Jump to content
Advertise your business on Top Gold Forum today for as low as $100 per month. Contact us.
Sign in to follow this  
FxNet

The Importance Of Knowing Your Broker's Liquidity Provider - Fxnet

Recommended Posts

Many forex brokers (enclosed market-markers), are now trying to jump into the institutional business, looking to provide liquidity (execution venue) to smaller brokers, aiming to increase their volumes and therefore, profits. However, due to the fact that these liquidity venues are market-makers by nature, consequently, they will want the smaller broker having the omnibus account with them to lose its funds. It's the big fish eating the smaller fish kind of situation!

Most liquidity venues treat the smaller brokers as retail clients and will start cutting its wings slowly (by using widely known little tricks such as re-quotes, rejections, slippage, etc), leaving no room for that account to survive. The smaller brokers' shortage of funds and daily struggle to survive, will force them to cut-back on ad-campaigns and technological advances and consequently, prevent them from providing good service and execution to their clients causing both broker and clients to become the sad victims of these 'almighty liquidity monsters'.

 

After doing a little bit of research, I am sure you will find out who the most credible liquidity providers are and when choosing a forex broker, it's best to always ask: Who is your liquidity provider?

Personal suggestions:

 

-Brokers getting liquidity from another retail broker, no matter how attractive the low spreads are, is a dangerous choice (as described above).

-Opt for a broker getting liquidity from a serious liquidity venue who does not normally accept retail clients (individual traders).
-Even better, go for a broker who gets liquidity from an STP (Straight Through Processing) Liquidity Venue, simply because there will be no conflict of interest between the broker and the venue.

 

At the end of the day, it all comes down to you and who you think fits you the best, always based on your preferred methods of trading.

 

Make an informed decision, choose wisely and best of luck with all your trading activities!!!


Kind regards,

The FXNET Team

www.fxnet.com

Share this post


Link to post
Share on other sites

The US commerce department said that Gross domestic product (GDP) increased at a 1.5 percent annual rate after expanding 3.9 percent in the second quarter, the Commerce Department said on Thursday. Economists however expect growth to pick up in the fourth quarter given strong domestic fundamentals.

The number of individuals filing for initial jobless benefits in the week ending October 24 increased by 1,000 to 260,000 from the previous week’s total of 259,000. Analysts had expected jobless claims to rise by 4,000 to 263,000.

USD/JPY was 0.16 percent lower at 120.89, USD/CAD was almost unchanged at 1.3238. The pair was expected to find support at 1.3085 and resistance at 1.3334.

Following the releases EUR/USD added 0.19 percent to 1.0941.

GBP/USD was at 1.5256, USD/CHF lost 0.29 percent to 0.9914. A report by the Bank of England showed that the total net lending to individuals increased by 4.9 billion pounds last month more than the expected 4.4 billion pounds.

AUD/USD lost 0.40 percent falling to 0.7089 and NZD/USD lost 0.12 percent to 0.6694.

The US dollar index which measures the greenback against a basket of major currencies was steady at 97.61.

Following the releases EUR/USD added 0.19 percent to 1.0941.

EUR/CAD was 0.10 percent higher to 1.4425.

Crude oil for December delivery lost 1.34 percent on the New York Mercantile Exchange during European morning hours on Thursday, Brent oil for December delivery on the ICE Futures Exchange lost 1.15 percent to 48.48 dollars a barrel.

The US Energy Information Administration (EIA) said that crude inventories were higher by 3.37 million barrels a week, and gasoline inventories decreased by 1.1 million barrels compared to expectations for a decline of 0.9 million barrels. Distillate stockpiles fell by 0.3 million barrels.

Gold for December delivery on the Comex of the New York Mercantile Exchange lost 1.88 percent trading at 1,154.000 dollars a troy ounce.


Kind regards,

The FXNET Team

www.fxnet.com

Share this post


Link to post
Share on other sites

Because of high liquidity, I get no order rejection facility from regulated broker TradingBanks! In addition, I never faced requotes problem during high voltage news session! So, I’m enjoying my live trading a lot as a scalper! Yeah, scalping is my favorite trading style but I wanna use long time trading styles too, just waiting for a healthy trading equity actually!

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this  

×