Naylyan NazifovaNaylyan Nazifova is a Financial Research and Platform Testing Analyst at BestBrokers.com, where she reviews and tests online brokers across forex, stocks, investing and personal finance. Her experience in online trading content and broker analysis helps readers understand how platforms perform in practice, from trading tools and fees to ease of use and investor suitability.
| Expert Editor 
Eugene Lee, CFA
Eugene Lee, CFA, is the Head of Research at BestBrokers.com, where he applies more than two decades of experience in global markets, portfolio management, derivatives and fintech analysis to the evaluation of online brokers. His background in institutional investing and quantitative research helps ensure broker reviews are based on data, risk assessment and practical trading conditions. 
| Updated: Forex brokers fall under different categories depending on how they process orders, with market makers, also known as dealing desk brokers, representing a significant segment of the retail trading industry. Market makers typically provide fast order processing, fixed spreads, and competitive prices, which makes them suitable for traders seeking price stability and quick execution.
This article features 10 brokers using the market maker pricing model. All listed brokers are regulated by financial authorities and provide transparent trading conditions. Some operate solely as market makers, while others offer account types with different execution models. Traders should also consider regulation, support, platform features, and payment options, not just spreads and execution speed. Some market makers also offer guaranteed stop-loss orders to protect against market gaps.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro52% of retail investor accounts lose money
Eightcap59.57% of retail investor accounts lose money when trading CFDs with this provider.
XM Group72.82% of retail investor accounts lose money
IG67% of retail client accounts lose money when trading CFDs with this investment provider.
AvaTrade57% of retail investor accounts lose money
XTB73% of retail investor accounts lose money
CMC Markets67% of retail investor accounts lose money
FXCM70% of retail investor accounts lose money
Saxo Bank65% of retail investor accounts lose money when trading CFDs with this provider.Top 10 Forex Brokers Utilizing the Market-Maker Execution Model
- 1. XM Group
XM is a regulated market maker, acting as the counterparty to clients’ trades. The forex broker operates through licenses from CySEC (Cyprus), ASIC (Australia), IFSC (Belize) among other regulators, and that serves over 20 million customers worldwide. It offers two main account types, Standard and Ultra Low. EUR/USD spreads start from 0.8 pips for the Ultra Low and 1.6 pips for Standard account on a commission-free basis.
Zero accounts with ECN pricing are available to EU clients, allowing them to trade major forex pairs with ultra-thin spreads from 0.0 pips and a $7 round-turn commission. Onboarding customers can start with as little as $5 across all retail accounts, with swap-free trading specifically available for Ultra Low account holders.
For our live tests of XM, we chose to set up a live Ultra Low account through the MetaTrader 5 platform to evaluate its execution framework. During our testing process, we recorded average spreads of 1.1 pips for the EUR/USD pair that dropped to as low as 0.8 pips. To ensure a broader instrument evaluation, we tested gold, which featured an average spread of 30 pips and a minimum spread of 24 pips. Finally, our real-time tracking of the S&P 500 index (US500Cash) yielded a minimum spread of 5 pips and an average spread of 5.2 pips.
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
Launched in 2007, eToro executes orders through an internal dealing desk and acts as a counterparty to customers’ trades, generating revenue through the bid/ask spread rather than commissions. The broker sources market data from various independent liquidity providers to ensure competitive pricing. It currently offers a range of over 9,000 CFD markets, including 65 currency pairs.
Minimum forex spreads start from 1.0 pip at eToro with no commissions upon opening and closing positions. To evaluate their dealing desk framework, we opened a Personal (retail) account through eToro’s proprietary trading platform for our hands-on testing process. During our live environment tests, we confirmed a EUR/USD spread starting from 1.0 pip. We also expanded our tracking to other asset classes, recording trading costs for Gold (XAU/USD) from 102 pips and the S&P 500 Index from 11 pips.
Other than forex, customers can trade cryptocurrencies, stocks, commodities, indices, and ETFs. Maximum retail leverage is capped at 1:30 for Europe, Australia, and the UK. Customers outside these regions can generally access ratios as high as 1:400. The minimum deposit starts from $50 in most countries.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 52% 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
Launched in 2006, AvaTrade is a regulated market maker with licenses from ASIC, CySEC, FSCA, and CBI, among others. The broker quotes prices for over 50 major, minor, and exotic currency pairs using a commission-free pricing model. 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.
Spreads for major forex pairs like EUR/USD average 0.8 pips, with maximum leverage of 1:400 for customers outside Europe and Australia. Traders must deposit at least $100 to get started with a live account.
For our hands-on evaluation of AvaTrade, our editorial team opened a live Standard account and executed trades using the MetaTrader 5 platform. During our live testing environment, we monitored their pricing execution firsthand and recorded a highly stable spread of 0.8 pips for the EUR/USD currency pair. We also expanded our real-time tracking to non-forex instruments, experiencing a tight spread of 37 pips for Gold (XAU/USD) and a spread of 5 pips for the S&P 500 index.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57% 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
XTB has been in operation for over 20 years and currently serves over 2.5 million clients with licenses from the FCA, KNF, CySEC, and FSC. Operating under a market maker model, the broker utilizes an in-house dealing desk to process customer orders efficiently . It sets its own bid/ask prices based on quotations from major liquidity providers, enabling commission-free trading in 69 currency pairs.
Forex spreads start from as little as 0.8 pips. Customers can further diversify their portfolios with over 2,600 other CFD markets across major asset classes like stocks, indices, commodities, cryptocurrencies, options, and ETFs.
For our hands-on testing of XTB, we set up a live Standard account on their proprietary xStation platform to evaluate their execution framework. During our live environment tests, we monitored their pricing behavior firsthand and recorded a stable spread of 1.3 pips for the EUR/USD pair.
We also extended our tracking to other major asset classes to evaluate their overall competitiveness, capturing a gold price of $4,161.06 with a spread of 90 pips. Finally, our real-time tracking of the US500 index showed a price of $7,321.7 with a highly responsive spread of 4 pips.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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
IG is among the longest-running forex brokers with an industry experience spanning over 50 years. As a market maker, IG derives its pricing from various independent venues and liquidity providers to offer consistent spreads that align with broader market conditions. Onboarding clients can open a standard account where all orders pass through the broker’s proprietary dealing desk. Spreads for EUR/USD typically start from 0.6 pips and average near 0.85 pips with zero commissions charged.
Other than this forex pair, we also tracked the trading costs related to Spot Gold on the standard 100 oz contract, and we recorded tight spreads from 30 pips. During our live account testing on the US500 cash index, we experienced highly competitive pricing. Our real-time tracking recorded a minimum spread of 4 pips during core Wall Street sessions, which widened up to 15 pips during illiquid out-of-hours periods, bringing our overall recorded average to 9.5 pips.
Besides the CFD trading account, IG supports a Direct Market Access (DMA) account, which is based on smart order routing (SOR). With this type of forex execution, traders get access to the physical market without intermediaries and see the different orders and prices themselves.
CFDs are complex instruments. 67% 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
Launched in 1992, Saxo is an established Danish bank with over 1.5 million customers worldwide and €115 billion in client assets under management. The company holds a banking license from the Swiss regulator FINMA and acts as a liquidity provider for other market participants, including smaller forex brokers.
This internal execution model allows Saxo to manage order flow through its own dealing desk, providing traders with direct pricing and efficient execution. The broker offers fixed forex spreads on major currency pairs that start from 1.0 pip with Classic accounts and 0.9 pips with Platinum accounts. The VIP account tier offers reduced spreads from 0.7 pips, but requires a significant initial deposit of $1 million.
To evaluate this market-making framework firsthand, our team set up a live Classic account, which is the broker’s default level when opening an account and carries no initial deposit requirement. During our live testing process, we recorded a stable EUR/USD spread of 1.0 pip. We also expanded our real-time monitoring to commodities and equity indices, where we experienced a tight spread of 63 pips for Gold (XAU/USD) and an average spread of 7.5 pips on the US500 index.
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
With over 35 years of industry experience, CMC Markets facilitates trading with more than 12,000 financial instruments, including 300+ currency pairs, commodities, stocks, cryptocurrencies, indices, and bonds.
CMC Markets operates a market-maker execution model for its CFD offering, acting as the counterparty to client trades. The broker uses an automated pricing and execution infrastructure that aggregates liquidity from multiple sources to provide competitive pricing and fast execution across its product range. The broker facilitates fast order execution by routing client orders through an in-house dealing desk that compares pricing data from 8 major banks to maintain competitive market rates.
CFD accounts at CMC Markets enable commission-free forex trading with spreads from 0.5 pips on major pairs like EUR/USD. The broker charges commissions on stock and ETF positions only. CMC Markets has a median execution speed of 0.0045 seconds, which reduces the likelihood of slippage during normal market conditions.
To evaluate this execution infrastructure firsthand, our team conducted live environment tests through CMC Markets’ proprietary platform. During our live tracking window, we recorded a highly stable EUR/USD spread of 0.7 pips, close to their baseline minimum of 0.5 pips. We also extended our monitoring to alternative asset classes to assess their broader pricing environment, capturing a tight spread of 20 pips on Gold (XAU/USD) alongside a competitive spread of 5 pips on the US500 index.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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
Plus500 offers a proprietary trading platform that features more than 2,800 financial instruments, ranging from forex and ETFs to commodities, stocks, and indices. The broker provides a choice from more than 60 currency pairs and derives its prices from a broad network of independent financial data providers. Trades are executed through the Plus500 proprietary platform using a fully automated system, designed to process orders sequentially and minimize latency.
Customers can trade forex with zero commissions and spreads of around 0.9 pips for major pairs like EUR/USD. Traders can utilize guaranteed stop-loss orders on specific instruments to manage their risk and ensure their positions close at the chosen price regardless of market gaps or slippage. The service involves paying a premium only if the guaranteed stop loss triggers.
Our editorial team audited these pricing parameters by running real-time tracking sessions within the broker’s software interface. Our live analysis showed that the EUR/USD spread held steady at 0.9 pips, mirroring the broker’s baseline benchmark. Expanding our testing across the rest of the asset menu revealed a gold (XAU/USD) spread of 73 pips alongside a spread of 7 pips on the US500 index.
79% 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. - 9. FXCM
FXCM is a market maker with extensive experience dating back to 1999 in New York. The broker is regulated by several authorities, including the FCA and ASIC, which oversee its pricing transparency and capital requirements. FXCM provides commission-free trading on major currency pairs, with the EUR/USD maintaining an average spread of 0.7 pips.
According to the broker’s 2024 execution data, 62.2% of orders were filled with zero slippage, while 25.6% experienced positive slippage, where trades were executed at a price better than requested.
To see how this environment performs under real trading conditions, our team set up an account at FXCM’s native Trading Station platform. During our live audit, we observed an average spread of 1.35 pips on the EUR/USD pair. Beyond forex, our cross-asset monitoring recorded a 30-pip spread on Gold (XAU/USD) and 6 pips on the SPX500 index.
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. - 10. ActivTrades
ActivTrades provides fast order execution with average speeds of 0.004 seconds and quotes prices for over 1,000 CFD products across markets like forex, commodities, shares, indices, ETFs, bonds, and cryptocurrencies. The broker supports third-party platforms like MT4 and MT5, alongside its proprietary ActivTrader software. Traders looking for advanced charting features can connect their accounts to TradingView, which also enables social trading.
ActivTrades operates under a hybrid execution model. Although the broker utilizes no dealing desk technology to automate order processing, it remains the sole execution venue for its clients, acting as the principal and counterparty to every trade. Spreads for major currency pairs average 0.5 pips with no entry or exit commissions. There are no minimum account requirements when opening a live account at ActivTrades.
Our independent analysis of this setup involved mapping live data feeds through an Individual Account on the MetaTrader 5 platform. During our tracking window, EUR/USD spreads dipped to a minimum of 0.5 pips and maintained a 0.9-pip average. For Gold (XAU/USD), our logs showed a highly competitive minimum of 25 pips with a 47-pip average, while the S&P 500 index ranged from a low of 2.3 pips to a broader average of 11.4 pips.
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 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-Maker 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, AvaTade App, AvaSocial, AvaOptions, DupliTrade | $0 | Yes | From 0.9 pips (retail), 0.6 pips (pro) | 30ms | 4.7 ⭐ |
| 2. 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 | 4.5 ⭐ |
| 3. CMC Markets | $0 | Yes (retail traders) | MT4, MT5, TradingView, Next Generation (proprietary | $0 for forex trading | Yes | From 0.0 pips (UK), 0.3 pips (SG, AU), 0.2 pips (IE) | 0.0045 seconds | 4.3 ⭐ |
| 4. eToro | $50 or $100 based on country ($10 for the UK, $1 in the US) | Yes (retail traders) | eToro Investing, eToro App, TradingView, eToro CopyTrader, Proprietary | $1 or $2 (stocks only) | Yes, floating spreads also available | From 1 pip | < 1000 ms | 4.2 ⭐ |
| 5. Plus500 | $100 | Yes | Proprietary, desktop and mobile platforms | $0 | Yes, variable spreads available for select markets | 0.8 pips | Unspecified | 4.2 ⭐ |
| 6. City Index | $0 ($150 for Singapore and Australia) | Yes (Retail traders) | MT4, WebTrader, Trading App, TradingView | $0 on forex trades; 1.8 CPS for US shares ($10 minimum); 0.08% for other shares ($10 or A$5 minimum) | Yes, floating spreads also available | From 0.7 pips (UK); 0.5 pips (Singapore and Australia) | 20 ms | 4.2 ⭐ |
| 7. IG | $0 | Yes (for limited risk accounts) | MetaTrader4, L2 Dealer, ProRealTime, IG proprietary software, TradingView, | $0 | No | from 0.6 pips Forex trading; 0.165 pips av. spread DMA trading | 10 ms | 3.9 ⭐ |
| 8. Saxo Bank | $0 Classic$200,000 + Platinum $1,000,000 + VIP | Yes (EU, UK, and MENA regions) | Proprietary, SaxoTraderGO, SaxoTraderPRO, TradingView, SaxoInvestor | $3 per lot | Yes, for select index CFDs | 0.9 pips (Classic), 0.8 (Platinum), 0.7 pips (VIP) | 13 ms | 3.6 ⭐ |
| 9. XTB | $0 | Yes (EU, UK, and MENA regions) | xStation 5, xStation Mobile | $0 for Standard accounts, $3.50 per side for Pro accounts | Yes, floating spreads also available | From 0.1 pips (Pro Account), 0.5 pips (Standard Account) | < 440 ms | 3.5 ⭐ |
| 10. XM Group | $5 | Yes, for retail clients | MetaTrader4, MetaTrader5, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal, XM App | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account | No | From 0.0 pips (Zero Account), from 0.8 pips (Standard and Micro Accounts) | <1000 ms | 2.7 ⭐ |
Market-Maker Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. AvaTrade | 11,076 | 4.7 ⭐ |
| 2. FXCM | 756 | 4.5 ⭐ |
| 3. CMC Markets | 2,571 | 4.3 ⭐ |
| 4. eToro | 29,171 | 4.2 ⭐ |
| 5. Plus500 | 17,312 | 4.2 ⭐ |
| 6. City Index | 393 | 4.2 ⭐ |
| 7. IG | 8,324 | 3.9 ⭐ |
| 8. Saxo Bank | 7,617 | 3.6 ⭐ |
| 9. XTB | 1,935 | 3.5 ⭐ |
| 10. XM Group | 2,787 | 2.7 ⭐ |
How Market-Maker Forex Brokers Work
Market makers act as intermediaries between the interbank market and customers, serving as the direct counterparty to their trades. By acting as a market maker, the broker provides the necessary liquidity for its clients to execute trades instantly, regardless of whether a matching buyer or seller is immediately available in the external market.
The market maker model functions by creating an internal liquidity pool derived from the broader interbank market. To fill orders, market makers often take the other side of the trade, with the entire process being handled by the broker’s dealing desk department.
Market making often facilitates faster execution and more stable pricing. Upon receiving an order, the broker decides whether to act as a counterparty by taking the opposite side of the trade or to hedge the trade with a liquidity provider. The broker adjusts the spread by adding a nominal markup, then places and processes the order.
Market makers bridge the gap between retail traders and the institutional interbank market, where high minimum trade sizes often act as a barrier to entry. This model allows for flexible position sizing, enabling traders with smaller accounts to access a wide range of currency pairs with simplified pricing and no commissions.
Differences between Market Makers, STP, and ECN Forex Brokers
Choosing the right execution model is important for any trader, as it dictates how orders are routed and filled. While market makers provide internal liquidity, other brokers utilize Straight-Through Processing (STP) or Electronic Communications Network (ECN) models to connect traders directly with external liquidity providers or the interbank market.
STP brokers route client orders directly to a pool of external liquidity providers. The standard STP model allows brokers to automate execution without human intervention, sourcing prices from several major banks or prime brokers. Associated with transparency and speed, this model is more suitable for professional traders who prioritize execution quality and market-derived pricing.
Steps in STP Execution
- The broker receives the order and passes it to its network of liquidity providers.
- A liquidity provider executes the order at the best available price.
- The STP broker sends confirmation to the trader and handles order settlement.
ECN brokers route client orders to an Electronic Communications Network, where they are matched against a variety of liquidity providers and other market participants. Unlike standard STP routing, ECN brokers connect traders to a virtual network where orders can be matched against a wide range of participants, including banks, hedge funds, and other retail traders. Both models operate without a dealing desk. However, STP brokers act as middlemen to specific liquidity providers, while ECN brokers offer a centralized network where various market participants compete for fills.
Steps in ECN Order Execution
- After the client makes an order, the broker transfers it to the electronic communication network where all interbank market participants can see it.
- The system matches the customer’s order with a corresponding order from another market participant.
- The order is executed at an interbank price without markups or other spread adjustments.
- The ECN broker confirms the order execution and settles the transaction.
Some forex brokers adopt a hybrid model to address different customer requirements. A single broker may provide ECN accounts with raw spreads and fixed commissions per lot, while also offering standard accounts with marked up spreads and no commissions. These accounts are often preferred by retail traders due to their straightforward pricing and absence of commissions. Understanding the differences between these three pricing models may help you choose the broker that best aligns with your specific trading strategy, capital requirements, and risk tolerance.
Comparison between Market Makers and STP/ECN Brokers
| Market Makers | STP/ECN Brokers |
|---|---|
| Orders are processed by an in-house dealing desk | Orders are processed in the interbank market |
| Fast execution but there is a risk of requotes | Reliable and precise execution without requotes |
| Derive profits from spread markups | Profit mostly from commissions |
| Spread markups may range from 0.5 to 1.5 pips | No markup, with spreads from 0.0 or 0.1 pips |
| Offer fixed spreads in most cases | 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
There is no single execution model suitable for all market participants as they all have different requirements and goals when engaging in forex trading. Nevertheless, the market maker model offers several advantages that make it a practical choice for many traders.
The STP and ECN models are suitable for high-frequency traders and scalpers who prioritize transparent, market-driven pricing. The market maker model is often more accessible to those with limited starting capital. By acting as direct counterparties to every trade, these brokers can offer highly flexible contract sizes that are not always available in the ECN environment. Market makers often have lower minimum deposit requirements and enable retail customers to trade smaller positions corresponding to their budget.
Trading via a dealing desk provides price consolidation, typically resulting in fixed spreads and a single quotation for each currency pair. This may be considered an advantage compared to the variable spreads typical of STP and ECN brokers. Because market makers typically utilize a spread-only pricing model without additional commissions, the total transaction cost is known upfront.
Trading with a market maker may also offer faster execution as orders are processed by the broker’s in-house dealing desk software. The price is typically fixed because orders are filled within the market maker’s own liquidity pool. If the market moves too quickly for the broker to honor a quote, the system will issue a re-quote instead.
- Lower minimum deposits
- Flexible trade sizes
- Fixed spreads in most cases
- No commissions on trades
- Faster order execution
Potential Issues Related to Trading with Market-Maker Brokers
While the market maker model offers accessibility to traders with smaller initial capital, several additional factors should be considered before deciding to trade forex through a dealing desk. These factors primarily concern price transparency and the broker’s role as a counterparty.
Market makers usually take the opposite position of client trades, which may create a conflict of interest. Furthermore, while the pricing is consolidated into a single quote, the bid/ask spreads are typically wider than the raw rates available at ECN or STP brokers. This price disparity is often most pronounced during major economic news releases. Market makers may also issue frequent requotes during periods of extreme volatility, as their internal systems may temporarily suspend automated execution to manage the rapid price fluctuations.
The quality of execution for larger positions can be a significant drawback in the market maker model. Because these brokers fill orders internally rather than tapping into deep interbank liquidity, they may struggle to absorb high-volume trades without significant price adjustments or re-quotes.
- Conflict of interest
- Less competitive pricing
- Requotes during news events
- Delayed execution in high volatility
- Risk of price manipulation
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 are 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.