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Is FP Markets An ECN Broker? or Market Market? Review broker?
Is FP Markets An ECN Broker Or Market Maker? Review Broker 2024
When choosing a forex broker, traders must determine whether the broker operates as an ECN (Electronic Communication Network) broker or a Market Maker. Many traders ask: Is FP Markets an ECN broker or a Market Maker? In this in-depth FP Markets review, we will analyze the broker's trading model, features, spreads, fees, regulations, and trading conditions to provide a clear answer.
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What is an ECN Broker?
An ECN broker provides traders with direct access to the interbank market by matching buy and sell orders with liquidity providers. ECN brokers do not take the opposite side of trades but instead pass orders directly to financial institutions, offering raw spreads with low commissions. This ensures transparent pricing and no conflict of interest between the trader and the broker.
Key Features of an ECN Broker:
Direct market access to liquidity providers.
Raw spreads with commission-based trading.
No dealing desk (NDD) execution.
Variable spreads instead of fixed ones.
High-speed order execution with minimal slippage.
What is a Market Maker Broker?
A Market Maker acts as a counterparty to traders' positions, meaning it profits from traders' losses. Market Makers create an internal market where they set bid and ask prices rather than passing orders directly to the interbank market.
Key Features of a Market Maker Broker:
Fixed spreads instead of raw interbank spreads.
Internal dealing desk (DD) execution.
Potential conflict of interest, as the broker profits from clients' losses.
Slower order execution compared to ECN brokers.
Is FP Markets An ECN Broker or Market Maker?
FP Markets is widely recognized as a true ECN broker, offering Direct Market Access (DMA) with no dealing desk intervention. The broker connects traders to top-tier liquidity providers, ensuring tight spreads, deep liquidity, and fast execution speeds.
FP Markets ECN Trading Features:
Raw Spreads from 0.0 pips: FP Markets offers interbank pricing with spreads starting from 0.0 pips on ECN accounts.
Low Trading Commission: A small commission fee is charged per lot traded instead of widening the spread.
Deep Liquidity: Orders are executed with access to multiple liquidity providers, reducing the chance of requotes or slippage.
Fast Execution Speed: FP Markets provides lightning-fast execution with ultra-low latency servers.
No Dealing Desk (NDD): Orders are executed without broker interference, ensuring transparency.
FP Markets Account Types: ECN vs. Standard
FP Markets offers two main types of trading accounts:
1. Raw ECN Account
Spreads: From 0.0 pips
Commission: $3 per side per lot
Execution Type: ECN execution
Liquidity Providers: Tier-1 banks and financial institutions
Ideal For: Professional traders & scalpers
2. Standard Account (Market Maker Type)
Spreads: From 1.0 pips
Commission: No commission
Execution Type: Market Maker
Ideal For: Beginner traders who prefer all-inclusive pricing
FP Markets Trading Conditions and Features
1. Regulation and Security
FP Markets is regulated by ASIC (Australia) and CySEC (Cyprus), ensuring a secure trading environment. Client funds are segregated from company funds for additional protection.
2. Trading Platforms
FP Markets provides access to MetaTrader 4 (MT4), MetaTrader 5 (MT5), and IRESS, offering professional-grade trading tools for advanced market analysis.
3. Trading Instruments
Forex (60+ currency pairs)
Commodities (Gold, Silver, Oil)
Indices (S&P 500, NASDAQ, DAX)
Stocks (Global shares via CFD)
Cryptocurrencies (Bitcoin, Ethereum, Ripple)
4. Leverage & Margin Requirements
FP Markets offers leverage up to 1:500, allowing traders to maximize their trading potential. However, leverage levels depend on regulations and account type.
FP Markets Pros & Cons
Pros:
✔ True ECN trading with raw spreads ✔ Regulated by ASIC & CySEC ✔ Fast execution speeds with deep liquidity ✔ Supports MetaTrader 4, MetaTrader 5, and IRESS ✔ Variety of trading instruments ✔ Negative balance protection
Cons:
✖ High leverage may pose risk to beginners ✖ Commission on ECN account (but justified by raw spreads) ✖ Limited bonus promotions
Conclusion: Is FP Markets the Best ECN Broker?
FP Markets is a true ECN broker offering direct access to liquidity providers with raw spreads, fast execution, and no dealing desk interference. However, it also provides a Market Maker standard account for traders who prefer commission-free trading.
If you are looking for tight spreads, deep liquidity, and professional trading conditions, FP Markets is an excellent choice as an ECN broker.
