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Forex ECN vs STP vs DMA vs Market Maker
What is the difference between ECN, DMA, STP and MM?
| 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-quotes | 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 | STP broker | Prime broker | Aggregator platform | Global connection | Banks & other Liquidity providers | ECN Network |
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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.
1
Min. Deposit
$10
Exclusive promotion
Leverage
30:1
New accounts
Spreads
0.1
PIPs
Regulations
CySEC, FCA, FSC
Forex Pairs
14+
No Fee
Pros:
World-class customer support in 18 languages
Account opening is fast and fully digital
Ultimate transparency with a trusted brand
Payment Methods
Bank Wire, Mastercard, PayPal, Visa, neteller, skrill
Full regulations list:
CySEC, FCA, FSC
2
Min. Deposit
$200
Exclusive promotion
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
–
No Fee
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
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Largest number of currency pairs to trade
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA