Liquidity is a common term used in the Financial market. We all know that in the Forex industry Liquidity is the prime thing to be concerned about as more deep liquidity is more efficient your transactions will be and you will be one among the top brokers.
Lets here discuss some of the important points that one should always keep in mind while choosing a good Liquidity Provider.
- Liquidity Provider must be Authentic :
It is very important to have a Liquidity Provider who is regulated as well as authentic. It is very important to cross-check and get the Liquidity Provider’s license verified. If your Liquidity Provider is authenticated then there is a chance of no false treatment by the other party. Also, there is a high chance of trust when you work with the regulated liquidity provider and hence we would ask you to do good research before choosing your liquidity provider.
You should always look into the pricing offered by a liquidity provider. Because the spreads offered by your liquidity provider should be competitive spreads in the market with a low commission based. This is very important as price is one of the most important things to take care of. A good price hack can make your business boom so before going for any liquidity provider keep this point in your mind.
- Funds security:
Making sure that your customer’s funds are safeguarded is a big concern. Therefore as a good forex broker, it is your responsibility to ensure that the funds are kept with security. Before being into business please make sure that the liquidity provider you are going to be in business with maintains transparency and is trustworthy also he must have a good record in the market. It is your customer’s hard-earned money, hence it is completely your responsibility to take care of your client’s funds.
- Technology Provider:
You should look for a Liquidity Provider who must be able to give you the best of the technical services in the market such as MT4/MT5 bridge connections, FIX protocol and APIs, etc.