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 trading restrictions, and up to 89% of orders are executed at the requested price or better.
Who Are FXCM's Liquidity Providers?
FXCM's liquidity providers include global banks, financial institutions 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 – 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. FXCM’s Prime Brokers include Citibank N.A., Barclays Bank, PLC and Jefferies Financial Services, Inc.
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's spreads are transparent and some of the lowest in the industry. 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 executable 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.
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.