What are Liquidity Providers?
The major players have multiple liquidity providers -- banks and large ECNs. The smaller players may just have one, two, or three relatively small providers. Information about a broker's liquidity providers is sometimes held very close to the vest. Some of them advertise, others will simply not tell you any meaningful specifics.
Tip: Do not be overly impressed by a broker who says she has 15 liquidity providers; they may all be very small.
By Michael Duane Archer