Expanded liquidity aggregation: a broker’s choice

liquidity aggregation

How liquidity aggregation works

Liquidity aggregation implies the presence of counter orders to buy or sell the underlying asset at the current market price.

An aggregation center (a.k.a hub) is a software product that transfers the quote flow from the liquidity provider to the client’s terminal (A-book model). If a broker uses the B-book model, liquidity is provided by the broker itself.

Aggregation scheme:

  1. Quotes offered by the LP are placed in the market depth.
  2. If a trader opens a limit order, the bridge selects a counter order of a suitable volume and executes it.
  3. If a trader opens a market order, the bridge determines the provider that offers the best price, then sends a request to confirm the trade and fills the order.

The quality of a broker’s work is determined by the extent to which the liquidity provided to the client corresponds to his trading volume.

What functions do hubs perform?

A hub or liquidity aggregation center performs the basic functions of providing liquidity to clients, as well as managing risks and automating the work of a forex broker.

Here are just some of the advanced functions performed by hubs:


  • Flexible adjustment of customer transaction distribution between A/B-books depending on the percentage or the set volume;
  • Setting up groups and rules for redirecting transactions between A/B models depending on market conditions.

Issues with quotes

A hub provides information on quotes for each asset and automatically switches to another supplier if they are not available.

Monitoring and reporting:

  • Information panels;
  • Viewing the log;
  • SQL database;
  • Trading risk reports.

Crypto liquidity aggregation – advantages for forex brokers

Due to the high volatility in 2020-22, the crypto market has gained great popularity among traders. That’s why forex brokers are actively promoting crypto asset trading services and competing with exchanges.

A hub can work as a crypto liquidity aggregator, while the broker receives significant benefits:

  • Attracts new clients with available margin requirements;
  • Increased trade turnover;
  • Increased customer loyalty and company scalability.

How to choose a provider

In order for clients to have access to 100% liquidity, it is important to correctly assess hub quality:

  • How many crypto exchanges the aggregator supports;
  • What advanced aggregation features are available;
  • Availability of a trial period for software evaluation.