Things TO Keep In Mind While Choosing A Good Liquidity Provider


Liquidity is the common term used in the Financial market. We all know that in the Forex industry Liquidity is the prime thing to be concerned about as more deep liquidity is more efficient your transactions will be and you will be one among the top brokers.

Lets here discuss some of the important points that one should always keep in mind while choosing a good Liquidity Provider.

Liquidity Provider must be Authentic :
It is very important to have a Liquidity Provider who is regulated as well as authentic. It is very important to cross check and get the Liquidity Provider’s license verified. If your Liquidity Provider is authenticated then there is a chance of no false treatment by the other party. Also there is a high chance of trust when you work with the regulated liquidity provider and hence we would ask you to do a good research before choosing your liquidity provider.

You should always look into the pricing offered by a liquidity provider. Because the spreads offered by your liquidity provider should be competitive spreads in the market with low commission based. This is very important as price is the one of the most important things to take care of. A good price hack can make your business boom so before going for any liquidity provider keep this point in your mind.

Funds security:
Making sure that your customer’s funds are safeguarded is a big concern. Therefore as a good forex broker, it is your responsibility to ensure that the funds are kept with security. Before being into business please make sure that the liquidity provider you are going to be in business with maintains transparency and is trustworthy also he must have a good record in the market. It is your customer’s hard earned money, hence it is completely your responsibility to take care of your client’s funds.

Technology Provider:
You should look for a Liquidity Provider who must be able to give you the best of the technical services in the market such as MT4/MT5 bridge connections, FIX protocol and APIs etc.


Yeah, you described it all right.
It's a brief description of the features, but it really shows the whole point.
In general, every trader should understand these points, because they are the basis of the market. And you should not limit yourself to just knowing the strategies, you must understand all the mechanisms.

John perry

Understanding where a broker gets there liquidity and the importance is critical for there long term running and credibility


Yes, traders should definitely be well acquainted with the terms and data they see and hear. So, I think that such reviews are really useful for beginners and those traders who have not yet fully understood the market.
Well done!


Private, 1st Class
Briefly and basically... And this is something that can really dramatically affect the activity of each particular trader, so it is worth to deal with it separately and be sure to clarify this information before you start working at a brokerage company...


Private, 1st Class
is there a way to look at the liquidity within a broker and how would i do that?


It is important to choose a broker which suits best to your trading strategy. This is why it is quite important to conduct good research of brokers on the market and see which one suits best for your trading needs. Start research with legitimate brokers and stick with those


In the past, I have paid a lot of attention to this issue because it is important in the analysis and planning of actions in the market. Yes, every trader definitely has to deal with it in order to act more purposefully and actively.