Best Forex brokers by trading volume and their impact on liquidity
  • Lily Chen
  • 20.11.2023

Liquidity is a critical factor for successful Forex trading. It means the ability to trade large volumes of financial instruments quickly and at minimal cost.

Brokers play a key role in providing liquidity by acting as intermediaries between traders and the interbank foreign exchange market. Let's take a closer look at which Forex brokers are the leaders in terms of trading volume on the Forex market and how they influence liquidity.

The largest Forex brokers by trading volume

XM Group is one of the market leaders, founded in 2009 in Cyprus. It is a part of the holding Trading Point Holdings Ltd. It has representative offices in different countries - from Great Britain to China. XM Group offers trading at the lowest spreads on more than 1000 instruments - currency pairs, stocks, commodities, indices and crypto-assets. The broker is suitable both for beginners thanks to training materials and demo accounts, and for professionals with the ability to trade large volumes.

OANDA is an international broker founded in 1996 in the USA. It is known for its strict client confidentiality policy. OANDA does not disclose personal information about traders to third parties. The broker uses its own reliable trading platform fxTrade with advanced analytical and trading capabilities. OANDA is focused primarily on beginners with small capital, offering them favourable conditions.

Hotforex is a broker owned by HF Markets Group, registered in St Vincent and the Grenadines. The company was founded in 2010 and has offices all over the world. Hotforex is characterised by reliability and offers trading in a wide range of instruments - currencies, metals, stocks, indices, crypto and commodities. The broker attracts clients with competitive conditions, spreads, bonuses and speed of order execution.

AVATrade - Established in 2006 in Dublin, has subsidiaries in various countries. Licensed and regulated in the EU, Australia and South Africa. AVATrade stands out for its wide range of traded assets - more than 1000 instruments. Clients can trade via MetaTrader 4/5 or AVATradeGo mobile applications. The broker attracts novice traders with convenient platforms, low deposits and training.

Pepperstone is an Australian broker founded in 2010 in Melbourne. It has subsidiaries in different countries of the world. Pepperstone has established itself as one of the most reliable and popular brokers. It offers trading in more than 150 instruments - currencies, indices, commodities, crypto and stocks. The broker is characterised by high quality order execution and customer support.

IC Markets is an Australian broker founded in 2007 in Sydney. Licensed and regulated by ASIC. IC Markets specialises in active traders working with large volumes. The broker offers the lowest spreads, fast execution and a wide range of instruments. There are also training materials for beginners.

Admiral Markets is an international broker founded in 2001 in Estonia. It is regulated in the EU, Australia and other jurisdictions. The broker accepts clients from all over the world and is renowned for its reliability and stability. Admiral Markets offers all popular trading platforms and more than 2000 instruments for trading. There is training for beginner traders. is a legendary broker with a 20-year history, founded in 1999 in the USA. It is regulated by CFTC and NFA. is characterised by stability and reliability. The broker offers trading in more than 80 currency pairs and CFDs on stocks, commodities and indices. There is negative balance protection and guaranteed order execution.

How Forex brokers affect liquidity in Forex

The more clients and trading volumes a broker has, the higher the liquidity as order flows are pooled. Large brokers are able to execute orders even for hundreds of millions of dollars almost instantly and without significant impact on market prices.

Brokers' advanced technology allows them to execute trades at the most favourable prices as quickly as possible. The use of algorithmic and high-frequency trading strategies increases the speed of reaction to changes in the conjuncture.

In addition to speed, the reliability of the broker is important - the ability to provide guaranteed and stable access to market liquidity in any conditions. For example, during volatility or gaps.

Liquidity is also influenced by the broker's efficient order routing systems for selecting the optimal counterparty. And the use of modern technologies of replication and distribution of flows between liquidity providers.

So, choosing a reliable and technologically advanced Forex broker with an extensive client base is critical to ensure the required level of liquidity in the Forex market. This will allow you to trade quickly, with the lowest costs and expenses.

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