Market Maker Brokers: What are they and List of the Best

Market maker brokers
Market Maker brokers are one of the various types of financial intermediaries. Let’s take a look at what they are, how they work, and how to pick the best of them.

These online brokers are specific intermediaries who belong to a specific class of financial operators. The term “market maker” literally translates to “market creator”. In this Market Maker brokers guide we’ll learn their purpose and services.

The growth of the online trading industries has resulted in the emergence of dozens of internet platforms. All of this makes it difficult for a beginner, or simply a trading enthusiast, to understand the difference between type of forex brokers.

One of the most important decisions you’ll make is which broker to use. Each platform has its own set of characteristics, advantages, and disadvantages. In our guide, you’ll learn about the best market maker brokers available today. Lastly you’ll be able to choose which one to trade with right away.

Top Market Maker Brokers List

There are a few operators who stand out among the many broker market makers for their professionalism and dependability. In addition to the aforementioned characteristics, any additional services provided at no cost can provide significant added value to traders.

Broker
Rating
Regulated
Min. Deposit
Demo
Max. Leverage
1.
Admiral Markets

FCA, CySEC, ASIC

Min $100 Deposit

1:500

Review » Visit » Visit
Terms & conditions apply
Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using Admiral Markets UK Ltd, Admiral Markets Cyprus Ltd, Admiral Markets AS Jordan Ltd or Admiral Markets Pty Ltd services, please acknowledge all of the risks associated with trading.
2.
Deriv

VFSC, FSC, IBFC

Min $5 Deposit

1 000:1

Review » Visit » Visit
Terms & conditions apply
CFDs are considered complex derivatives and may not be suitable for retail clients. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The products mentioned here may be affected by changes in currency exchange rates. If you invest in these products, you may lose some or all of your investment, and the value of your investment may fluctuate. You should never invest money that you cannot afford to lose and never trade with borrowed money.
3.
ActivTrades

FCA

Min $100 Deposit

50:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.
4.
Vantage FX

FCA, ASIC, CIMA, SIBL

Min $200 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
5.
XM Broker

ASIC, IFSC, DFSA, CySEC

Min $5 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% 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.
6.
Blackbull Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
7.
Fusion Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% 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.
8.
Eightcap Review

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment).
9.
Libertex

CySec

Min $100 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
Trading leveraged products such as CFDs involves substantial risk of loss and may not be suitable for all investors. 83% of retail investor accounts lose money when trading CFDs with this provider. Trading such products is risky and you may lose all of your invested capital.
10.
Capital.com

FCA, CySEC

Min $20 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.

What is a market maker broker?

What is the definition of a market maker broker? These are brokers who are also known as market creators, as mentioned in the introduction. But, in the end, what does it all mean? Do they establish their own stock markets and financial instruments? No, the purpose of these platforms is to allow supply and demand to collide within a square, resulting in the creation of a market.

What is a market maker broker?

It’s important to remember that there are two types of traders when it comes to asset trading. On the one hand, we have buyers, who are willing to inject liquidity into the system, and on the other hand, we have sellers, who are looking to reclaim their liquidity from the market.

Market maker brokers are a part of all of this and are considered true exchange intermediaries, structuring their own purchase prices (for buyers) and sales prices (for sellers) and acting in the first person as the trader’s counterpart.

In this case, rather than having direct market access, the trader opts to work with specific derivative instruments, such as CFDs. The latter simply mirrors the asset’s trend, allowing the trader to aim both upwards and downwards. Because of the nature of these instruments, Market Maker brokers can eliminate the fixed cost component, allowing them to profit from very small percentages of Spread (difference between purchase and sale value).

Because there are no fixed costs in this case, MM brokers allow you to open more positions throughout the day without having your capital eroded by ancillary costs (imposed by other types of brokers).

Dealing Desks

There are two types of dealing desks: broker dealing desks and no dealing desks.

A clarification is required at this time. There are two types of brokers in the world of trading or forex:

  • Dealing Desk (commonly known by the acronym DD)
  • No Dealing Desk (commonly known by the acronym NDD)

To understand the difference between these types in a simple way, think of a No Dealing Desk as an operator who acts as an intermediary within the market. In other words, it enables a direct link between the demand and the offer. It simply acts as a direct link between two subjects in this way.

Dealing Desk brokers, on the other hand, don’t just act as a link between the two parties; they literally create the market and set prices. Spreads, or the difference between two prices, profit DD brokers (commonly called “spread”).

The Broker Dealing Desk category includes market maker brokers. The STP and STP + ECN brokers are examples of no dealing desk brokers.

Best Market Maker Brokers Reviewed

eToro

eToro Logo

For years, I’ve considered eToro to be one of the most popular and well-liked brokers on the market. It has amassed millions of users and thousands of reviews as a result of its steady growth over the years. The platform’s benefits are numerous, ranging from the ease of use of the operating interface to the large number of tools available.

Trading on eToro means you’re aware that you’re using a legitimate platform with a unique registration and license number. In addition, it has a number of cutting-edge features that set it apart from other types of brokers. Copy Trading is a mechanism for copying traders of your choice, identified within the platform, and is one of the most innovative.

In this case, even if time is limited or another job must be completed, it will be possible to participate in the trading sector by following the strategies of those who engage in professional trading. A free trial account can be used to test out the feature, as well as everything else.

Libertex

Libertex Logo

Libertex is unavoidably mentioned among the best online market maker brokers. The platform has a growing number of users, official regulation, and outstanding customer service.

The section on training is one of the most popular. It simply refers to specific lessons that are open to the public and contain interesting information about the world of online trading. They are accompanied by illustrative videos created by real industry professionals. In other words, a tangible resource for anyone interested in participating in this activity or simply learning the fundamentals.

Libertex also provides all users with a test account, which is a full-fledged simulation that does not use real money.

Capital.com

Capital.com Logo

Capital.com is an Italian broker market maker that allows you to trade without any fixed costs on your account and with very small spreads. It’s a new platform that allows you to trade independently and with only the most basic functions. As a result, it is valued not only by professionals in the field, but also by users with limited experience.

The platform ensures a large number of financial instruments, which are easily found using the search section. For example, you can choose from the commodities, currency, and equity sectors, among many others.

Capital.com, like any other professional market maker broker, offers a demo account to get you started. It’s a simulation that lets you practice your openings and orders without risking any real money. Its business model is based on virtual deposits.

FXTB

FXTB Logo

FXTB is the most recent addition to our comprehensive list of the best market maker brokers. We also find interesting training services in this case, such as a hands-on course on trading and financial markets.

Commodities, stock market indices, foreign exchange, cryptocurrencies, and many other markets are available on FXTB. Traders can diversify their options by focusing their attention on several different sectors thanks to the wide range of instruments available. After you’ve completed your analyses, you can use derivative instruments to put your buying or selling strategy into action.

Your account can be managed via desktop web platforms as well as a convenient smartphone app. It allows you to keep your wallet close at hand at all times or simply use the demo section in any situation.

Market Makers vs ECN

Many people may wonder whether it is better to use a broker market maker (who acts as a counterparty) or an ECN broker after making the necessary clarifications (which instead acts as a bridge since it is included in the No Dealing Desk category).

Market Maker vs ECN Brokers

Unlike market-maker brokers, ECN brokers have significant differences in terms of exchange management. Although the end goal for all types of platforms is the same (i.e., completing purchases and sales), the means to get there are vastly different. In fact, ECN stands for Electronic Communication Network, which is a trading system that many consider to be a true revolution.

Will everything turn out to be true? As a result, we decided to dig deeper into how an ECN actually provides direct and connected access to so-called liquidity providers (for small and large operators). All of this is accomplished through the use of specific protocols and transactions designed to provide a quick and, above all, efficient connection.

However, after establishing this, it can be seen that, while ECN brokers appear to have lower spreads than Market Makers, they almost always impose fixed commissions (which, added together for several operations, can reach a considerable value and from keep in mind).

A second factor to think about is the nature of the transaction itself. A Market Maker broker, on the other hand, takes positions that are the polar opposite of those taken by traders (if the trader buys, then the broker sells in the same quantity, if the trader sells, then the broker buys in the same quantity).

This isn’t going to happen in an ECN system. Because this is only a bridge, it’s possible that you won’t be able to find a counterpart willing to accept the exchange (at those conditions and at that moment).

Pros and Cons of a Broker Market Maker

After learning about the major differences between the various types of brokers, it’s time to assess whether or not using a broker market maker [MM] is a good idea. As a result, we’ve decided to summarize the main benefits and drawbacks of each category in a few bullet points.

What are the advantages of market maker brokers? Here they are:

  • Absence of fixed commission costs (in this case there will only be the presence of spreads, i.e. the difference between the purchase and sale value).
  • Possibility of using leverage (while still considering its danger) contrary to other types of brokers, with much lower levers.
  • Low initial amount to finance your account: even in this case, ECN brokers are very often accused of requiring too high an initial capital, especially for novice users. Other than that, with most market maker brokers, the entry amount is relatively lower.
  • Ease of use : the most important platforms, such as eToro, have interfaces that are easy to use and above all very intuitive.

Moving on to the disadvantages of market maker brokers, many platforms have been accused of juggling and juggling pricing to their benefit over the years. There would be a conflict of interest between the user who trades (i.e. the trader) and the platform as a whole (which profits from the spreads).

In this case, it’s important to remember that there are professional brokers and dubious brokers, just as there are in any industry. Finding a dependable platform is therefore critical, but how do you do it? Let’s see what we can find out together.

Conclusion

As previously stated, it is critical to remember and understand some requirements that every self-respecting platform should possess in order to avoid relying on an unprofessional market maker broker.

We’ve mentioned several times in this guide how this type of operator acts as a market counterpart, necessitating a large amount of liquidity. It is the latter that ensures the immediate opening of a particular position.

In this regard, all MM brokers must adhere to stringent requirements, such as holding a significant amount of capital in order to provide their services. It is difficult to pass the necessary verifications and controls, and only a few platforms can be considered truly professional and fully authorized.

The presence of permissions is a second important factor to consider. For example, in the following paragraphs, we will suggest some of the best platforms in the world, all of which have been granted licenses and authorizations by CONSOB or another similar body.

Aside from purely technical characteristics, an excellent broker market maker must offer a fast, fluid, and above all, simple to use platform, similar to the ones analyzed in the following lines.

Broker Market Maker FAQs

What is a market maker broker?

A broker market maker is a specialized operator who is authorized to act as a counterparty in financial instrument trading (creating the market).

What are no Market Maker brokers?

Brokers who does not fall into the Market Maker category are brokers who fall into one of the other categories. Market maker brokers, for example, fall into the Dealing Desk broker category, whereas no market maker brokers (such as ECN) fall into the No Dealing Desk broker category.

What are the best market maker brokers?

Market maker brokers who meet certain capital requirements and have the necessary authorizations from the bodies in charge of the sector's regulation and supervision are the best.

Other broker types

ECN stands for Electronic Communication Network and it is currently a very popular instrument in forex trading that can be used to directly connect traders with financial companies. Thus an ECN forex broker is a financial professional that uses ECNs to give traders not only direct access to participants in this market but also tighter spreads, which is one of the things that any trader would appreciate.

About James Johnson
About James Johnson

Expert in Economics, Trading, Investments and Personal Finance. Graduated in 2001 in Business Economics and Management at Harvard University. After several years of working in the foreign exchange trading industry, I co-founded Forex Online Brokers in 2015 with the aim of distributing my personal knowledge and professional experiences in the field of trading and investments in general.