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The Broker’s Liquidity Checklist: LX Capital

Whether you are just starting up and have decided to go for a white-label multi-asset broker package, or you are an existing FX/CFD/Crypto broker already, you know that finding excellent liquidity is critical. Your clients demand a wide range of instruments to trade, from Forex to CFDs in commodities, equities, indices, and Cryptocurrencies. Not only that, but they are also looking for the best spreads and best execution.

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Cover graphic for The Broker's Liquidity Checklist: LX Capital, a guide to choosing a liquidity provider

Header graphic for Leverate's broker liquidity checklist on choosing an FX/CFD/crypto liquidity provider

Whether you are just starting up and have decided to go for a white-label multi-asset broker package, or you are an existing FX/CFD/Crypto broker already, you know that finding excellent liquidity is critical.  Your clients demand a wide range of instruments to trade, from Forex to CFDs in commodities, equities, indices, and Cryptocurrencies.  Not only that, but they are also looking for the best spreads and best execution.

So?  For what should you be looking for a liquidity provider?

  • Ensure that your LP can provide you with a wide variety of instruments within a good array of asset classes.  As a competitive standard, Leverate’s LXCAPITAL offers over 2000 symbols for your clients in forex, commodities, indices, stocks, futures, and cryptocurrencies.

  • Check that your liquidity provider can provide all required trading instruments with flexible leverage.  Distinct jurisdictions will require that FX/CFD/Crypto brokers adjust the leverage of certain asset classes to suit the regulatory requirements.

  • Check that your chosen LP is flexible and is willing to custom-create the right combination of symbols and trading conditions for you and your clients.

  • Verify that your liquidity provider is obtaining the best feeds from top-tier 1 financial institutions.

  • Confirm that the technology used by your chosen partner aggregates liquidity by matching the best Bid and Ask pricing to provide the lowest spreads for your FX/CFD/Crypto trading customers.

  • Make certain that your LP is using the best high-end infrastructure for the best stability, consistency, and ultra-fast execution.

  • Ensure that your chosen liquidity system can pair seamlessly with your risk management system.  For example, Leverate’s LXRISK is designed to integrate perfectly with its LXCAPITAL liquidity ensuring the best in security for your multi-asset brokerage and your clients.

  • Check that the liquidity feed will be compatible with your chosen trading platform.  Professional LP’s will have liquidity bridges for such platforms as MT4 and MT5 whereas Leverate’s LXCAPITAL liquidity will integrate seamlessly into their SiRiX multi-asset trading platform.

  • Verify that you will have the latest technology in FIX API connectivity for those discerning clients who demand that you go the extra mile.  LXCAPITAL FIX API can be connected to a broker’s or a fund manager’s infrastructure instantly to get them going efficiently and securely.

Leverate’s LXCAPITAL is available to all multi-asset brokerages as a stand-alone service or in conjunction with one or more of Leverate’s other offerings like the SiRiX trading platform or the LXRISK risk management system.  Multi-asset aggregated liquidity is also included in the SiRiX Venture turnkey broker option for our broker clients looking to take financial advantage of the market at the lowest cost, and with the fastest, most efficient entry.

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Written by

Brad Alexander

Frequently asked questions

What should a broker look for in a liquidity provider?

A broker should look for a wide range of instruments across asset classes, flexible leverage, and willingness to custom-create symbol combinations and trading conditions. The LP should source feeds from tier-1 financial institutions, aggregate liquidity for the lowest spreads, and run on high-end infrastructure for stable, ultra-fast execution. Compatibility with the broker's risk management system, trading platform and FIX API connectivity also matter.

Why does flexible leverage matter when choosing a liquidity provider?

Different jurisdictions require FX/CFD/Crypto brokers to adjust the leverage of certain asset classes to meet regulatory requirements. A liquidity provider that offers all required instruments with flexible leverage lets a brokerage stay compliant wherever it operates.

How does liquidity aggregation lower spreads?

Aggregation technology matches the best Bid and Ask prices across liquidity sources to provide the lowest spreads for FX/CFD/Crypto traders. Combined with feeds from top-tier 1 financial institutions, this gives brokers more competitive pricing for their clients.

Does LXCAPITAL liquidity work with MT4, MT5 and SiRiX?

Professional liquidity providers offer liquidity bridges for platforms such as MT4 and MT5. Leverate's LXCAPITAL liquidity integrates seamlessly into the SiRiX multi-asset trading platform and pairs with the LXRISK risk management system.

Can brokers get LXCAPITAL liquidity without other Leverate products?

Yes. LXCAPITAL is available to all multi-asset brokerages as a stand-alone service or together with other Leverate offerings such as SiRiX or LXRISK. Multi-asset aggregated liquidity is also included in the SiRiX Venture turnkey broker option.

Scale your brokerage today!

CRM & Client Portal, Trading Platform, MT4 & MT5 - All built for you.

Scale Now