Liquidity Provider Forex brokers reviews and comparison by ForexSQ.com experts, List of top 10 Forex Liquidity Providers in the world and comparison Liquidity Providers vs market makers brokers.
What Is Liquidity Provider
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A liquidity provider connects many brokers and traders together, increasing the liquidity of the joint market. A higher liquidity is desirable for everyone, as it drives down the spread and thus the cost of trading.
Especially straight-through processing (STP) brokers will often try to connect themselves to many large liquidity providers to improve their own offered liquidity and prices.
Liquidity providers are often large banks and other financial institutions. In forex trading, the world’s largest liquidity provider is the Deutsche Bank, also known as a leading retail and investment bank.
How Do Liquidity Providers Make Money
If you want to know how liquidity providers make money then i must say the liquidity providers make money by matching the buy and sell requests between retail forex brokers and traders. Each liquidity provider streams through a direct feed of executable buy and sell prices to the retail Forex brokers. The retail broker’s No Dealing Desk Price Engine selects the best buy price and the best sell price, which result in the best available spread.
In addition to best price, liquidity Banks are also ranked by their executable prices, order rejection rate, spreads, quoting prices, and latency. Those that provide the best pricing and execution will receive an increase in orders, whereby poor performers will be moved to the end of the line or completely removed from the platform. By holding liquidity Banks to such high standards the brokers are able to provide the best possible customer experience.
Top 10 Forex Liquidity Providers
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Here is list of top 10 Forex liquidity providers in the world, These liquidity Banks dose not provide retail forex trading service so you must open trading account with retail forex brokers to direct your deal to these banks below:
- Bank of America
- Barclays Bank
- Citibank
- Morgan Stanley
- UBS AG
- Deutsche Bank AG
- Goldman Sachs International
- Commerzbank AG
- The Royal Bank of Scotland
- Credit Suisse Group AG
Now you know what is a Liquidity Provider in Forex trading market so tip ForexSQ experts by share this article on social networks please.
