Liquidity Providers: Who Actually Supplies the Price in Your Terminal
The chain from bank to retail client, what a prime broker and an aggregator do, and why two brokers show different quotes at the same instant.
The currency market has no central exchange. Price emerges from quotes posted by large participants and reaches you through a chain of intermediaries.
The chain
Top-tier banks are the largest FX market makers, quoting each other and institutional clients.
Prime brokers give access to those prices to firms without direct credit lines to the banks.
Non-bank market makers are specialist firms that quote alongside banks and often show tighter spreads at retail size.
The retail broker aggregates several streams and passes the best bid and ask to you, adding a markup or charging commission.
Why prices diverge
Every broker has its own provider set and aggregation logic. Hence fractional-pip differences in quotes and candles that open at slightly different levels. For the same reason, comparing two brokers' charts tick by tick is pointless — they are not meant to match.
What it means for you
The more providers a broker has, the less its spread widens in difficult hours: if one pulls its quote, the others hold the price. A broker with one or two providers shows a tight spread in calm conditions and blows out on news.
Brokers rarely disclose provider counts, but there is an indirect test: watch spread stability between 15:30 and 16:30 London time, when US data lands.
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Frequently asked questions
Who are liquidity providers?
Major banks, non-bank market makers and ECN venues that continuously post bid and offer prices. A retail broker receives their quote streams and passes them to clients.
Why do broker quotes differ?
Forex has no central exchange. Each broker aggregates its own set of providers, so prices at the same instant can differ by fractions of a pip.
What is an aggregator?
The software layer that collects quotes from several providers and picks the best bid and ask. More providers means a tight spread holds together more reliably.
- Min. deposit
- $50
- Spread
- from 1.0 pip (Standard STP)
- Commission
- $3 per lot per side (Raw ECN)
CFDs are complex instruments with a high risk of losing money