Market maker forex brokers are involved in actively quoting two-sided markets, and providing bids and asks, along with the market size of each. This type of broker buys and sells large amounts of a particular asset, which can help facilitate market liquidity. In this way, a market maker broker is very different from an ECN broker, which simply provides a network through which market participants buy and sell assets from and to each other.
Market maker brokers operate a dealing desk and take their profit from the difference in the bid-ask spread. They also make trades for their own accounts, known as principal trades. Market maker brokers are compensated for the risk of holding assets, because the value of a currency or other instrument can decline between when it is bought and when it is sold.
The Best Market Maker Forex Brokers
| Broker | Features | Min Deposit | EURUSD Spread | ||
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 Your capital is at risk
US Clients: No Regulated : Yes
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– Flexible leverage up to 500:1 |
$200 | From 0.1 | ||
 Your capital is at risk
US Clients: No Regulated : Yes
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– 40% New Member Bonus
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$100 | Fixed |
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Europe* CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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 76% of CFD traders lose money
US Clients: No Regulated : Yes
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$50 (varying by Country) | from 1 |
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76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
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 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
US Clients: No Regulated : Yes
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– FCA (FRN 509909), ASIC, FMA, and FSCA Regulated. |
100GBP/AUD/EUR/USD | variable |
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81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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 Your capital is at risk
US Clients: No Regulated : Yes
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– The highest rated Broker of 2018 (as voted by Wealth & Finance International Awards) |
$250 | 0.3 - 2 pips | ||
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Market Maker Broker Benefits
There are various benefits when it comes to using a market maker broker:
- Market maker forex brokers facilitate a smoother flow of financial markets by providing volume, and make it easier for investors and traders to buy and sell – without market maker brokers, there is a risk that there would not be enough market transactions, resulting in fewer investment activities.
- Market maker brokers tend to offer a lower cost per trade for investors as they often operate a no commission model, taking profits only from the spreads.
- Market maker forex brokers often offer a lower minimum deposit than ECN brokers, and sometimes there is no minimum deposit required, making trading very accessible.
Market Maker Broker Disadvantages
- Pricing can be less transparent with some market maker forex brokers – the no commission model sounds attractive, but spreads are constantly changing, slippage is possible, and any particular trade can result in a higher cost than the trader was expecting.
- Market maker brokers are market participants, meaning that the market maker is willing to take the other side of your trade and effectively trade against you. Every time a trader loses, the market maker wins, which can present a conflict of interest.
- Market maker forex brokers have an incentive to recommend tradable asset categories for which they make market, and the trading conditions on these asset classes will generally be less attractive than the same assets at a true ECN brokerage.
Conclusion
Market maker forex brokers can be more accessible than ECN/STP brokers, given that the minimum deposit can be lower, as can the cost per trade. There are also drawbacks, however, so it is important to consider all aspects of trading when it comes to deciding if a market maker forex broker is right for you. In addition, it is vital to consider more than just the market model when choosing a broker to trade with. Traders should consider all of the broker’s features and benefits, including the trading platforms offered, different account types, fees and charges, and deposit and withdrawal options.