At the heart of FXCM's business is our commitment to offer clients competitive spreads on major currency pairs. The execution model provides traders with transparent buy and sell prices streamed from over a dozen global institutions 24 hours a day, five days a week.
Who Are FXCM's Liquidity Providers?
FXCM's liquidity providers include global banks, financial institutions, prime brokers, and other market makers. FXCM LLC currently has 17 liquidity providers: Bank of America N.A. – Barclays Bank, PLC – BNP Paribas – Nomura International, PLC - Citadel Securities LLC – Citibank N.A. - Morgan Stanley & Co., LLC - UBS AG - Deutsche Bank AG – Effex Capital, LLC – Goldman Sachs International – KCG Europe Limited and Commerzbank AG. Liquidity providers that stream pricing through the FastMatch Electronic Communication Network include: The Royal Bank of Scotland plc – RBC Capital Markets - Société Générale Corporate & Investment Banking – Credit Suisse Group AG.
How Do Liquidity Providers Compete?
Each liquidity provider streams through a direct feed of executable buy and sell prices to FXCM. FXCM's No Dealing Desk Price Engine selects the best buy price and the best sell price, which result in the best available spread. There is no markup added to FXCM's Standard No Dealing Desk account type, making our spreads transparent and some of the lowest in the industry.
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.
Learn more about FXCM's No Dealing Desk Execution.
What Do Liquidity Providers See?
When a trader places an order through FXCM's Straight-Through Processing system, 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.