Description tag: Liquidity is one of the essential notions for traders. This is why they prefer to join the trading platforms connected to reliable liquidity providers. Who are the best LPs in 2022?
Top 5 Liquidity Aggregators 2022
Liquidity is considered among the crucial factors for investors. Traders can easily purchase liquid assets and sell them by their actual price; this is why this aspect has a significant impact on the financial sphere. When discussing Forex trading, brokerages and cryptocurrency exchanges partner with LPs and connect order books with the best and deepest liquidity pools. Let’s learn more about the best aggregators and main features of LPs.
What are the primary duties of a liquidity provider?
Business founders need to provide favorable conditions to traders/investors when they decide to start a crypto exchange or Forex broker. Newer players expect to get the intuitive user interface, comprehensive functionality, and scope of services, as well as instant order execution.
Top-notch Forex liquidity aggregators connect brokers with the biggest banks and investment funds (Credit Suisse, Morgan Stanley, HSBC, etc.). They execute all Ask/Bid orders directly in a matter of milliseconds; this is why traders can make successful deals.
Liquidity providers offer options for currency pairs, crypto assets, CFDs, indices, metals, and many others. Anyway, traders/investors get their orders filled automatically.
Why is it vital to provide the highest liquidity to traders/investors
New business founders need to figure out why a high level of liquidity is essential for Forex prime brokers and crypto platforms. They are also thinking about other options that do not require cooperating with liquidity providers.
A high level of liquidity provides some vital benefits:
- Zero spreads. If the broker has high liquidity, it cuts the slippage between Bid/Ask prices.
- No price fluctuation. When an investor places an order on the dealing desk, the platform fills it immediately. When the liquidity is low, traders face losses because orders cannot be executed automatically.
- High liquidity retains clients on the trading platform. When the Forex brokerage or cryptocurrency exchange has low liquidity, traders will look for another dealing desk with more convenient conditions.
The key features of top liquidity providers
There are dozens of liquidity aggregators on the market. However, business owners prefer to partner with high-level companies. How to determine the best LP?
- The more markets available, the better. Trustworthy liquidity providers offer top-notch liquidity for FX currencies, crypto assets, ETFs, commodities, CFDs, etc.
- Reliable companies assure traders with instant order execution.
- Low spread. Top crypto liquidity providers provide spreads from $0.01. Meanwhile, there are zero spreads for the Forex.
- First-class customer guidance. Trustworthy LPs provide their clients with round-the-clock assistance. The support team is ready to solve any problems.
Let’s look at the list of the most in-demand liquidity aggregators that help to skyrocket your brokerage business.
1) B2Broker: Innovative and cutting-edge features for any brokerage business
B2Broker is a leading company that connects clients with the best liquidity providers for various symbols: FX, crypto assets, ETFs, commodities, and more. This company guarantees instant order execution (about 12 ms) and offers diverse options for both margin and CFD trading (including leverage multipliers).
Clients may get connected to the most prominent banks and investment funds, creating conditions for conquering the Forex market. B2Broker utilizes innovative liquidity-providing technologies. Clients can get the offer of the top pool to partner within approximately 6 minutes.
Partner with the high-end liquidity aggregators and ensure your order book will meet your customers’ demands. To sum up, we analyze 5 reliable providers of the most superior services that will take your brokerage business to the next level.
2) FXCM Pro: Provide affordable pricing for all business demands
This company provides immediate order execution and top-notch liquidity for private brokerage companies, investment funds, and banks in developing countries. FXCM Pro partners with Level 1 banks and non-banking institutions, as well as other liquidity aggregators. Along with cooperation with prime brokers and technology suppliers, the trustworthy company offers first-class service to its clients.
Liquidity management specialists help to connect brokerages and cryptocurrency exchanges with the deepest liquidity pools. No matter the demands, FXCM Pro provides solutions that will match any business demands.
3) Leverate: Offer the lowest spreads between Bid/Ask quotes
LXCapital, the innovative product made by Leverate, provides liquidity for all types of brokers. This company connects clients’ order books with top global providers to offer affordable quotes on different assets (FX currency pairs, equities, cryptocurrencies, indices, etc.). Clients can control all functionality via the user-friendly interface of the dealing desk.
Further, traders/investors may get their orders filled immediately since the platform is tied to large liquidity pools. Together with cutting-edge technology solutions, LXCapital assures customers with stable service.
4) X Open Hub: Top-notch liquidity for different symbols with advanced features
This company offers liquidity on more than 3000 options, such as FX, cryptocurrencies, equities, ETFs, and more.
X Open Hub provides spreads from $0.00001; this is why traders may get their orders filled immediately (from 33 ms). Another vital benefit is favorable turnover fees from a trustworthy LP.
5) Advanced Markets: Combine safety and transparency to provide liquidity
Advanced Markets is a credible liquidity provider with favorable conditions for any customer (e.g., tight spreads and instant order execution). The trustworthy company connects its clients with the most prominent banking institutions and investment funds that directly execute investors’ orders.
Recently, Advanced Markets released the DMA hub dealing desk. With this feature, the reliable company allows clients to collect their own LP list. It allows creating an innovative trading online ecosystem with constant quotes updates.
Source: https://www.thecoinrepublic.com/2022/05/30/5-best-liquidity-providers-in-2022/