Market Maker Forex Brokers make it possible for facilitated trading to exist in record timing. Have you ever wondered how it is possible that a trader can buy or sell currency pairs in Forex at any given time? Forex is a market that trades non-stop five working days, per week. Despite the fact that it is a global event, the probability of finding a trader who is willing to make a trade in currency pairs of their choice, at any given point in the available time, is very small. However, every single trade in Forex gets completed within a matter of seconds; this is because of the function of Market Maker Forex Brokers. There are other popular types of brokers, such as NDD and STP brokers.

Market Maker Forex Brokers List

 

Broker
Description
Trade Now
Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review
XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


 

 

What are Market Maker Forex Brokers?

Market Maker Forex Brokers are market member firms that have the ability to provide buy and sell quotes, through their structure to the clients. This means that the broker fills all client requests and they are unconcerned to the traders and their decisions. They are usually considered the most trusted firms, since their system runs at the beginning of Online Trading.

Market Maker Brokers are mediators, with the role to establish a virtual market for the trader. The moment an order is placed to buy or sell, the Market Maker Forex Brokers carries out and executes the trade, irrespective of its own loss or profit.  In Forex, the list of these particular brokers comprises of investment banks, central banks, commercial banks, and big brokerage firms. These institutions are always ready, on standby, with a fixed bid or ask price. Market Maker Forex Brokers provide and offer services in both scenarios of rising and falling markets.

MM Forex Brokers are responsible for setting the bid or ask prices for the currencies they trade; they are also in charge of providing liquidity to the market, since they are willing to buy and sell currencies that no one is willing to. By using Market Maker Forex Brokers as your broker, there will be a standard and fixed bid or ask price because you are buying from or selling to them. MM Forex Brokers will, in turn, make a similar trade on the open market with a slightly better price. That is how they earn their living, through commission.

Two of the most well-known brokers for Market Maker Forex brokers are AvaTrade and Plus500

Pros and Cons of Market Maker Forex Brokers

The advantages of utilizing Market Maker Forex Brokers are that trades are guaranteed to occur and the spread will be fixed. This allows traders to have knowledge of what the spread is, which will mean that traders won’t worry over price fluctuations. Another advantage would be the reliability of these brokers, since it is considered part of the most trusted companies. The third advantage depends on the trader’s trading strategy, since it would be a less volatile quote allocation with a smoother offering, compared to STP brokers. The final advantage would be that MM Forex Brokers is always profoundly regulated by highly regarded financial authorities. There is complete transparency and there is no possible way for any misleading information or the ability to pass over on operation guidelines.

The drawback of MM Forex Brokers is that traders won’t be able to access the best possible spread prices. Most investors in the currency market take for granted that a pair of currencies can be bought or sold at a moment’s notice. Once an order is placed with a broker, the trader is able to be executed within seconds. However, it is not as easy as that.

Whenever a pair of currencies is bought or sold, there must be someone at the other end of the transaction. It is very unlikely that the investor will always find someone who is interested in buying and selling the same currency pair, with the same amount, at the same time. This allows access for the question to be asked, “How is it possible for a Forex investor to buy or sell at any given time?” This is where they come into the equation.

How Do MM Forex Brokers Generate Profit?

Market Maker Forex Brokers are established by a simple model, which means that selling to the client when they want to buy and buying from the client when they want to sell. This also shows that the broker controls the prices on the requests that are automatically filled in. When this occurs, brokers may set the mark-up or spread higher than regular prices, while “real” bank spreads are never visible to the trader. Because of this issue, there have been a few instances where the issue of conflict of interest arose, since Market Maker Forex Brokers could manipulate the price or apply certain trading strategies to the manual approach of implementation.

However, traders do not have to worry about this particular issue. Since there is a large-scale competition between various trading providers, brokers are attempting to offer competitive spread offers with the minimum margins.

There is no such thing as free service in the world we live in today; Market Maker Forex Brokers must be able to get something out of the facilities that they provide brokers. These brokers formulate their money by: buying securities at a price lower than its selling price, and selling securities at a price higher than the buying price.

In conclusion, Market Maker Forex Brokers are to profit by taking advantage of the difference between the bit and offer prices. This bidoffer spread depends on the liquidity of the market and the size of the financial transaction.

Why Do We Need MM of Forex Brokers in Forex?

Market Maker Forex Brokers in the Forex market ensure that the trade platform is always functional. They constantly update their bidoffer spread, which occurs twice in a minute, in alignment with the market updates. This is considered helpful on two different aspects. Firstly, the trader gets an accurate view of the market, in order to make decisions. Secondly, this transaction ensures market liquidity and the efficiency of currency pairs. This form of marketing solution has guaranteed the twenty-four trading system of the Forex market.

Due to the functions of Market Maker Forex Brokers, parties such as: multinational companies and registered brokers have rising tensions with other financial institutions, when it comes to the industry of Forex trading.

Conclusion of MM Forex Brokers

Market Maker Forex Brokers are market member firms that have the ability to provide buy and sell quotes, through their structure to the clients. This means that the broker fills all client requests and they are unconcerned to the traders and their decisions. Market Maker Forex Brokers are mediators, with the role to establish a virtual market for the trader. The moment an order is placed to buy or sell, the Market Maker Forex Brokers carries out and executes the trade, irrespective of its own loss or profit. Market Maker Brokers are responsible for setting the bid or ask prices for the currencies they trade; they are also in charge of providing liquidity to the market, since they are willing to buy and sell currencies that no one is willing to.

The advantages of utilizing Market Maker Brokers are that trades are guaranteed to occur and the spread will be fixed. This allows traders to have knowledge of what the spread is, which will mean that traders won’t worry over price fluctuations. Another advantage would be the reliability of Market Maker Brokers, since it is considered part of the most trusted companies. The third advantage depends on the trader’s trading strategy, since it would be a less volatile quote allocation with a smoother offering, compared to STP brokers. The final advantage would be that MM Brokers is always profoundly regulated by highly regarded financial authorities.

The drawback of Market Maker Brokers is that traders won’t be able to access the best possible spread prices. Most investors in the currency market take for granted that a pair of currencies can be bought or sold at a moment’s notice. Once an order is placed with a broker, the trader is able to be executed within seconds. However, it is not as easy as that.

In conclusion, if you are looking for a Forex broker that is allowing you to be in charge of your own trades and trading strategies, then you should consider using Market Makers Forex brokers as your broker.