Forex Fact of the day!
An amazing 95% of Forex transactions are executed for trading purposes.
The remaining 5% of the currency exchange transactions are executed for purposes of commerce, meaning industry and tourism.
Over 6 trillion USD of transaction a day by investors. But who is trading such amount of volume every day?
Liquidity Providers – the Market Makers
There is no central of Foreign Exchange market in the world, but the flow of market is created by mega banks and some huge institutions.
They are the Market Makers, or also called as Liquidity Providers.
FX brokers get liquidity from these banks or institutions and shows the provided market prices on their trading platforms.
Then, traders who have the access to the trading platform gets to trade the financial instruments available on the platform.
The liquidity providers are transacting millions of trades at each moment. Thanks to their trading activity, we can take advantage of price movement and make profits out of them.
Trades sent directly to Liquidity Providers
When you choose a FX broker, it is very important to know how these brokers’ platforms are connected to their liquidity providers.
The condition maybe called as STP(Straight Through Processing) or ECN(Electronics Communication Network) and etc.
Depending on the connection quality, your trading result can be dramatically changed.
HotForex offers MT4 with direct connection to liquidity providers without any interference.
With the several top tier banks connected to the platform, HotForex’s execution quality is very competitive among hundreds of FX brokers in the world.
Find more details of the service of HotForex in their official website!