| Updated: November 28, 2024Forex brokers may fall under different categories depending on the way they handle orders but the so-called market makers (dealing desk brokers) are a preferred option by some traders as they tend to offer fast order executions, fixed spreads, and competitive prices. If you are curious about the best market makers in the forex scene, we suggest checking the 10 brands we have covered below. All of the brokers we have reviewed are regulated by top-tier authorities and ensure safe and fair trading conditions for all of their customers. While some of the brokers we have covered below offer only the market maker trading model, others have adopted multiple account options that offer different variants for trading.
AvaTrade76% of retail investor accounts lose money
CMC Markets71% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
City Index69% of retail investor accounts lose money
Plus50082% of retail investor accounts lose money
FXCM70% of retail investor accounts lose money
Saxo Bank65% of retail investor accounts lose money
IG70% of retail client accounts lose money
XTB80% of retail investor accounts lose money
XM Group72.82% of retail investor accounts lose moneyTop 10 Forex Brokers Utilizing the Market-Maker Execution Model
- 1. XM Group
XM is a well-regulated and reliable forex broker that strives to cater to the preferences of various types of traders. The broker offers its customers three main account types: Micro, Standard, and XM Zero. The Micro and Standard accounts have adopted a market maker model, meaning the broker will take the opposite position of its customer’s trades, executing orders through its dealing desk. The Micro and Standard accounts offer competitive spreads starting as low as 0.6 pips, with no commission attached to trades. Meanwhile, the XM Zero account has incorporated an ECN trading model, which allows traders bigger trading volumes, tighter spreads, and overall better pricing. However, traders who are less experienced and do not own the capital for larger trades might be better off trading with any of the market-maker accounts of XM.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% 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. - 2. eToro
Another reputable brand that has made our list of top market makers is eToro, which operates its own dealing desk. As a market maker, eToro determines the bid/ask prices of currency pairs available to trade. For the purpose of handling your orders through its in-store dealing desk, eToro will make a profit from the spread that will be applied to the trade’s price. To determine buy/sell prices, eToro relies on a wide range of independent third-party reference sources as well as independent financial market data providers. While eToro customers are not charged a commission on their trades, you will trade major currency pairs with a spread that starts from 1.0 pips.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% 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. - 3. AvaTrade
AvaTrade is a reputable forex broker that has also implemented the market maker model, with its own dealing desk executing orders placed by AvaTrade customers. As a market maker, this broker strives to offer the most competitive spreads on numerous major, minor, and exotic currency pairs. AvaTrade obtains prices from multiple third-party market data providers, with an automatic adjustment to the spread applied before the final AvaTrade prices are formed. If you decide to trade currency pairs with AvaTrade, you will have the chance to trade major forex pairs with a spread as tight as 0.6. Meanwhile, since a small charge is built into the spread, traders will be charged no commission on their forex orders.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. - 4. XTB
Forex traders seeking the best market makers for low-cost and fast forex trades can head to XTB. This broker utilizes its in-house dealing desk to conduct customers’ orders at a lightning-fast speed. The broker determines its own bid/ask prices, basing quotations on major liquidity providers. That way, XTB ensures fair and extremely competitive prices on numerous major, minor, and exotic forex pairs. With zero commission and spreads starting as low as 0.1 pips, XTB is definitely a market maker that can offer you a top-notch forex experience.
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. - 5. IG
Not only is IG one of the oldest operating forex brokers you can trust but it is also one of the best market makers, offering some of the most competitive prices for your currency pair trading. IG provides its own bid/ask prices, basing its quotes on multiple reliable venues, including liquidity providers that will ensure better prices and lower trading costs. As a member of IG, you will be able to open a standard account that will handle orders on the broker’s in-house dealing desk, with low spreads on major currencies typically starting at 0.6 pips. Meanwhile, your orders will incur zero commission, making your forex trades extra low-cost.
CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. - 6. Saxo Bank
SAXO is one of the biggest CFD brokers you can join, offering CFDs on forex, equities, bonds, and other assets. SAXO is a market maker, quoting its own bid/ask prices and it is also one of the major liquidity providers for other participants in the financial market, including smaller forex brokers. That ensures the integrity of SAXO, confirming that traders will receive competitive prices and fast orders that will be carried out in SAXO’s very own dealing desk department. To stay competitive, this market maker offers fixed forex spreads on major currency pairs that start as low as 0.6 pips.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. - 7. CMC Markets
If you join CMC Markets, you will have the chance to trade over 330 currency pairs on the broker’s top-notch spread bet and CFD platforms. CMC Markets will fulfill your orders directly on its own dealing desk department, ensuring extremely fast executions. This market maker quotes its own bid/ask prices, making sure it offers its clients highly competitive quotes by comparing prices from eight major banks. Those who decide to trade forex pairs with CMC Markets will enjoy extremely low spreads, often starting from 0.5 pips on major currency pairs like EUR/USD. With an average execution speed of 0.0045 seconds, CMC Markets ensures minimal slippage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. - 8. Plus500
Forex traders looking for the best dealing desk broker may also join Plus500, which is one of the leading brands in the trading scene, offering CFDs on forex, ETFs, commodities, and other assets. Since Plus500 is a market maker it quotes its own bid/ask prices, relying on several independent financial data providers to comprise competitive prices and low spreads on various major, minor, and exotic currency pairs. All traders will be processed on Plus500’s in-store trading platform, making sure trades are executed as fast as possible to reduce any slippage. Members of Plus500 will be able to trade forex with zero commission and spreads that range around 1.2 pips for major currency pairs like EUR/USD.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% 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. - 9. City Index
City Index started offering its financial services way back in 1983, and it is currently one of the leaders in forex and CFD trading. The brand acts as a market maker for the full range of trading markets offered to City Index customers. That means the bid and ask prices for currency pairs are also determined by the broker, with all orders being executed in-house, at the fastest possible speed. To offer traders a great value for their forex trading, City Index offers competitive prices, with spreads on major currencies starting as low as 0.5 pips. The broker is proud with 100% of limit orders executed at the price that was requested by traders or even at a better price.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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. - 10. FXCM
FXCM is a market-making broker boasting extensive experience in the financial market, having its start in 1999 in New York. Forex traders can fully trust the brand to offer some of the best trading costs, with orders being fully processed on FXCM’s in-house platform. Trading major currency pairs with FXCM will allow you to trade tickers like the EUR/USD pair with an average spread of 0.7 pips, with no commission applied to your trades. Striving to offer speedy order execution, FXCM has achieved zero or positive slippage on 87% of orders executed in 2023.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.
Comprehensive Comparison of the Top 10 Market Makers Forex Brokers
| Forex Broker | Min Deposit | Negative Balance Protection | Trading Platforms | Commission | Fixed Spreads | Min Spread | Avg Execution Speed | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|
| 1. AvaTrade | $100 | Yes (European and Australian Retail traders) | MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial, AvaOptions, DupliTrade | $0 | Yes | From 0.9 pips (retail), 0.6 pips (pro) | 30ms | 4.4 ⭐ |
| 2. CMC Markets | $0 | Yes (EU Retail traders) | CMC Markets’ Next Generation, MetaTrader 4 | $2.50 per lot (per side) | Yes | From 0.0 pips (UK), 0.3 pips (SG, AU), 0.2 pips (IE) | 3 ms | 4.2 ⭐ |
| 3. eToro | $50 or $100 based on country ($10 for the UK) | Yes (Retail traders) | eToro Investing, eToro App, TradingView, eToro CopyTrader | $0 | Yes, floating spreads also available | 1 pip | < 1000 ms | 4.2 ⭐ |
| 4. City Index | $0 | Yes (Retail traders) | MT4, WebTrader, Trading App, TradingView | $0 | Yes, floating spreads also available | From 0.3 pips (UK), 0.5 pips (AU) | 50 ms | 4.2 ⭐ |
| 5. Plus500 | $100 | Yes | Proprietary desktop and mobile platforms | $0 | Yes, variable spreads available for select markets | 0.8 pips | Unspecified | 4.1 ⭐ |
| 6. FXCM | $50 | Depends on region (N/A in UAE) | MetaTrader 4, TradingView Pro, Trading Station, Capitalise.ai | $0 | No | From 0.0 pips | 19 ms | 3.9 ⭐ |
| 7. Saxo Bank | $0 Classic$200,000 + Platinum $1,000,000 + VIP | Yes (EU, UK, and MENA regions) | SaxoTraderGO, SaxoTraderPRO, TradingView, SaxoInvestor | $3 per lot | Yes, for select index CFDs | 0.9 pips (Classic), 0.8 (Platinum), 0.7 pips (VIP) | 15 ms | 3.8 ⭐ |
| 8. IG | $50 | Yes (for limited risk accounts) | MT4, L2 Dealer, ProRealTime, IG proprietary software, TradingView | $0 | No | 0.6 pips CFD trading; 0.165 pips DMA trading | 10 ms | 3.7 ⭐ |
| 9. XTB | $250 | Yes (EU, UK, and MENA regions) | xStation 5, xStation Mobile | $0 | Yes, floating spreads also available | From 0.1 pips (Pro Account), 0.5 pips (Standard Account) | < 440 ms | 3.7 ⭐ |
| 10. XM Group | $5 | Yes, for retail clients | MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account | No | From 0.0 pips (Zero Account), 0.6 pips (Standard and Micro Accounts) | <1000 ms | 2.9 ⭐ |
Best Market Makers Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. AvaTrade | 8,855 | 4.4 ⭐ |
| 2. CMC Markets | 2,090 | 4.2 ⭐ |
| 3. eToro | 25,095 | 4.2 ⭐ |
| 4. City Index | 334 | 4.2 ⭐ |
| 5. Plus500 | 14,038 | 4.1 ⭐ |
| 6. FXCM | 548 | 3.9 ⭐ |
| 7. Saxo Bank | 6,484 | 3.8 ⭐ |
| 8. IG | 7,200 | 3.7 ⭐ |
| 9. XTB | 1,311 | 3.7 ⭐ |
| 10. XM Group | 956 | 2.9 ⭐ |
How Market-Maker Forex Brokers Work
Market makers can be described as an intermediary between the interbank and customers, with market makers fulfilling orders on behalf of their customers. To do that, desk dealing brokers purchase large positions from liquidity providers and then sell them to traders in package orders that can be fulfilled by smaller account holders.
The market maker model can be viewed as creating a new market from the already existing bigger market. To fulfill orders, market makers take the other side of the trade, with the entire process being handled by the broker’s dealing desk section. That model of processing orders ensures faster executions and fixed spreads, making it extremely popular among many forex traders.
While not all traders enjoy trading with market makers, many retail forex traders do not have the funding to trade currency pairs directly at the interbank market which requires hefty liquidity. In such cases, market makers offer an in-house trading market that caters to smaller accounts, with fixed spreads, single price quotations, and no commissions offering rather competitive pricing.
Differences between Market Makers, STP, and ECN Forex Brokers
You may not be entirely sure whether the market maker is the right trading format for your forex orders. That is why it is important to get familiar with the rest of the trading models you may encounter as you browse through different broker options online. In addition to market makers, brokers may also adopt an STP (Straight-Through Processing) or ECN (Electronic Communications Network) model.
While Market Makers use an in-house dealing desk model to process orders and create a new market, STP brokers offer traders direct access to the interbank market. This is the reason why STP brokers are also known as Direct Market Access (DMA) brokers. In the case of trading forex with STP brokers, the pricing of trades as well as their execution are handled by liquidity providers. Typically, the STP trading model is more suitable for professional traders who have the experience as well as the capital to trade larger volumes that are directly traded in the interbank forex market.
Similarly to STP brokers, ECN brokers also process customers’ orders directly in the interbank market. The difference is that ECN brokers do not necessarily link trades to liquidity providers. Instead, they may transfer orders to other participants in the FX market, such as other brokers who can take up said trades. In a way, it may be concluded that all ECN brokers are STP brokers as they fulfill orders in the interbank market. However, not all STP brokers are ECN brokers as the latter may fulfill orders with the help of other market actors.
Some forex brokers have adopted several order execution models to cater to the preferences of different traders. That way, certain account types offered by the broker will route your orders to an interbank market, with an ECN system used to fulfill orders. Meanwhile, DMA accounts can use the broker’s dealing desk system to execute your orders, offering fixed spreads, no commissions, and a faster execution speed.
Comparison between Market Makers and STP/ECN Brokers
| Market Makers | STP/ECN Brokers |
|---|---|
| Orders are processed by in-house | Orders are processed in the interbank market |
| Offer fixed spreads | Offer floating spreads |
| Traders are offered single price quotations | Traders are offered multiple prices |
| Suitable for traders with smaller accounts | Require bigger trading capital |
| No commissions are charged | Charge both entry and exit order commissions |
Benefits of Using Market-Maker Forex Brokers
With different traders having various requirements for their forex trading experiences, no single trading model can suit the preferences of every investor. That said, the market-maker trading system has several benefits that many traders might enjoy. As already mentioned above, the STP/ECN trading models are mainly suitable for traders who can afford to trade higher volumes straight in the interbank market. If you do not own the funds to place higher and riskier trades, we suggest you try market maker brokers. Since they are buying large order sizes, they can then create an in-house market that offers smaller trading sizes that are more suitable for low-volume traders.
Trading with dealing desk brokers ensures fixed spreads and a single price quotation for each currency pair you are about to trade. This may also be considered an advantage compared to the constantly fluctuating prices offered to traders who have chosen to trade with STP and ECN brokers. When it comes to prices, traders may also enjoy the fact that they will trade currency pairs with fixed spreads and no commission attached to orders. This may ensure a rather decent trading cost that may otherwise easily get higher when trading on the highly liquid interbank market.
Trading with a market maker may also offer faster execution of trades as they are handled by the broker’s in-house dealing desk software. Meanwhile, with STP/ECN brokers executing orders in the interbank market, orders may take longer to be executed, which in turn, may lead to slippage.
Potential Issues Related to Trading with Market-Maker Brokers
While market makers may sound like a suitable trading option for some traders, especially if they do not have the capital to place larger orders with STP/ECN brokers, there are some factors to consider before you choose to trade forex with a market maker.
As mentioned earlier, market makers fulfill orders by taking the opposite side of the trade. This may clearly set some conflict of interest as the broker will essentially trade against its customers. What is more, although you will be presented with a single price quotation, you may end up with a worse bid/ask price than what is offered by ECN or STP brokers.
Offering a worse bid/ask price may not be intentional but due to the slippage that can occur while key news regarding the currency exchange market is being released. Market makers may also put their order-placing systems on hold while there is high market volatility.
Even though dealing desk brokers offer fixed spreads and no commissions, traders may often get a better trading price with STP/ECN brokers as their floating spreads may often be much tighter, sometimes starting from 0 pips. Even when there is a commission applied to both the entry and exit trade points, a lower spread can ensure a better price for your trades. It should also be noted that market makers tend to offer currency prices that are significantly further from the quotes announced by other brokers.