Forex traders rely on price movements to inform their decisions. One of the key functions of a global trading platform is therefore to deliver timely and consistent pricing, while making clear how quotes are formed and orders are executed.
How do prices reach the screen of a trading terminal? Beyond the market forces that affect supply and demand, the journey involves liquidity providers, pricing technology and the broker’s execution arrangements.
In this article, we explore the Forex price journey and explain how the practices and technologies used by brokers can contribute to accurate and reliable pricing.
Forex is a decentralized market, but a range of specialized technology providers support the price feeds used by retail brokers. Panda Trading Systems, for example, provides pricing technology and has publicly described a technology partnership with Moneta Markets.
Where Forex Price Feeds Come From
Unlike company stocks traded on a centralized exchange like the New York Stock Exchange, the spot Forex market is decentralized. There is no single entity deciding the official price for EUR/USD, for example.
Prices form naturally based on supply and demand, and they come from large participants like banks, non-bank market makers, and institutional liquidity providers. Ideally, a retail broker receives bid/ask quotes from multiple sources and distributes pricing to traders.
Some brokers source liquidity from one group of banks and liquidity providers, while others rely on different providers. Differences in liquidity sources, timing and broker markups can produce different quotes for the same currency pair. A price difference alone does not establish an executable arbitrage opportunity.
The three main players participating in price discovery include:
Major banks: Global banks such as JPMorgan, Citi, Deutsche Bank and UBS are important participants in FX liquidity provision and price discovery.
Non-bank market makers: Electronic trading firms, including high-frequency firms, also provide liquidity and contribute to FX price discovery.
Other banks and institutional liquidity providers: Smaller banks and other institutional participants also quote prices and supply liquidity, with their roles varying across currencies, venues and client segments. BIS research on the foreign exchange market describes how major banks’ role has been challenged by high-frequency trading firms in a fragmented electronic market.
Besides these, there are Electronic Communication Networks (ECNs) that match buy and sell orders directly from different market participants. Institutional venues, such as EBS Market by CME Group and LSEG FX Matching, bundle together orders from banks, non-bank market makers, and other participants and have a direct influence on price discovery.
Speed and Stability Matter for Real Time Pricing
Online trading platforms depend on reliable price feeds and infrastructure that can process and distribute quotes consistently. Alongside the choice of pricing sources, the technical setup can affect quote timeliness, system availability and execution speed.
Access to multiple liquidity sources can support a reliable feed. Some brokers offer accounts marketed as ECN accounts, including Moneta Markets. However, the account label alone does not establish direct access to an institutional venue or guarantee tighter spreads or better execution. The relevant account terms and execution policy should explain how pricing and orders are handled.
Brokers also use specialized pricing and execution technologies, such as those offered by Panda Trading Systems and oneZero. Depending on the implementation, these systems can perform several functions, including:
Data aggregation: Collecting quotes from multiple connected sources in real time.
Normalization: Converting different data formats into a common standard for processing and comparison.
Quote selection: Comparing eligible bids and offers from connected liquidity providers, subject to available liquidity, trade size and broker configuration.
Alongside suitable liquidity sources, brokers need technology to aggregate, validate and distribute pricing. Speed and stability matter, but displayed quotes may differ from final execution prices because of market movements, available liquidity, latency or execution arrangements.
Reliable Pricing Requires Transparency
Another key aspect of ensuring quality price feeds is transparency. Traders should understand how the platform connects them to liquidity providers and how it handles pricing and client orders.
Indeed, reliable pricing depends on transparency as well as speed. In January 2025, the Global Foreign Exchange Committee updated the FX Global Code, with changes that increase transparency around certain types of FX transactions and the use of client-generated data on electronic trading platforms. It also published enhanced Disclosure Cover Sheets for liquidity providers and platforms. Clear disclosure about how platforms and liquidity providers operate is part of what makes the prices a trader sees trustworthy.
These changes aim to improve transparency in the wholesale FX market. The FX Global Code is a set of good practices, rather than regulation, and its publication does not establish that a particular retail broker follows the Code or offers reliable pricing. Retail traders should still review the broker’s pricing disclosures and execution policy.
The reliability of price feeds depends on the quality and availability of liquidity, the technology processing and distributing quotes, and clear disclosure of the broker’s pricing and execution arrangements. Multiple sources and fast systems can support that reliability, but neither guarantees execution at the displayed price.