7 minute read
Is JustMarkets a Market Maker? Let’s Break It Down
from JustMarkets
by Exness_India
If you’re wondering whether JustMarkets is a market maker, the short answer is: it’s not strictly a market maker, but it’s not purely an ECN broker either. JustMarkets operates with a hybrid model, combining elements of Straight Through Processing (STP) and market maker practices to execute orders. This setup allows them to offer tight spreads, fast execution, and competitive trading conditions, but it’s worth digging into the details to understand what this means for you as a trader. In this article, we’ll explore JustMarkets’ broker model, how it impacts your trading, and what you need to know to make an informed decision. Let’s dive in!
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What Exactly Is a Market Maker?
Before we get into JustMarkets’ specifics, let’s clarify what a market maker is. A market maker is a broker that takes the opposite side of your trade to provide liquidity. Essentially, when you buy or sell, the broker acts as the counterparty, ensuring your order gets filled even if there’s no matching order in the market. This can lead to faster execution and tighter spreads, but it also raises concerns about potential conflicts of interest—since the broker profits when you lose.
On the other hand, an ECN (Electronic Communication Network) broker connects your trades directly to the interbank market, matching your order with other traders or liquidity providers. ECN brokers typically charge a commission but avoid taking the opposite side of your trade, reducing the conflict of interest. An STP broker routes your orders to liquidity providers without acting as the counterparty, often blending features of both models.
So, where does JustMarkets fit into this spectrum?
JustMarkets’ Broker Model: A Hybrid Approach
JustMarkets isn’t strictly a market maker, nor is it a pure ECN broker. According to industry insights and client feedback, JustMarkets employs a hybrid model that blends STP and market maker execution. This means that for some trades, your orders are routed directly to liquidity providers (like an STP broker), while in other cases, JustMarkets may act as the counterparty to ensure fast execution and tight spreads.
Here’s what this hybrid model looks like in practice:
Tight Spreads: JustMarkets offers spreads starting as low as 0.0 pips on certain account types, like the Raw Spread account. This is a hallmark of market maker brokers, as they control pricing to remain competitive.
Fast Execution: Orders are filled in fractions of a second, which is typical of market makers who prioritize liquidity and speed.
No Requotes: JustMarkets emphasizes no requotes, a feature often associated with market makers who internalize orders rather than relying solely on external liquidity.
High Leverage: With leverage up to 1:3000 for accounts under $1000, JustMarkets caters to retail traders, a common trait among brokers with market maker tendencies.
However, JustMarkets also routes some orders to external liquidity providers, especially for larger trades or specific account types, which aligns with STP practices. This hybrid approach allows them to balance cost efficiency with reliable execution, but it also means their model isn’t as transparent as a pure ECN broker.
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How Does This Affect You as a Trader?
Now that we know JustMarkets operates a hybrid model, let’s talk about what this means for you. The broker’s setup has both advantages and potential drawbacks, depending on your trading style and priorities.
Pros of Trading with JustMarkets
Competitive Spreads: With spreads starting at 0 pips on certain pairs (e.g., EUR/USD, USD/JPY), JustMarkets is a cost-effective choice for scalpers and day traders. Low spreads can significantly reduce your trading costs, especially if you trade high volumes.
Fast Execution: The hybrid model ensures orders are executed quickly, often in milliseconds, which is crucial for strategies like scalping or trading volatile markets.
Low Minimum Deposit: You can start trading with just $1 on a Standard account, making JustMarkets accessible to beginners or those with limited capital.
No Servicing Fees for Copy Trading: JustMarkets offers copy trading on MetaTrader 4 without additional fees, only charging spreads or commissions based on your account type.
Variety of Instruments: Beyond forex, you can trade stocks, commodities, indices, and cryptocurrencies, giving you flexibility to diversify your portfolio.
Potential Drawbacks
Conflict of Interest: As a hybrid broker with market maker elements, JustMarkets may act as the counterparty to some of your trades. This could raise concerns about whether they’re incentivized to profit when you lose, though there’s no evidence of unfair practices.
Limited Research Tools: JustMarkets provides in-house market breakdowns and forecasts, but it lacks third-party tools like Trading Central or Autochartist, which some advanced traders rely on for analysis.
Not Ideal for Beginners or Advanced Traders: The broker’s educational resources and advanced tools are somewhat limited, so absolute beginners or highly technical traders might find better options elsewhere.
High Overnight Charges: Some traders report elevated swap fees, which could impact those holding positions overnight.
Is JustMarkets Trustworthy?
A common concern with market maker or hybrid brokers is trustworthiness. JustMarkets has built a solid reputation, serving over a million clients in 160+ countries and earning industry awards like Best Forex Trading Platform and Best Broker in Asia. They operate under multiple regulatory bodies, including:
Just Global Markets Ltd in Seychelles
Additional offices in Cyprus, South Africa, and Mauritius
While Seychelles regulation isn’t as stringent as, say, the FCA or ASIC, JustMarkets emphasizes data protection and secure payments, aligning with international security standards. Client reviews generally praise their tight spreads, fast execution, and customer service, though some note the lack of advanced research tools.
How to Decide If JustMarkets Is Right for You
Choosing a broker depends on your trading goals, experience level, and risk tolerance. Here’s a quick guide to help you decide if JustMarkets’ hybrid model suits you:
You’re a Scalper or Day Trader: The tight spreads, fast execution, and high leverage make JustMarkets a strong choice for short-term trading strategies.
You’re a Beginner: The low minimum deposit and user-friendly MetaTrader 4/5 platforms are beginner-friendly, though you may need to supplement with external educational resources.
You Prefer Copy Trading: JustMarkets’ no-fee copy trading feature is a big plus if you want to follow experienced traders without extra costs.
You Need Advanced Tools: If you rely on third-party research or low-risk securities like ETFs, you might find JustMarkets’ offerings limited.
Tips for Trading with a Hybrid Broker Like JustMarkets
If you decide to trade with JustMarkets, here are some tips to maximize your experience:
Choose the Right Account Type: JustMarkets offers Standard, Pro, and Raw Spread accounts. The Raw Spread account is ideal for scalpers due to its 0-pip spreads and fixed commission, while the Standard account suits beginners with no commission.
Monitor Swap Fees: If you hold positions overnight, keep an eye on swap fees, as they can add up.
Use Risk Management: With leverage up to 1:3000, it’s easy to overextend. Always use stop-loss orders and trade within your risk tolerance.
Leverage Their Market Breakdowns: JustMarkets’ daily market analysis can help you spot trading opportunities, especially for day trading.
Test with a Demo Account: Before committing real funds, try their demo account to get a feel for their execution and spreads.
Final Thoughts: Is JustMarkets a Market Maker?
To wrap it up, JustMarkets isn’t a pure market maker—it operates a hybrid model that blends STP and market maker practices to offer tight spreads, fast execution, and high leverage. This setup works well for scalpers, day traders, and those looking for low-cost trading, but it may not suit traders who need advanced research tools or prefer a fully transparent ECN model. With a strong reputation, global reach, and competitive conditions, JustMarkets is a solid choice for many traders, but always weigh the pros and cons against your specific needs.
✅ Trade with JustMarkets now: Open An Account or Visit Brokers 👈
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