INSIGHTS: The Realities of Moving From Retail Brokerage to B2B Liquidity provision — Lessons From Industry Leaders at FMLS25

At the Finance Magnates London Summit 2025, LiquidityFinder CEO Sam Low hosted a candid discussion on whether retail brokers can still succeed by expanding into B2B liquidity — a segment that has seen explosive growth in recent years and now features dozens of new players. Despite the noise, the panel’s view was measured and remarkably consistent: the market is undeniably crowded, but far from saturated. Opportunity still exists — though only for brokers willing to specialise, invest, and treat B2B as a serious institutional business.

Joining the session were Youssef Bouz, (GCC Brokers), Andrew Morgan, (Mahi Markets), Moustapha Abdel Sater, (B2Broker), John Light, (DevExperts), Alexandros Patsalides, (GTC Group). 

 

 

See the full panel video here: 

Crowded, Not Saturated — and Increasingly Unforgiving

Early in the discussion, there was unanimous agreement that the number of B2B providers has risen dramatically. What once was a market dominated by fewer than a dozen firms now includes more than 40 active names listed on LiquidityFinder alone.

For Youssef Bouz, the issue is less about the number of participants and more about the quality of many new entrants. He argued that too many brokers attempt to replicate what they see others doing, without the infrastructure, technology or risk framework required to serve institutional clients. This influx, he suggested, creates confusion in the market and often results in clients learning hard lessons only after suffering losses or operational failures at the hands of underprepared providers.

Alexandros Patsalides agreed, noting that many brokers underestimate how different commercial, operational and risk expectations are in the institutional world. A retail firm attempting to “go B2B” without proper capital, governance and expertise, he said, is almost certain to struggle — something he has witnessed repeatedly. According to him, the market is performing its own natural filter and will reject providers who lack the discipline or capability to operate at this level.

 

Differentiation Through Capability, Not Spreads

One of the strongest themes of the panel was that price competition is no longer a viable strategy. With spreads already thin across most major products — and especially in gold — brokers entering B2B must find ways to genuinely differentiate their offering. Alexandros, from GTC Prime, stated that differentiation is not about marginally improving a price — it is about giving clients something genuinely unavailable elsewhere. 

Patsilides offered tangible examples of what GTC Prime has done to break away from the pack:

1. Absorbing Swap Costs to Provide Genuine Swap-Free Trading

Most providers claim to offer swap-free solutions but load fees elsewhere. GTC instead bears the cost internally, creating a real differentiator for certain markets.

2. Accepting Difficult or “Toxic” Flow

Where many LPs reject high-velocity or high-performance flow due to its impact on their bottom line, GTC leverages a network of Tier-1 and prime-of-prime counterparties to manage it efficiently. Patsalides portrayed this not as a risk-seeking behaviour, but as strategic positioning: serving the flow others will not take.

3. Supporting Prop Firms With Live Funding Models

He revealed that GTC is preparing a new service for prop trading firms, enabling successful traders to graduate from challenges into live accounts in 2026 — a model requiring infrastructure smaller providers cannot easily replicate.

These examples reinforced his central message: brokers must find their niche — and be excellent at it.

 

For Andrew Morgan of Mahi Markets, this means better understanding client flow and tailoring liquidity accordingly. Rather than aggregating generic LP feeds and reselling them, he argued for applying behavioural analytics, smarter risk management, and more thoughtful pricing models that allocate liquidity based on the profile and performance of underlying clients. In his view, the industry is rife with misapplied “choice pricing” that does not reflect the risk characteristics of the flow being serviced.

GTC Prime type innovations were discussed as examples of meaningful differentiation: unique liquidity sources, smart aggregation, and ability to handle complex or volatile products. In a similar vein, some B2B providers are starting to specialise in accepting “toxic” or difficult flow, offering swap-free structures at their own expense, or providing ultra-tight spreads backed by robust depth rather than headline numbers.

 

Customer Experience: The Rising Competitive Battleground

While much of the conversation centred on pricing and risk, Moustapha Abdel Sater emphasised that customer experience is becoming the decisive factor in B2B selection. In his view, technology accounts for just 10% of what makes a successful institutional offering. The remaining 90% lies in the infrastructure, people, and service that surround it — especially 24/7 support, rapid incident response, operational resilience and consultative guidance.

He noted that many brokers enter B2B believing it is simply a new revenue line or an extension of their existing business. However, B2B is fundamentally a servicing business, not a marketing one, and requires deep commitment to operational excellence. Those who approach it casually will see their reputation — on both retail and institutional fronts — deteriorate quickly.

 

Trust and Relationships Still Matter

Despite the increasing sophistication of technology and liquidity distribution, John Light reminded the audience that relationships remain central. While brokers often evaluate B2B partners based on spreads, feeds or distribution channels, institutional business is still driven by trust. Firms want partners who are transparent, credible and committed, not just those who offer appealing price points. He noted that this has led to rising demand — and rising cost — for experienced institutional sales personnel, as firms compete for talent that can strengthen these long-term relationships.

 

New Opportunities: Prop Trading, 24/7 Markets, and Multi-Asset Convergence

The panel also highlighted several growth areas that remain underserved:

1. Prop Trading Firms

While challenge accounts are simulated, funded accounts can generate real flow — more than many assume. Both Light and Morgan noted that servicing prop firms can be complex due to the behaviour of their traders, but also represents a meaningful and expanding opportunity.

2. 24/7 Crypto Liquidity

As Morgan observed, traders increasingly expect to operate around the clock, especially in crypto markets. Offering stable, resilient 24/7 liquidity — not just 24/5 — requires investment and automation, but can serve as a differentiator.

3. Multi-Asset Expansion

The lines between TradFi and digital assets continue to blur. Retail brokers want crypto. Crypto venues want FX and commodities. B2B providers able to deliver consistent multi-asset liquidity across both worlds will capture more demand.

 

What Should a Retail Broker Do Before Entering B2B?

The session closed with a round of final recommendations, and the advice was sobering.

🔹 Youssef Bouz urged brokers not to rush and to ensure they have the capital, technology and team required before taking on external flow.

🔹 Andrew Morgan suggested evaluating ambition and network carefully — supporting a small group of clients is vastly different from building a global infrastructure.

🔹 Moustapha Abdel Sater warned against entering B2B as a marketing decision, stressing that firms must treat it as a mission-critical operational undertaking.

🔹 Jon Light advised firms to review the business case thoroughly and prepare to hire experienced talent.

🔹 Alex Patsalides delivered the most direct message, stating that firms must know exactly why they want to enter the institutional space and be willing to commit fully. Half measures, he warned, will not survive: once in, “you have to go all in.”

 

Retail brokers can still succeed in B2B liquidity, but only if they approach it with purpose, infrastructure, and genuine differentiation. The market may be crowded, but specialists, innovators and service-driven providers continue to find room to grow.

In a space now defined by high expectations, instant transparency and global competition, entering B2B is less a pivot than a transformation. Those who make it will be the ones who understand what the institutional market truly demands — and deliver it with consistency.

 

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