Thread: PrimeXM Broker - Market Makers or Liquidity Providers?

To whom it concerns A question. When a broker's MT4 terminal's IP is situated at PrimeXM, does this mean they're connected to actual liquidity providers or are they market makers?

Metatrader 4 was at first made for market maker brokers which will internalise all of the flow as in they will profit from you when you lose. Meaning the platform used to be targeted for novices or gamblers. They used to have all kind of adorable tricks like the infamous virtual trader plug in. Nowadays, after gaining popularity among traders all over the world we've bridge suppliers that attempt to connect mt4 into the true interbank market by way of example PrimeXM, OneZero etc.. The majority of the top retail brokers have A and B book. A book is where they deliver the orders into the liquidity suppliers and B book is where they internalise the flow. They understand the majority of their customers will lose therefore it makes more sense to have the flow themselves. That is okay if they don't mess up with all the prices.

Most like metatrader because of the simplicity of the platform. Today, metatrader is not just for beginners since it may be used to connect into the interbank via the bridge. Personally, when I've graduated from retail trading I would still use metatrader as my GUI and connect it into an aggregator. PrimeXM is among those bridge which connect MT4 to liquidity suppliers via FIX API. I expect metatrader 6 will be the real deal with all aspects being cared for. They need to, since ctrader and protrader are gradually gaining traction. Metatrader 5 was a disappointment for me personally because of FIFO. Many traders want the hedging capability. If they had just not apply FIFO to be fixed in MT5 I believe many traders would have migrated.

Liquidity providers may be banks or non bank firms like virtu, citadel etc.. They're market makers and will internalise customers flow and cancel them with customers and each other. In terms of liquidity suppliers this is of no concern because they have big balance sheets to internalise the flow. Internalisation from the banks are important for the market to ensure its efficiency. Whenever there are no 1 trading, banks have the duty to ensure the market will consistently run by accepting buyers and sellers even through the difficult periods.

I expect that helps

PrimeXM is a tech provider. Do not shoot at the technology provider.

I emailed PrimeXM and they answered in almost no time. I received 2 replies actually and since there's absolutely no sensitive info, I am posting the replies here:

Dear Amin,

Thanks for the enquiry.

To be honest we do supply WL services on MT4, nevertheless our main business is providing Bridge Aggregation services to Banks, LP's, FX Brokers Fund/Asset Management firms.

Any Broker that is connected via our WL solution must have at least 1 actual LP connected for Trading and Pricing, (although many have multiple LP's/Banks). But, it is up to this Broker themselves whether they STP all orders or possess a mixture of B and A Book. So there's a possibility for a Broker to market make.

You would have to speak to the individual Brokers themselves to enquire whether they're a complete STP Broker or not. We cannot disclose such information because of customer confidentiality. In the conclusion of the day provided that you get the best spreads and fast implementation from one or more one of these Brokers, in fact it makes no difference to the individual traders whether they're market making or not.

I hope this info has been of help.

Kind regards




Hi Amin,

Thanks for your emailaddress.

You're correct, PrimeXM do provide White Label solutions amongst other providers.

But, PrimeXM frees ourselves with providing Banks/Liquidity Providers/Forex Brokers/Money Fund Managers one of the fastest Bridge Aggregation systems available on the market (XCore). Various financial institutes acquire PrimeXM's XCore system internally, to provide the highest level service to their clients, in terms of execution and connectivity services.

Our XCore supports 85 FIX API Connections into various Banks and Liquidity Providers, for which the XCore customer (FX Broker, Money Manager, Bank etc) can source liquidity directly and negotiate their own terms. PrimeXM is not a liquidity provider, our platform supports over 85 different Banks/LP's, but we don't actually get involved or interfere together with the liquidity side of things. From the 85 Banks and LP's, PrimeXM works very closely together with 10 Preferred Liquidity Partners, for which we are their preferred technology vendor, and they're our preferred partners in regards to boosting liquidity services, to our XCore clients.

PrimeXM bring no conflict of interest to our clients who acquire our aggregation services. We sit transparently in the center, nor control the Banks/LP's on both sides (XCore client Bank/LP). Hence not charging the Banks, the customer is able to negotiate lower spreads and lower commissions per million, by using our XCore system.

I cannot go over the installation and configuration settings of our clients, because of Data Protection motives. But, I can confirm that a few of our clients are in reality MM (Market Makers) and we have other clients who act as a complete STP Broker and Straight Through Process (STP) the orders to market.


Best Regards

It is the belief of some (which admittedly might not be correct) that there are no brokers that are 100% STP. Even if technically they do pass all orders throughout the bridge you will need to ask where the orders have been handed . It is likely that the orders have been passed on to a market maker broker that is possessed by the STP broker. It is also possible that pure STP brokers pass all trades via a bridge to a market maker which provides them a share of their customers net losses. Ok, this is speculation but it just goes to show that there is no point for traders to get too hung up on this point.

The bottom line is that you never really understand what is happening and even the bridge providers don't have a 100% clear image. All I know is that as long as the broker offers market execution (in MT4), does not requote youpersonally, and executes your trades within milliseconds you can egorize them as a STP broker. Other than that provided that brokers are fair and honor their trades it really shouldnt make any difference so that its probably best to not get too hung up on the exact process.

There is manual by Metaquotes The best way to begin brokerage and they obviously saying that as a retail broker you have to take other hand to get a few or many or your clients. Since pure STP model necessitates enormous volumes to make money.
I'd say it's just a question that proportion of orders stays with broker and that percentage is transferred somewhere else - to so called LP's or even
MM for one broker. In my opinion - all FX relies on market making.

Originally Posted by ;

A curious question to whom it concerns. When a broker's MT4 terminal's IP is loed at PrimeXM, does it mean they are connected to actual liquidity providers or are they market makers?

PrimeXM is the bridge to MT4 - what occurs before the bridge connection is where the LP's sit or don't.

I really dont understand the way the market functions. There are so many pools, bridges, providers to liquidity, etc, etc.. I can not envision that Barclays such as has linked to all these so called pools, providers.... Everybody asserts that has its LP panel of well known banks. I don' t believe in it. It is a big black box. Could be what's more simle? Could be everybody is Market Makers and use price feed for indiive purposes?