Good market makers Forex brokers should have low spread costs and no commissions. We look at the best market makers to trade with.
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The Best Market Maker Forex Brokers are:
Markets.com is a market maker broker that offers top trading platforms, diverse market access, and a unique selection of trading tools. Whether you are a beginner trader starting out, or an experienced trader looking to automate trading, Markets.com is the best market maker overall thanks to:
Since Markets.com is a market maker, this means you will have spreads with no commissions. This is different from an ECN pricing broker or no dealing desk broker which offers tighter spreads but has commission costs you need to pay on top of the spread.
Markets.com offers some of the best spreads in the market for the standard account. While Markets.com does not provide their average or typical spreads, we spent time observing their live spreads and found they compare well to standard accounts brokers.
The below module compares a range of brokers with Standard accounts that have no commissions. These data in the module are the average or typical spreads taken from each broker’s website and updated each month.
You can see the live spreads we observed with Markets.com are superior to each broker’s average spreads. While average spreads are not the same as live spreads, you will be hard-pressed to find lower spreads. Pepperstone, IG, Oanda for example advertise their Standard account spreads as being from 0.6 pips, CMC Markets as low as 0.7 pips, Forex.com from 0.8 pips XM, and HotForex from 1.0 pips, and FXTM as low as 1.5 pips. So given we actually observed Markets.com spread as matching other brokers’ minimum spreads, it is fair to say Markets.com spreads are very low.
Data taken from broker website. Accurate as at 04/06/2021
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In total, Markets.com offers 67 different forex pairs with variable spreads. For major currency pairs like the EUR/USD spreads can be as low as 0.6 pips, with no commission fees. Other majors such as the EUR/JPY or AUD/USD are also very competitive, averaging 0.90 pips commission-free.
As well as foreign exchange, retail traders can diversify their trading strategies with a wide selection of asset classes that are available to trade as CFDs:
One of Markets.com most interesting products for trading are their blends. Blends are sometimes called stock baskets and are a type of index that combines stocks for a particular theme or sector to give you wider exposure in your portfolio. Options for blends include:
The other product for trading that is of interest is Markets.com range of Cryptocurrencies. Markets.com offers 25 cryptocurrencies for trade which is more than any other broker we have seen. In addition to the common Bitcoin, Ethereum, Ripple, and Dash that you commonly find with brokers, Markets.com offers rare ones like Tezos, Compound, and Chainlink.
As a Markets.com retail trader, you can choose between four different trading platforms. Marketsx, Marketsi, MetaTrader 4, and MetaTrader 5.
Marketsx is a proprietary CFD trading platform that will give you access to the broker’s full range of financial instruments along with excellent technical, fundamental, and sentiment trading tools. Key features include:
Marketsi is a proprietary trading platform that comes with tools designed for stock trading and longer-term investments. You can create stock trading strategies using the platform’s tools such as the Investment Strategy Builder, with personalised VIP service to help you along the way. Marketsi range of stocks for trading is impressive, with over 7,500 different stocks from 16 global exchanges.
If you want to focus on share trading and use the broker’s Marketsi platform, you are required to sign up to Markets.com CySEC regulated subsidiary.
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are available for those wanting to achieve automation via Expert Advisors (trading bots). The market making broker doesn’t offer its full range of CFDs, yet unlike its proprietary platforms, you can fully automate trading using Expert Advisers which is a prerequisite for many forex traders.
As well as algorithmic trading, MT4 and MT5 are popular among those developing hedging and scalping strategies thanks to advanced inbuilt charting tools. The platform enables you to conduct sophisticated technical analysis with extensive indicators, drawing tools, and objects available.
Markets.com is considered a trusted and safe broker as it operates under a publically listed company that is part of the FTSE 250 index. Additionally, the market maker is overseen by various top-tier financial regulators including the FCA in the UK, CySEC in Cyprus, ASIC in Australia, and the FSCA in South Africa. Elsewhere, the FSC in the British Virgin Islands regulates the broker’s global operations.
Markets.com is the best market maker overall thanks to tight spreads, a great range of trading platforms and tools, plus top-tier regulation. Whether you want to focus on forex and CFDs, stock markets, or algorithmic trading strategies, the broker provides a purpose-built trading platform. A wide range of CFD trading products are available with forex spreads starting from 0.90 pips commission-free.
View Markets.com Review >>Visit Markets.com >>
The overall rating is based on review by our experts
eToro is a hybrid market maker broker that offers one of the most popular social trading platforms worldwide. Its popularity stems from a range of features, including:
eToro boasts one of the globe’s largest social trading communities, with millions of traders from 140+ countries. To automate trading, you can use the broker’s CopyTrader feature that allows you to find other traders you want to follow, and copy the trades they make.
You also have the option of automation via CopyPortfolios, yet instead of duplicating the strategies of individual traders, you copy a portfolio that’s made up of a basket of financial instruments. The portfolio is managed and rebalanced by eToro’s experts, saving you time and effort making individual trades. There are two types of CopyPortfolios that eToro offers:
eToro promotes a hybrid market maker model with a combination of market maker and NDD/STP features. While many market makers exclusively use their own liquidity to fill forex traders’ orders, hybrid models both pass on trades to external liquidity providers and absorb some exposure in trades themselves.
eToro is a hybrid market maker that uses a combination of a dealing desk and NDD/STP execution. The broker is one of the most popular worldwide for copy trading, with a wide range of account mirroring and social features.
EasyMarkets is a traditional market maker broker that is well-known for its unique risk management tools. The broker’s top five features include:
easyTrade allows you to limit your risk when trading forex while eliminating the need for margin requirements and stop-loss orders. It takes three simple steps to set up your easyTrade – you specify the amount you are willing to risk, the trade duration, and whether the exchange rate will increase or decrease in value.
dealCancellation allows you to choose a window where you can undo losing trades when the market moves against you. For a fee, you can pick a one, three, or six-hour margin to cancel your trade, eliminating some risk from trading big events or volatility.
dealCancellation is only available on the broker’s day trading products like gold, silver, oil, and forex.
The Freeze Rate tool allows you to freeze the price you see, giving you some breathing room to set up and execute your trade. The price is frozen for 3 seconds which may be very useful in volatile conditions.
The broker’s unique risk management tools such as easyTrade, dealCancellation, Freeze Rate, and free guaranteed stop-loss orders make easyMarkets one of the best market makers for risk management. To supplement its trading tools, the broker is regulated by tier-1 authorities including CySEC and ASIC.
View easyMarkets Review >>Visit easyMarkets >>
CMC Markets is one of the longest-standing forex brokers with a traditional market maker model. Established in 1989 in the UK, CMC Markets is popular as the company is publically traded on the London Stock Exchange (LSE), as well as being overseen by multiple tier-1 regulators.
CMC Markets offers one of the largest selections of currency pairs currently available to retail traders. Over 300 major, minor and exotic forex pairs can be traded commission-free as spot or forward pairs. Spreads are low starting from 0.7 pips for the AUD/USD, USD/JPY, and EUR/USD. Other commonly traded currency pairs like the GBP/USD also offer competitive variable spreads as low as 0.9 pips.
As well as hundreds of currency pairs, you can speculate on a range of financial markets by trading CFDs. Shares, ETFs, commodities, indices, and treasuries are offered by CMC Markets.
To get access to all of CMC Markets financial instruments you’ll need to use the broker’s proprietary trading platform, Next Generation. With a choice of either a beginner or advanced interface, the Next Generation platform is ideal for all levels of trading experience. The platforms key features include:
CMC Markets also offers MetaTrader 4 (MT4) if you are looking for algorithmic trading features. While you’ll have more restricted market access than Next Generation users, you’ll be able to fully automate trading with Expert Advisors. The MT4 platform is available as a desktop platform, Webtrader platform, or mobile trading apps.
The market maker broker is ideal for traders looking for the best trading platforms combined with a wide range of forex pairs. Over 300 spot and forward currency pairs can be traded with no commission spreads from 0.7 pips.
View CMC Markets Review >>Visit CMC Markets >>
With nearly 50 years of experience providing trading services, IG is a reputable broker available to most retail traders worldwide. Using a traditional market maker pricing and execution model, the broker offers both CFD and traditional share trading.
IG provides access to one of the most diverse selections of CFDs with a staggering 17,000 financial instruments to choose from.
To develop and execute trading strategies, the broker provides access to an array of trading platforms. On top of IG’s proprietary platform (Webtrader or mobile apps), you can use ProRealTime for advanced charting, MetaTrader 4 for automation, of L2 Dealer for direct market access (DMA).
With a staggering 17,000 financial instruments available to trade, IG offers some of the best market access available to retail traders. You also get a range of trading platforms to choose from that suit different needs, including proprietary software and MetaTrader 4.
View IG Markets Review >>Visit IG Markets >>
AvaTrade is a traditional market maker broker that offers CFD trading with both cryptocurrencies and currency pairs included in its product range. While many market makers provide variable spreads, AvaTrade only offers fixed spread account types.
In terms of trust and safety, AvaTrade is regulated by various financial authorities around the globe, including CySEC in Cyprus, ASIC in Australia, and the NFA in Japan.
AvaTrade is a great option if you are wanting to focus your trading strategies around cryptocurrency CFDs. Seven major cryptos can be traded with no commission fees. As well as trading the cryptos against the USD, crypto/fiat pairs are available (JPY, EUR, and others).
Crypto CFDs offered by AvaTrade include:
Disclaimer: as with foreign exchange, cryptocurrency markets very volatile and come with a high risk of losing money. It is important to incorporate risk management techniques into your trading strategy, along with using a regulated broker such as AvaTrade.
With 7 major cryptocurrency CFDs available, AvaTrade is a top option for crypto traders wanting a trusted broker with strong regulation.
View AvaTrade Review >>Visit AvaTrade >>
XM is a market maker that is well-known for its low variable spreads and range of commission-free account types. To start trading, you can choose from two of the world’s most popular platforms being MetaTrader 4 (MT4) and MetaTrader 5 (MT5), both of which offer three account types.
The initial minimum deposit to open an account with XM is low compared to other brokers. Only $5 is needed to open a Micro or Standard Account, while only $50 is required for an Ultra-Low Account.
Each account type allows hedging, and an Islamic account option is available for those following Sharia Law.
XM is a top market maker with tight no commission spreads from 0.6 pips. To access the broker’s lowest spreads, you’ll need to sign up for an Ultra Low account type, where a low minimum deposit of $50 is needed.
Regardless of the XM account type you sign up for, you can choose between MetaTrader 4 or MetaTrader 5 as your trading platform.
View XM Review >>Visit XM >>
Interactive Brokers is a top broker that offers a market maker-designed trading platform ideal for experienced traders.
Trader Workstation (TWS) Mosaic is a fully customisable platform where you can trade the broker’s full range of financial instruments while conducting comprehensive technical analysis and risk management.
For instance, The IB Risk Navigator is a real-time risk management tool that measures risk exposure across multiple asset classes around the world. Additionally, over 100 order types and algos are available to TWS users to help minimise the high risk of trading, enhance execution, and simply trading.
If you prefer a simpler platform and interface, the market maker broker also offers a beginner-friendly mobile trading app and Webtrader option (Client Portal). Regardless of the trading platform you choose, Interactive Brokers provides access to over 100 currency pairs.
Interactive Brokers Trader Workstation offering is a great choice for those wanting a market maker optimised trading platform with advanced trading and risk management tools. A good range of currency pairs is available, along with a mobile app.
View Interactive Brokers Review >>Visit Interactive Brokers Markets >>
A market maker is a type of brokerage model that is common in forex trading. Market makers use a dealing desk and their own liquidity to fill clients’ orders. This is compared to no dealing desk (NDD) brokers that use electronic communications network (ECN) or straight-through processing (STP) execution.
Unlike no dealing desk brokers (NDD) that pass your trade onto external liquidity providers, market maker brokers are the counterparty to your trade and fill orders using their own internal liquidity.
Some of the world’s most popular brokers such as CMC Markets, Markets.com and eToro are market makers. While CMC Markets is a traditional market maker, brokers like Markets.com and eToro follow a hybrid model where they use a combination of dealing desk and no dealing desk execution.
A market maker is a type of brokerage firm where a dealing desk and internal liquidity are used to fill orders. The key features of a market maker are that they set their own bid and ask prices, and act as the counterparty to your trade. Conversely, electronic communication network (ECN) and straight-through processing (STP) are no dealing desk brokers that use external liquidity sources to determine the spreads they offer traders, as well as fill orders.
There are pros and cons to both types of brokerage models. As STP and ECN brokers use a range of external liquidity providers and connect to the interbank market, spreads tend to be more competitive. Yet, market makers generally offer better risk management tools and you may be better protected against volatile markets.
As market makers set their own bid-ask prices, commission fees are often included in the spread. Yet, some believe market makers have a conflict of interest as they set their own prices and are the counterparty to your trade. Although you will usually get better pricing with STP and ECN brokers, the combination of strong risk management tools and commission-free spreads can appeal to beginners with little forex trading experience.
This information is not intended as trading strategy or investment advice. It is purely a summary of different market makers’ offerings. Please note, trading forex and CFDs is high risk. Ensure you aware of the risks and avoid scams by trading with regulated brokers.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.