Stronger Broker–Liquidity Provider Partnerships Are Reshaping FX Liquidity

Key Takeaways:

• Brokers gain more competitive pricing and LPs receive cleaner, more predictable flow with a more collaborative approach
• A one-stop partnership with a LP helps brokers consolidate risk, relationships, and execution channels resulting in more efficient, cost-effective trading experience
• Technology is important, but trust, communication, and structure matter more

In the July issue of e-Forex, Andrea Michael, Director of Institutional Sales at StoneX Pro, shared her perspective on how the broker–liquidity provider (LP) relationship has changed. She didn’t just describe a shift in mechanics, she described a shift in mindset.

“The model has moved beyond simply streaming prices,” Michael said. “It’s about aligning the right flow with the right liquidity providers to ensure execution quality.”

That alignment, she explained, requires active management. Scale still plays a role, but the consistency and clarity of flow are just as important now. Without that, the relationship between broker and liquidity provider can become fragile, sometimes invisible, until something breaks.

Improving FX Liquidity Management with Better Technology

In the past, brokers could rely on liquidity providers to handle most of the heavy lifting. That’s no longer the case.

“Technology has transformed liquidity provision from a reactive process into a strategic, data-led discipline,” said Michael. Brokers are under pressure to know their flow, know their clients, and make sure they’re connecting with the right LPs; because if they don’t, their execution will suffer.

At StoneX Pro, the team works closely with brokers to identify flow mismatches early. That way, they don’t get passed downstream where they’re harder to fix – and more damaging to pricing. “We’ve embraced this shift,” she said, pointing to how StoneX Pro uses aggregation platforms and outsourced analytics to help brokers map flow more precisely.

How Liquidity and Risk Consolidation Benefits Brokers

Brokers today are juggling more than just liquidity. There’s infrastructure, risk, onboarding, reporting, and – especially for smaller firms – challenges securing access to top-tier LPs. Liquidity providers like StoneX Pro offer a way to bring those moving parts together.

“These relationships can provide access to credit lines, clearing, and customised liquidity, all through a single account,” Michael explained. “That reduces complexity and improves capital efficiency.”

A single point of access doesn’t just streamline reporting and reduce margin fragmentation. It also gives brokers a wider view – and more control – over how risk is handled. For the end client, that means faster onboarding, tighter pricing, and more dependable execution.

“Execution quality improves when brokers can curate liquidity and manage risk centrally,” Michael said. “It’s not just about speed; it’s about knowing exactly where the risk sits and having the structure to manage it.”

How Communication Builds Broker – LP Trust

Ask anyone in FX what’s changed in the past five years, and they’ll talk about data. But data isn’t the full picture.

“Stronger personal relationships and clearer communication between brokers and LPs can unlock more tailored, responsive partnerships,” said Michael. In her view, technology enables the work, but trust and transparency still drive outcomes.

She described how deeper partnerships – especially with brokers running hybrid or principal models – require more than just tools. They need a shared understanding of goals, risk tolerance, and business strategy. That’s not always easy to formalize, but it’s critical if both sides want to build flexible, long-term solutions.

“There’s still room for deeper collaboration,” she said. “Especially around product development, liquidity customization, and integration.”

Preparing FX Brokers for Risk and Regulatory Shifts

The FX market continues to move fast. But for brokers, the race isn’t about speed alone; it’s also about readiness.

At StoneX Pro, Michael and her team are helping brokers prepare by offering not just liquidity, but structure: consolidated tools, strategic engagement, and a flexible framework that can adapt as business models evolve. That’s especially valuable for firms dealing with rapid change – whether it’s regulatory, client-driven, or technology-led.

“Being ready means knowing who your partners are,” she said. “And making sure the relationship is built to last.”

Access the full article in e-Forex

Andrea Michael shares more about the tools, structure, and conversations behind today’s smarter liquidity partnerships.

Read the full story in e-Forex

Andrea Michael is Director of Institutional Sales at StoneX Pro, where she helps brokers align liquidity strategy with execution outcomes.

StoneX Pro delivers comprehensive FX trading and hedging solutions for institutions and corporates in the global markets. Drawing on our FX market-making capabilities, we provide efficient, secure liquidity access through simplified turnkey solutions. Backed by StoneX Group Inc. (SNEX), a fully regulated and Moody's/S&P-rated company, StoneX Pro maintains rigorous compliance and governance standards.