Some 16 months ago when I was signing up with MIGFX, they proudly told me that Credit Suise is their Liquidity Provider. A few weeks ago, another broker proudly told me that they are using UBS as their Liquidity provider and they added that it is our (traders) right to know this. Maybe it is just a sales pitch or plain fact.
Do Traders have the right to know Brokers' Liquidity provider?
Most, if not all, BucketShops would refuse to tell who are their Liquidity providers (or where they unload our positions) claiming it is "CONFIDENTIAL" information.
Confidential vs Transparency.
Is there really anything confidential with this piece of information? Or is this "Confidentiality" just an overused excuse for hiding that they dont even have liquidity providers at all?
Do brokers have any edge at all in keeping this information secret from the other brokers? In my view/opinion, Liquidity Providers love to get more traders and the more traders they have the better the spreads would be. So why would brokers refuse to do this?
Do Traders have the right to know Brokers' Liquidity provider?
Most, if not all, BucketShops would refuse to tell who are their Liquidity providers (or where they unload our positions) claiming it is "CONFIDENTIAL" information.
Confidential vs Transparency.
Is there really anything confidential with this piece of information? Or is this "Confidentiality" just an overused excuse for hiding that they dont even have liquidity providers at all?
Do brokers have any edge at all in keeping this information secret from the other brokers? In my view/opinion, Liquidity Providers love to get more traders and the more traders they have the better the spreads would be. So why would brokers refuse to do this?