5 Best Market Makers Forex Brokers in 2022

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A large majority of Forex brokers are market makers, meaning they determine prices offered for trading to their clients, and act as counterparties to their clients’ trades. While many argue this creates a potential conflict of interest, other analysts point out that for some traders, using a market maker can result in a better and less risky trading.

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Marketsi strategy builder helps traders trade smarter
Competitive trade execution with low slippage

CFD service 72% lose money

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The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best platform for new Forex traders
Trailing stop losses
Get Started

CFD service 72% lose money

68% of retail CFD accounts lose money
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best social trading platform on the market
Excellent choice of options for crypto traders
Get Started
68% of retail CFD accounts lose money

FXTM, Best all-around: high floating leverage + fast execution.
AvaTrade, Highly regulated, choice of fixed or floating spreads.
Markets.com, Excellent educational offerings.
Plus500, Wide range of CFDs + trailing stop losses.
eToro, Best broker for social traders and crypto traders : 68% of retail CFD accounts lose money.

FXTM

5.0/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

FXTM, or Forex Time, is one of the best all-around brokers in the world. The 10-year anniversary of this fast developing forex broker was celebrated this year. This reputable broker, with a decade of experience, is now accepting traders from Cyprus, the United Kingdom, and Mauritius. You can trade a wide range of currencies, as well as gold, silver, and other precious metals, with FXTM. Traders who buy stocks through Forex Time become the complete legal owners of the stock. FXTM is the appropriate broker for you if you want to invest in commodities, CDFs, equities, metals, indexes, or oil.

Pros

  • Excellent commission-based Forex pricing environment and transparency

  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app

  • Quality market research and educational content for beginner traders

  • Proprietary copy trading platform, low minimum deposit, and high leverage

Cons

  • Limited choice of cryptocurrencies and commodities

AvaTrade

5.0/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade is a fantastic forex broker for both novice and experienced traders. While AvaTrade is available in a number of countries and has official regulator certificates in Australia, Israel, the United Arab Emirates, Ireland, the British Virgin Islands, and Japan, it is evident that the broker is best suited for traders from South Africa and the British Virgin Islands. This is especially true for traders from various parts of the world that require larger maximum leverage. With over 50 currency pairings, almost 30 commodities, many cryptocurrencies, CDFs, assets, certain bonds, metals, and much more, you will have a wide range of trading possibilities.

Pros

  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

Cons

  • Trading costs competitive but nothing special

Markets.com

4.5/5 in this category
In Summary
Excellent educational offerings

Markets.com is a UK based company that was founded in 2008. The forex broker trader that offers clients over 2000 assets to buy and sell. These assets consist of cryptos, currencies, commodities, EDFs, index EDFs, and more. The broker is regulated by four different highly respected regulating bodies, namely the Financial Conduct Authority in the United Kingdom, the Cyprus Securities and Exchange Commission in Cyprus, The Australian Securities and Investments Commission in Australia, and the Financial Sector Conduct Authority in South Africa. Markets.com is also available on the London Stock Exchange where they are listed as LSE: PTEC.

Pros

  • Competitive commission-free Forex fees from 0.6 pips

  • Well-balanced choice of trading instruments with 2,200+ CFD Assets

  • Competitive proprietary trading platform alongside MT4/MT5

  • Excellent Customer Support

Cons

  • Commodities and indices fees higher than Forex costs

Plus500

4.5/5 in this category
In Summary
Wide range of CFDs + trailing stop losses

Plus500 is a forex broker based in Sydney, Australia. The company was founded over a decade ago in 2008. Plus500 has spent the last 13 years building their reputation and fortifying their position among the top forex brokers in the world. Their efforts in doing so have been extremely successful as they are considered to have one of the best forex trading platforms with competitive rates. Beyond this, they also have a couple of regulating bodies that oversees their actions in order to ensure that all operations are above board and that their clients are protected. They are currently licensed by CySEC, the ASIC, the FMA, the FCA, the FSB, the MAS, and the FSB.

Pros

  • Well-regulated globally

  • Broad asset selection in equities and options

  • Guaranteed stop-loss order

Cons

  • Low leverage for retail traders

  • Sub-standard trading platform without support for automated or social trading

  • No research and limited, below-average educational content

  • Lack of trading tools

eToro

4.5/5 in this category
In Summary
Best broker for social traders and crypto traders : 68% of retail CFD accounts lose money

eToro was founded over a decade ago in 2007 and has since grown exponentially. The forex trader has built a user base of more that 17 million registered users on their platform. By using the eToro platform, users will have access to over 2500 assets comprising of nearly 50 currencies, almost 100 cryptocurrencies, over 30 metals and commodities, over 2000 assets, and more. eToro is regulated by the Financial Conduct Authority in the UK, the Australian Securities & Investments Commission in Australia, the Cyprus Securities and Exchange Commission in Cyprus, and the Financial Services Authority in the Seychelles.

Pros

  • Active investment community ideal for social trading

  • Dedicated tools for social trading

  • Broad cryptocurrency selection

  • Expanding educational offering for beginner traders

Cons

  • Internal withdrawal fees

  • Low retail leverage and higher minimum deposits, but within a reasonable range

Once you have decided that a market maker Forex broker suits your trading needs, you will have plenty of choices. The most important considerations you should have in making your final choice are the broker’s regulation and reputation, fees, and range of assets offered. The best approach is to make a shortlist based upon these factors then compare our assessments to see what will give you the best deal for your trading style.

Market Makers Forex Trading

Despite the widely negative portrayal of the market maker broker execution model compared to ECNs, market makers can offer a good deal to many traders. Additionally, they remain essential to the financial ecosystem and provide liquidity. Without market makers, the retail Forex market would be considerably less fluid, and trading for all would be riskier. Traders will often find that during more illiquid markets, market makers offer superior spreads, execution, and liquidity to what is offered by ECN brokers.

Market makers do not charge commissions but earn revenue via mark-up on raw market spreads which they get from their liquidity providers, who are larger (usually non-retail) brokerages or banks. For example, if the EUR/USD trades with a 0-pip spread on an ECN (electronic communications network), accessible via ECN brokers which charge volume-based commissions, a market maker might display the same with a mark-up of 0.8 pips. It covers their costs, results in profits, and usually protects market makers from a loss in the asset value after buying it from the seller and selling it to a buyer. However, market makers do take risk in effectively taking uncovered positions in the market and can find themselves fatally exposed by sudden and dramatic market movements.

Since market makers brokers have their own inventory of assets, they can also directly profit from the losses of their traders. Market makers typically operate two order books, often known as the A and B books. Traders with profitable records are assigned into the A book, with all others placed in the B book. The former is the one they access the markets with, and the latter handles internal order flows from clients. For example, if one group of traders at a market maker wish to purchase 50 lots in the EUR/USD and another group seeks to sell 100 lots, the market maker might match the 50 lots between clients in their B book and purchases the reaming 50 lots for its inventory in the A book. It can then sell the 50 lots in the open market to any buyer. The B book handles internal retail orders, and with an average of 75% to 80% of traders losing their deposits within a few months, it presents a highly profitable (but potentially very risky) business model for brokers. Market makers brokers earn money from their A book via mark-ups on raw spreads, where they compete for orders. 

There is a strong reason why it is important to be very careful in selecting a market maker Forex broker, and to use a reputable listing such as ours as a guide – the execution model can be ripe for abuse in the hands of unregulated or unscrupulous brokers. Sharp practices to watch out for include stop-loss hunting, which generates premature trading losses by spiking spreads artificially, typically using a news event as cover for plausible denial. Traders should ensure that market maker brokers offer reasonable mark-ups. The best market maker Forex brokers will quote EUR/USD spreads ranging between 0.4 pips and 0.8 pips during the London/New York overall, with all major currency pairs below 1.2 pips and most minors below 2.2 pips.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.