Liquidity Provider Review: Top 5 London-based Prime of Prime
Choosing a reliable Liquidity Provider (LP) is a key to brokerage success. Fazzaco's survey on 22 forex brokers showed that nearly 50% of them have changed liquidity providers, which is a sign of how difficult it is for a liquidity provider to satisfy its clients.
Forex brokers may take into account plenty of factors, but their main considerations are nothing else but the same: latency, spread/fees, rollover rate, bridge, market data history, regulation, and data report.
As shown in the figure, regulation is the top concern for forex brokers, followed by low latency, low spread/fees, low rollover rate, offering bridge, and market data history.
To give insight to forex brokers when choosing reliable liquidity providers, Fazzaco has listed the Top 5 London-based Prime of Prime below for your reference.
Inception: 1989
As part of CMC Markets Group, CMC Markets Connect offers world-class trading solutions for individual clients and financial instiutions across the globe with a vision to improve access to the financial markets.
CMC Markets Connect offers a wide range of assets including currencies, precious metals, CFDs, futures, and options. Through proprietary technology, the industry-leading company can connect to MT4 through its own bridge. On top of FIX, it also offers REST and JSON API, providing more choices to forex brokers.
CMC Markets Connect is also characterized by its flexibility in fee style (commission/spread) and low min. spread.
Inception: 2008
With 300+ employees in London, Amman, Dubai, and Yerevan, Equiti Capital UK Limited offers currencies, precious metals, CFDs, and futures to customers. To give more convenience to small-sized clients, it only requires a minimum collateral of $500 , and its spread ranges from as low as 0.2 pips for EUR/USD and 0.5 pips for GBP/USD.
The company has secured 2 tier-1 bank prime brokers, and its negative balance protection mechanism is another assurance for clients.
3. FXCM Pro
Inception: 1999
FXCM Pro is the institutional brokerage and trading services arm of FXCM. FXCM Pro offers wholesale execution and liquidity solutions for retail brokers, hedge funds and emerging market banks. Its relationships with 3 tier-1 banks, non-bank liquidity, and technology vendors provide its customers with market access on an unrivalled scale.
FXCM Pro mainly focuses on currencies, and employed its servers in NY4, LD4, and TY3, allowing customers to have a minimum balance of over $250,000 without any asset requirement. It earns revenue through commissions collected from pre-agreed clearing fees. FXCM platforms and liquidity solutions are integrated to major bridge providers, including OneZero, Gold-i, and PrimeXM.
4. IS Prime
Inception: 2014
IS Prime offers full service multi-asset brokerage and execution via it's cutting edge proprietary technology. As a prime of prime, IS Prime provides aggregated pricing sourced from tier-1 institution.
IS Prime offers client reporting portal, risk analytics, and proprietary MT4/5 bridge for clients engaging in services relating to currencies, precious metals, energies, and CFDs. It sets no minimum balance or capital requirement for clients. Its strength in technology, customer service, and innovative products helps it win the 15th place in Financial Times ranking for the fastest growing financial services companies in Europe.
Inception: 1973
Sucden Financial allows clients to utilize its access to meet their hedging requirements for execution or clearing solutions in metals, forex, futures, options, and commodity markets. Through bridges of Integra, Gold-i, Prime XM, and One Zero, it can connect to MT4 and MT5.
Sucden Financial also provides bespoke liquidity by creating and managing custom liquidity pools for each client, which is charged by commission or spread. Its LD4, NY4 and TY3 data centres enable low latency access to the liquidity pool.
The related data come from the official website of each liquidity provider. Fazzaco has endeavored to keep information displayed accurate, but we cannot guarantee this article is up-to-date and error-free. All the content if provided for general information purpose and should not be taken as or constitute any form of professional advice or suggestion.
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