why do brokers locate their servers in London & New York?

@dominykas - 3 months ago - Trading Platforms

I noticed that most brokers keep their servers in London and New York, but I don't know why. If a broker's server is in London/NY is it not too far away from traders on the other side of the globe?

@pierre_r_carosso - 3 months ago

Most brokers decide to locate their servers in London or New York because this is where the big banks, hedge funds, multinationals & other liquidity providers are located. The brokers server has to be close to the liquidity providers server so that transaction execution speed will be faster.

@farah_zendaya - 3 months ago

London alone accounts for almost 50% of all forex transactions in the world so it makes sense for a broker to want to keep their key infrastructure there.

@andy_colgate_nottinghill - 3 months ago

I guess it is to reduce latency. The brokers server has to be as close as possible to that of the liquidity provider, if clients are going to get instant execution of orders.