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ECN vs DMA vs STP vs Market Maker

What is the difference between ECN, DMA, STP and MM?

1
Min. Deposit
$10
Exclusive promotion
Our score
10
Leverage
30:1
New accounts
Spreads
0.1
PIPs
Regulations
FCA, CySEC, FSC
Forex Pairs
14+
No Fee
Start trading
Pros:
World-class customer support in 18 languages
Account opening is fast and fully digital
Ultimate transparency with a trusted brand
Payment methods
PayPal, Neteller, Visa, Mastercard, Skrill, Bank Wire
Full regulations list:
FCA, CySEC, FSC
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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
$500
Exclusive promotion
Our score
9.3
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
1500+
No Fee
Start trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% 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.
MM STP DMA ECN
Full name Market Maker Straight Through Processing Direct Market Access Electronic Communication Network
Broker structure DD STP + NDD DMA + STP + NDD ECN + DMA + STP + NDD
Dealing model Dealing Desk No Dealing Desk No Dealing Desk No Dealing Desk
Execution Instant Execution Instant & Market Execution Market Execution Market Execution
Spreads fixed fixed & floating floating floating
Pricing 4 & 5 digits 4 & 5 digits 5 digits 5 digits
Commission no no no & yes yes
Who is on the other side of your trade Your broker Orders sent to another broker Orders sent to several other brokers/banks Orders sent to the ECN network
Conflict of interests yes no no no
Depth of the Market (DOM) no no no & yes yes
Speed of execution regular regular fast fast
Re-qoutes yes yes no no
Slippage yes yes yes yes
News trading no no yes yes
Scalping no & yes no & yes yes yes
Deposit requirements amount low low average high
Spread cost high average low very low
Illustration:Trader
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STP broker
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Prime broker
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Aggregator platform
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Global connection
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Banks & other Liquidity providers
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ECN Network		 ECN vs Market maker ECN vs STP ECN vs DMA ECN vs DMA vs STP
1
Min. Deposit
$10
Exclusive promotion
Our score
10
Leverage
30:1
New accounts
Spreads
0.1
PIPs
Regulations
FCA, CySEC, FSC
Forex Pairs
14+
No Fee
Start trading
Pros:
World-class customer support in 18 languages
Account opening is fast and fully digital
Ultimate transparency with a trusted brand
Payment methods
PayPal, Neteller, Visa, Mastercard, Skrill, Bank Wire
Full regulations list:
FCA, CySEC, FSC
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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
$500
Exclusive promotion
Our score
9.3
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
1500+
No Fee
Start trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% 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.
Related topics:
ECN Forex brokers – in-depth description & comparison
DMA Forex brokers – DMA vs ECN vs STP
STP Forex brokers – difference and trading conditions

Abbreviation:

  • ECN – Electronic Communication Network
  • DMA – Direct Market Access
  • STP – Straight Through Processing
  • NDD – No Dealing Desk
  • DD – Dealing Desk
  • MM – Market Maker

Searching for the best brokers is always important in any market but the FX market will always stand out because it’s the largest in the world, these broker types will affect how you trade so make sure you choose the correct one.