ECN vs Market Maker Brokers: What's the Difference?

Brokers generally fall into two camps. Knowing which one you're using helps you understand your costs and execution.

Market Maker (Dealing Desk)

A market maker takes the other side of your trade internally. Spreads are often fixed and accounts are easy to open. The potential conflict: the broker may profit when you lose, so choose a well-regulated one.

ECN / STP (No Dealing Desk)

An ECN broker routes your order to a network of liquidity providers. You get variable, often tighter spreads plus a commission, and faster execution with less conflict of interest.

Which should you pick?

• Beginners / low volume: a regulated market maker with fixed spreads can be simpler.
• Active / scalping traders: ECN usually wins on cost and execution.