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.1 Learn More
Who Are FXCM's FX Liquidity Providers AND PRIME BROKERS?
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 – Morgan Stanley & Co., LLC – and Jefferies Financial Services, Inc. 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.
Liquidity providers are also ranked by their order rejection rate, spreads, and latency. FXCM constantly evaluates and monitors the ranking of our liquidity providers and takes any appropriate actions if necessary aiming to provide best available price to our clients. Through assessing our liquidity providers’ execution performance together with our internal risk management framework, FXCM may; offset the trade directly and immediately with external counterparties, match the trade against that of another client, batch and offset multiple trades in blocks, or chose to hold the other side of the trade. By holding ourselves and our liquidity providers to such high standards, we strive to provide the best possible customer experience.
What Do Liquidity Providers See?
When a trader places an order and if FXCM chooses to hedge the positions immediately with liquidity provider(s), 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.
1 As per the November 2018 Slippage Statistics Report
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.
FXCM uses Jefferies Financial Services Inc (JFSI) as a prime broker for FX trading and as a liquidity provider 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.