HomeForex Broker TypesBest Agency Model Forex Brokers 2021

Best Agency Model Forex Brokers 2021

What exactly is an “Agency model” Forex Broker?

“Agency model” is just a fancy name for “No Dealing desk”. That’s it. Simple, straight.

In other words, in Forex there is an Agency model dealing and Principal model dealing.
Agency model = No dealing desk (STP, ECN, DMA)
Principal model = Dealing desk (Market maker)

Where did it all come from?

Never popular before, the term “Agency model” has been re-introduced around 2012-2014.

A few large Forex brokers simply announced that they’re now turning away from Market Maker practices and into an Agency Model dealing.

This sure sounded attractive to all newcomers, who barely understood what “Agency Model” means, but at least it was clear that there will be no more Dealing desk (Market making) involved. And that fit the bill.

Agency Model Forex Brokers List

1
Min. Deposit
$100
Exclusive promotion
Our score
10
Leverage
30:1
New accounts
Spreads
0.7
PIPs
Regulations
NFA, CFTC, FCA
Forex Pairs
No Fee
Start trading
Pros:
Open an account in less than 5 minitues with the global Market leader since 2001
Trade on one of the world's most popular trading platforms with access to dedicated support and integrated trading tools exclusive to FOREX.com
We’ve spent over a decade investing in technology and building a deep network of liquidity partners, so we can consistently quote tight spreads in most market conditions.
Payment methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Full regulations list:
NFA, CFTC, FCA, FSA, IIROC, CIMA, FFA Japan, MAS, SFC of Hong Kong
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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
Min. Deposit
$10
Exclusive promotion
Our score
9.3
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start trading
Pros:
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Payment methods
Credit Card, Debit Card, Bitcoin, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.

This will be a long list since it includes all NDD Forex brokers: STP, ECN/STP and DMA/STP.
To narrow down your search, please use our Advanced Broker Search Tool

How “Agency model” works

In the FX market, the Agency model Forex brokers act as agents. They accept orders from clients and send them to the liquidity providers. By being a simple intermediary, agency model brokers don’t execute trades themselves, and hence have no conflict of interests with their clients and partners.

On the contrary, Principal model brokers will accept and execute clients orders themselves, thus acting as a principal = a dealing desk, and here the conflict of interests can arise.

Hybrid model (Agency + Principal)

Nowadays, many brokers have chosen a Hybrid model (Agency + Principal dealing).

In the Hybrid model, instead of being a simple intermediary (a so called “corridor” between clients and liquidity providers),
Hybrid Forex broker executes 2 trades with each side: first, he fills clients orders himself as a Principal, and then goes to the liquidity providers to executes another trade with them, hence acting as an Agent this time.

An example of the Hybrid model these days would be FxPro:
Quote: “FxPro’s execution model works in the following manner: the flow of trades is internalized before any positions/trades are externally hedged. The internalization process is based on very rigorous and detailed risk management techniques centred on many risk parameters, which are continuously evaluated and monitored by the senior management.”

Many brokers found the Hybrid model being more commercially viable than the pure Agency model.