FXCM Liquidity Providers
At the heart of FXCM's business is our commitment to offer clients competitive spreads and Enhanced Execution. Enhanced Execution means no re-quotes, no stop/limit restrictions, and up to 89% of orders are executed at the requested price or better. Learn More
Who Are FXCM's Liquidity Providers?
FXCM's liquidity providers include global banks, financial institutions, prime brokers, and other market makers. FXCM Group currently has a number of liquidity providers, including but not limited to: – Barclays Bank, PLC – Citadel Securities LLC – Citibank N.A. – Deutsche Bank AG – Jefferies Financial Services, Inc. – FASTMATCH INC – XTX Markets Limited – UBS AG - and Morgan Stanley & Co., LLC. FXCM also has a number of Liquidity providers that stream pricing through the FastMatch Electronic Communication Network.
How Do Liquidity Providers Compete?
Each liquidity provider streams through a direct feed of executable buy and sell prices to FXCM. FXCM's Price Engine selects the best buy price and the best sell price, which result in the best available spread. FXCM is the counterparty to all trades that a client undertakes. In no way does a liquidity provider act as the manufacturer or counterparty in the context of any transaction with a client.
In addition to best price, liquidity providers are also ranked by their indicative 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 our liquidity providers to such high standards, we are able to provide the best possible customer experience. Learn more about FXCM’s Execution Risks.
What Do Liquidity Providers See?
When a trader places an order, an exact matching order is sent from FXCM to the liquidity provider that is providing the best price. For example, a buy order in the example above would go to liquidity provider #2. To the liquidity provider, all orders appear as Market Orders from FXCM and contain no information about the trader. Since your stops, limits, and your entry orders are invisible to these price providers, we create an environment free of price manipulation. When we combine this with no re-quote trading you have the opportunity to confidently trade all market conditions, even during key news events.
Execution Disclaimer: FXCM is your counterparty to every transaction. FXCM aggregates bid and ask prices from a pool of liquidity providers and is the final counterparty when trading forex/CFD on FXCM's trading platform. Note: Contractual relationships with liquidity providers are consolidated through the FXCM Group, which, in turn, provides technology and pricing to the group affiliate entities.
Jefferies: FXCM uses Jefferies Financial Services Inc (JFSI) as a prime broker for FX trading and as a price source for FX trading. FXCM pays JFSI a prime broker fee for the prime broker services. Leucadia National Corporation is a common owner of both FXCM and JFSI.
FastMatch: FXCM may obtain pricing and liquidity from the FastMatch aggregation platform for spot FX and metals. In May 2017, FXCM entered into an agreement to sell its equity interest in FastMatch Inc. The transaction closed in August 2017. FXCM is now entitled to a future potential payment based on the overall volume traded by all participants on the FastMatch platform. Thus, the volume that FXCM executes via the FastMatch platform until approximately June 2018, will contribute to the overall volume traded on the FastMatch platform and may potentially generate a payment for FXCM. As of August 1st, 2017, FXCM’s trading volume does not make up a significant portion of the overall volume traded by all participants on the FastMatch platform. As with all of FXCM’s price and liquidity sources, FastMatch is evaluated in accordance with FXCM’s Best Execution standards.