providers or servers.Â
