Market Maker Forex Brokers

Written by Christopher Lewis
Christopher Lewis
Christopher Lewis is a professional trader and author specialized in Forex and Crypto trading.
, | Updated: September 1, 2025

Forex brokers can be categorised into three main types based on how they execute orders: Market Makers, STP (Straight Through Processing) brokers, and ECN (Electronic Communication Network) brokers. In this comprehensive guide, we will focus on the first group.

Market Makers, also known as dealing desk (DD) brokers, play a crucial role in the foreign exchange market by providing liquidity and facilitating trades. As this execution model is relatively widespread, we have carefully selected the top DD brokerages that stand out with competitive spreads and impressive execution speeds.

Christopher Lewis is a US based Forex trader and analyst who trades across all sessions and pairs. He contributes forecasts, videos, and signals to major platforms like DailyForex.com, FXEmpire.com and Investing.com
Expert opinion by Christopher Lewis:
The main role of the market maker is to continuously quote both a bid in and ask price in every instrument it offers. It stands ready to buy from customers at the bid and sell to them at the ask, ensuring that the markets move in a smooth and orderly manner. Many market makers are inter-dealer platforms, high-frequency trading firms on exchanges, or possibly even CFD/FX brokers running an internal “B-book.

Below you can find a list of Market Maker Forex brokers:

Top 7 Forex Brokers that are Market Makers

Brokers Compared by Spread

FX Brokers Deposit Method Comparison

Brand Minimum deposit
eToro Available $50 or $100 based on country ($10 for the UK)
Plus500 Available $100
XM Group Not Available $5
easyMarkets Not Available $25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP)
AvaTrade Not Available $100
XTB Available $250
ActivTrades Available $0

Brokers by Regulator

Brand Maximum leverage
eToro Available 1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:400 (FSAS | Retail Account)
Plus500 Available 1:300 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:30 (FMA | Retail Account), 1:30 (SFSA | Retail Account), 1:30 (DFSA), 1:300 (FSAS), 1:20 (MAS), 1:300 (SCB)
XM Group Available 1:30 (CySEC | Retail Account), 1:1000 (IFSC | Retail Account)
easyMarkets Available 1:500 (ASIC | Pro Account), 1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:2000 (FSAS | Retail Account)
AvaTrade Available 1:400 (Pro Account), 1:30 (Standard Account)
XTB Available 1:200 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:500 (IFSC | Retail Account)
ActivTrades Not Available 1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB)

Forex Brokers Platform Availability

Brand FX pairs to trade
eToro Not Available Proprietary
Plus500 Not Available Proprietary Mobile, Proprietary Web
XM Group Available MetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary Web
easyMarkets Available MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web, TradingView
AvaTrade Available MetaTrader 4, MetaTrader 5, Proprietary Web
XTB Not Available Proprietary
ActivTrades Available MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView

Comprehensive Comparison of the Best Market Maker Brokers

Brand Min. Deposit Trading Platforms Spread Regulation Trustpilot
$50 or $100 based on country ($10 for the UK)
  • eToro App
  • eToro CopyTrader
  • eToro Investing
AVG 1 pips
  • CySEC (Cyprus)
  • FCA (United Kingdom)
  • FRSA (United Arab Emirates)
  • FinCEN (United States)
  • FINRA (United States)
  • FSAS (Seychelles)
  • GFSC (Gibraltar)
  • AMF (France)
  • MFSA (Malta)
  • SEC (United States)
  • ASIC (Australia)
$100
  • Proprietary Mobile
  • Proprietary Web
AVG 1.3 pips
  • CFTC (United States)
  • CySEC (Cyprus)
  • DFSA (United Arab Emirates)
  • EFSA (Estonia)
  • FCA (United Kingdom)
  • FFAJ (Japan)
  • FMA (New Zealand)
  • FSA (Japan)
  • FSAS (Seychelles)
  • FSCA (South Africa)
  • MAS (Singapore)
  • SCB (Bahamas)
  • ASIC (Australia)
$5
  • MetaTrader 4
  • MetaTrader 4 MultiTerminal
  • MetaTrader 5
  • Proprietary Mobile
  • Proprietary Web
AVG 1.2 pips
  • CFTC (United States)
  • CySEC (Cyprus)
  • DFSA (United Arab Emirates)
  • FSCA (South Africa)
  • IFSC (Belize)
  • FSCM (Mauritius)
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP)
  • MetaTrader 4
  • MetaTrader 5
  • Proprietary Mobile
  • Proprietary Web
  • TradingView
MIN 0.8 pips
  • CySEC (Cyprus)
  • FSAS (Seychelles)
  • FSCA (South Africa)
  • ASIC (Australia)
  • BVIFSC (Virgin Islands, British)
$100
  • AvaOptions
  • DupliTrade
  • AvaSocial
  • MetaTrader 4
  • MetaTrader 5
  • AvaTadeGO
  • Proprietary Web
  • ZuluTrade
AVG 0.8 pips
  • CIRO (Canada)
  • CySEC (Cyprus)
  • FRSA (United Arab Emirates)
  • FFAJ (Japan)
  • FSCA (South Africa)
  • FSRA (Canada)
  • ISA (Israel)
  • JFSA (Japan)
  • ASIC (Australia)
  • BVIFSC (Virgin Islands, British)
  • CBI (Ireland)
$250
  • xStation 5
AVG 0.9 pips
  • CNMV (Spain)
  • CySEC (Cyprus)
  • DFSA (United Arab Emirates)
  • FCA (United Kingdom)
  • FSCA (South Africa)
  • FSAN (Norway)
  • IFSC (Belize)
  • KNF (Poland)
  • BaFin (Germany)
$0
  • MetaTrader 4
  • MetaTrader 5
  • Proprietary Web
  • TradingView
AVG 0.5 pips
  • CONSOB (Italy)
  • FCA (United Kingdom)
  • SCB (Bahamas)
  • CMVM (Portugal)
  • FSCM (Mauritius)
  • CVM (Brazil)

We will explore the inner workings of Market Maker Forex Brokers, comparing them to other types of brokers, and discussing the advantages and disadvantages of trading with them. By the end of this page, you will have a comprehensive understanding of Market Maker Forex Brokers and be able to make informed decisions about your trading needs.

Market Maker Forex Brokers – How Do They Operate?

Market Maker Forex Brokers serve as intermediaries between buyers and sellers in the foreign exchange market. They “make” or set the bid and ask prices for currency pairs, providing liquidity to the market. This means they are always ready to buy or sell a currency pair at the prices they set, allowing traders to enter and exit positions quickly and efficiently.

Market Makers maintain a large inventory of currencies, which they use to fulfil trades. They profit from the spread—the difference between the buy and sell prices—as well as from any commissions or fees they charge. Market Makers also often provide additional services, such as research and analysis, to help traders make informed decisions.

One of the key characteristics of Market Makers, as mentioned above, is their ability to provide liquidity to the market even during periods of low trading activity. However, this also means that they can influence the prices of currency pairs, which may be a concern for some traders.

To illustrate how Market Maker Forex Brokers operate, consider the following example. Suppose you want to buy one lot of EUR/USD through a Market Maker broker. The broker quotes a price of 1.1000, and you buy at this level. The broker then hedges the exposure by purchasing the currency from another market participant, such as a bank or another broker, at a slightly lower price, say 1.0995. The broker’s profit is the difference between the two prices—0.0005, or five pips.

Comparison between Market Makers, STP, and ECN Forex Brokers

As mentioned above, there are several types of Forex brokers, each with its own characteristics, advantages, and disadvantages. Market Makers, STP (Straight Through Processing) brokers, and ECN (Electronic Communication Network) brokers are three of the most common types of brokers.

  • Market Makers

    Market Makers act as intermediaries between buyers and sellers, setting the bid and ask prices for currency pairs. They provide liquidity to the market and profit from the spread and any commissions or fees they charge.

  • STP Brokers

    STP brokers, on the other hand, act as intermediaries between traders and liquidity providers. They do not set the bid and ask prices themselves but instead route trades to liquidity providers, such as banks or other brokers.

  • ECN Brokers

    ECN brokers are similar to STP brokers, but they provide direct access to the interbank market, allowing traders to interact with multiple liquidity providers.

The main difference between Market Makers, STP brokers, and ECN brokers is the way they provide liquidity to the market. Market Makers provide liquidity themselves, while STP and ECN brokers route trades to liquidity providers. This can affect the prices and execution of trades, as well as the level of transparency and accountability.

Here is a summary of the main differences between Market Maker, STP, and ECN Forex Brokers:

Market Maker Forex Brokers:

  • Act as counterparties to clients’ trades
  • Provide liquidity to the market
  • Fixed spreads
  • No commissions
STP Forex Brokers:

  • Act as intermediaries between clients and other market participants
  • Route trades to other market participants
  • Variable spreads
  • May charge commissions
ECN Forex Brokers:

  • Use electronic communication networks to connect clients with other market participants
  • Provide access to a large pool of liquidity providers
  • Tightest spreads
  • May charge commissions

Advantages and Disadvantages Related to Trading with Market Maker Forex Brokers

Trading with Market Maker Forex Brokers entails both advantages and disadvantages. We have listed them below so traders can make informed decisions about the brokers with which they choose to open accounts.

Advantages

  • Tighter Spreads: Market Makers often provide tighter spreads, as they control both prices and liquidity. In contrast to STP/ECN brokers, which offer floating spreads, Market Maker Forex brokers typically offer fixed spreads.
  • Faster Execution: Market Maker Forex Brokers often have fast execution speeds, which can be beneficial for traders who need to enter and exit trades quickly. Fast execution can help traders take advantage of market opportunities and avoid losses due to slow execution.
  • Additional Services: Market Makers often provide additional services, such as research and analysis, to help traders make informed decisions.
  • Liquidity: Market Makers are able to provide liquidity to the market, even in times of low trading activity, which can be beneficial for traders who want to trade large volumes. They act as the counterparty to their clients’ trades, ensuring that there is always a buyer or seller available to execute trades.

Disadvantages

  • Conflicts of Interest: Market Makers may be more prone to conflicts of interest, as they set the bid and ask prices and profit from the spread.
  • Less Transparent Pricing: Market Makers may not provide transparent pricing, as they set the bid and ask prices themselves, which can be a concern for some traders.
  • Higher Commissions: Market Makers may charge higher commissions or fees, as they are providing liquidity and executing trades.

It is worth noting that the advantages and disadvantages of trading with Market Maker Forex Brokers can vary depending on the specific broker and on the trader’s individual needs and goals. It is therefore essential to conduct your own research and choose a reputable, trustworthy broker that meets your requirements.

How to Mitigate the Possible Drawbacks of Trading with Market Maker Forex Brokers?

To mitigate the potential disadvantages of trading with Market Maker Forex Brokers, traders can take several steps:

  1. Choose a Reputable Broker: Traders should choose a reputable Market Maker Forex Broker that is regulated by a respected regulatory body.
  2. Read Reviews: Traders should read reviews and conduct thorough research to find a broker that meets their needs and has a solid reputation.
  3. Understand the Trading Conditions: Traders should understand the trading conditions, including spreads, commissions, leverage, and execution speed, before opening an account.
  4. Use Risk Management Techniques: Traders should use risk management techniques, such as stop-loss orders and position sizing, to reduce the risk of losses.
  5. Monitor the Broker’s Performance: Traders should monitor the broker’s performance, including execution speed and slippage, to ensure it meets their trading needs.

FAQs

How do Market Makers operate?

Market Makers operate by maintaining a large inventory of currencies, which they use to fulfil trades. They profit from the difference between the bid and ask prices, known as the spread, and any commissions or fees they charge.

How do Market Makers differ from STP and ECN brokers?

Market Makers differ from STP and ECN brokers in the way they provide liquidity to the market. Market Makers provide liquidity themselves, while STP and ECN brokers route trades to liquidity providers.

How can I choose a reputable Market Maker Forex Broker?

To choose a reputable Market Maker Forex Broker, you should do your research, read reviews, and check for regulatory compliance. You should also consider factors such as the broker’s reputation, trading conditions, and customer support.

What are the benefits of using a Market Maker Forex Broker?

The benefits of using a Market Maker Forex Broker include tighter spreads, faster execution, and additional services such as research and analysis.

What is the future of the Market Maker Forex Broker industry?

The future of the Market Maker Forex Broker industry is likely to be shaped by advances in technology, changes in regulation, and shifts in market trends. As the industry continues to evolve, it is likely that we will see more brokers offering innovative products and services, as well as increased competition and consolidation.

Conclusion

Market Maker Forex Brokers play a crucial role in the foreign exchange market, providing liquidity and facilitating trades for investors. While they have their advantages, such as tighter spreads and faster execution, they also have their disadvantages, such as potential conflicts of interest and less transparent pricing.

When choosing a Forex broker, it’s essential to consider your individual needs and goals, as well as the characteristics and advantages of each type of broker. By doing your research and selecting a reputable and trustworthy broker, you can ensure that you receive the best possible trading experience.

Why You Should Trust RationalFX

When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2,500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.

What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.