JustChartsECN vs Market-Maker Brokers: What’s the Difference?
A market-maker (dealing desk) broker quotes its own prices and often takes the other side of clients’ trades, earning mainly from the spread. An ECN or STP (no dealing desk) broker routes orders to banks and other liquidity providers, usually offering tighter raw spreads plus a commission. Neither is automatically better: regulation, total trading cost and execution quality matter more than the label.
Key facts
- Market maker
- quotes own prices; earns spread; may take the other side
- ECN / STP
- routes to liquidity providers; raw spread + commission
- Typical ECN cost
- commission per lot plus near-zero spread
- Most important
- regulation and total cost per trade
- Hybrid
- many brokers do both (“A-book” and “B-book”)
Market makers (dealing desk)
A market maker sets the bid and ask you trade on. It may hedge your trade in the wider market or keep it on its own books (“B-book”), in which case it profits when you lose. Regulated market makers must still give fair execution, and they often offer fixed spreads, small minimum trade sizes and simple pricing.
ECN and STP (no dealing desk)
An ECN (electronic communication network) broker lets your order interact with prices from several banks and liquidity providers. STP (straight-through processing) brokers pass orders to their liquidity providers. Both typically show raw spreads that can be near zero on major pairs, plus a fixed commission per lot.
Comparison
| Market maker | ECN / STP | |
|---|---|---|
| Pricing | Broker’s own quotes | Liquidity providers’ quotes |
| Main cost | Wider spread | Raw spread + commission |
| Spreads during news | May be fixed or widen | Widen with the market |
| Conflict of interest | Possible if trades are kept in-house | Lower |
| Good for | Beginners, small sizes | Active and high-volume traders |
What really matters
- Regulation: check the broker on a top-tier regulator’s register in your country.
- Total cost: compare spread + commission + swap for the way you trade.
- Execution: how often orders slip, and whether positive slippage is passed on.
- Client money: segregated accounts and negative balance protection.
Frequently asked questions
Is an ECN broker better than a market maker?
Not automatically. ECN brokers usually have tighter pricing and fewer conflicts, but a well-regulated market maker can be cheaper for small or infrequent trades. Compare total costs and regulation.
Do market makers trade against you?
Some keep client trades in-house and therefore profit when clients lose. Regulated brokers must still provide fair prices and execution.
What is an A-book and B-book broker?
A-book means passing trades to the market; B-book means keeping them in-house. Many brokers use both depending on the client and trade size.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
Learn how spreads and costs workThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.