The forex market is the largest financial market in the world, with a daily trading volume of over $7 trillion. Forex brokers are key players in this market, providing traders with access to the global forex market and facilitating the execution of trades.
Operating a forex brokerage may be challenging, especially when ensuring liquidity across different regions. Brokers should choose an LP that operates under different jurisdictions and can provide deep liquidity across multiple asset classes and geographic regions. This process may be intricate, especially when a broker with a functioning business and extensive client base is looking for a liquidity provider to expand their operations to new regions. In such cases, brokers may need a specific solution to manage liquidity, like a liquidity bridge.
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 list of jurisdictions.
AC Markets Europe Limited operates under the trading name Ausprime and offers prime of prime liquidity services to its clients, which include brokers, hedge funds, and other entities.
Ausprime provides liquidity in more than 600 financial instruments, which include forex, indices, commodities, and metals. By offering direct access to tier-1 liquidity venues, Ausprime provides clients competitive pricing and the tightest spreads. As a B2B prime broker, the company adheres to the financial regulatory frameworks of various regions through its MiFID II and CySEC licenses.
Tel-Aviv Stock Exchange
The Tel-Aviv Stock Exchange (TASE) plays a crucial role in the growth of the Israeli economy by providing market infrastructure. As the only securities exchange in Israel with high entry barriers in terms of regulation and the need for reliable technological infrastructure, TASE holds a pivotal position. Both the Israeli government and companies rely on TASE’s markets for liquidity and capital.
The Tel-Aviv Stock Exchange facilitates the listing and trading of a broad range of securities and derivative instruments. These include corporate bonds, shares, government bonds, Treasury bills, ETFs, convertible securities, single stock options, options and futures on equity indices, and options and futures on foreign currency exchange rates.
CMC Markets provides brokers access to over 10,000 trading symbols, encompassing currency pairs, metals, indices, energy, commodities, and cryptocurrencies, enabling them to expand their portfolio. Regulated by the FCA and BaFin, it’s a reliable stakeholder in the UK and Germany.
Over the past two years, CMC Markets has received more than 50 awards that acknowledge their services’ quality and commitment to delivering innovation and technology to clients. This recognition was primarily due to their Next Generation web-based trading platform and native mobile apps.
EXANTE, through its proprietary technology, provides direct access to over 50 global financial markets and offers client-centric brokerage solutions. As licensed by the FCA, EXANTE provides trading services to professional and institutional clients in the UK.
The company enables clients to access various financial instruments, including 24,000 global stocks, new IPOs, ETFs, bonds, futures, and options from a single multi-currency account.
Saxo Group is a bank that offers liquidity services for managing risks and operating across a range of financial instruments. The bank is based in Copenhagen and has offices in major financial centers such as Denmark, the UK, Amsterdam, Singapore, Australia, Hong Kong, and Switzerland.
Choosing a reliable liquidity provider is essential for any brokerage that aims to operate efficiently. However, besides getting access to the liquidity pool, brokers need to connect it to the trading platform. To manage liquidity from only one provider, brokers may use a gateway to connect it to a MetaTrader server. Otherwise, they should look for more complex solutions like a liquidity bridge to aggregate liquidity and market data from multiple providers or across various servers.