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EditorEditor: Alison HeyerdahlUpdated: April 22, 2024
AuthorAuthor: Chris Cammack

Last Updated On April 22, 2024

Chris Cammack
1

XM

Best Market Maker for Education

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2

markets.com

Market Maker with Best Trading Tools

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3

Spreadex

Best for spread betting

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4

AvaTrade

Best Mobile Trading Experience

Visit
5

IG

Best Regulated Market Maker

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6

FxPro

Largest Account Variety for a Market Maker

Visit
7

XTB

Market Maker with Best Proprietary Platform

Visit
8

FOREX.com

Best Trading Tools

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These are the best Market Maker Brokers for 2024

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Broker
Broker Score
Official Site
Min. Deposit
Max. Leverage
EUR/USD - Standard Spread
EUR/USD - Raw Spread
Cost of Trading
Total CFDs
Currency Pairs
Trading Desk
Regulators
Platforms
Website Language: English
Support Language: English
Compare
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
GBP 530:10.60 pips0.10 pipsUSD 6155457Market MakerCySEC Regulated BrokersASIC Regulated BrokersDFSA Regulated Forex BrokersInternational Financial Services CommissionFinancial Services Conduct AuthorityMT4, MT5
Markets.com
4.68 /5
Read Review
Visit Broker >
70.3% of retail CFD accounts lose money
GBP 10030:10.70 pips0.60 pipsUSD 7100956Market MakerFCA Regulated Forex BrokersCySEC Regulated BrokersASIC Regulated BrokersFinancial Services Conduct AuthorityBritish Virgin Islands Financial Services CommissionMT4, MT5, markets.com
Spreadex
4.26 /5
Read Review
Visit Broker >
64% of retail CFD accounts lose money
USD 030:10.60 pips0.60 pipsUSD 6333469Market MakerFCA Regulated Forex BrokersSpreadex, TradingView
AvaTrade
4.59 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
GBP 10030:10.90 pips0.90 pipsUSD 993063Market MakerASIC Regulated BrokersFinancial Services Conduct AuthorityCySEC Regulated BrokersFinancial Services AgencyCentral Bank of IrelandFinancial Regulatory Services AuthorityIsrael Securities AuthorityMT4, MT5, Avatrade Social, AvaOptions
IG
4.69 /5
Read Review
Visit Broker >
71% of retail CFD accounts lose money
GBP 030:10.60 pips0.85 pipsUSD 61929580Market MakerFCA Regulated Forex BrokersASIC Regulated BrokersBundesanstalt für FinanzdienstleistungsaufsichtFinansinspektionenMT4, L2 Dealer, ProRealTime
FxPro
4.39 /5
Read Review
Visit Broker >
71.58% of retail CFD accounts lose money
GBP 10030:11.40 pips0.40 pipsUSD 14224170Market Maker NDDFCA Regulated Forex BrokersCySEC Regulated BrokersFinancial Services Conduct AuthorityDFSA Regulated Forex BrokersSecurities Commission of the BahamasMT4, MT5, cTrader, FxProEdge
XTB
4.39 /5
Read Review
Visit Broker >
78% of retail CFD accounts lose money
GBP 030:10.70 pips0.70 pipsUSD 7521157Market Maker NDDCySEC Regulated BrokersFCA Regulated Forex BrokersDFSA Regulated Forex BrokersInternational Financial Services CommissionKomisja Nadzoru FinansowegoxStation5
FOREX.com
4.62 /5
Read Review
Visit Broker >
69%Hello Chrisof retail CFD accounts lose money
GBP 10030:10.70 pips0.70 pipsUSD 7564891Market MakerFCA Regulated Forex BrokersMT4, TradingView, FOREX.com Web Trader

How did FxScouts choose the best market maker brokers?

Some of the biggest and best Forex brokers in the world are market makers. However, many poorly regulated and overly expensive market makers are still in business so we always thoroughly test them before recommending them.

When comparing market makers, we:

  • Read the brokers’ execution policies and ensured they were transparent about their execution and liquidity, including whether they operated a dealing desk or non-dealing desk (NDD) model. 
  • Confirmed that the brokers were regulated by the Financial Conduct Authority (FCA) or other top-tier authorities to ensure that traders are treated fairly and that their funds are secure.
  • Checked the broker’s trading costs and compared their spreads to other brokers across all financial instruments. We also checked whether the brokers offered fixed or floating spreads. Fixed spreads mean the broker will not increase trading fees during times of high volatility or low liquidity. 
  • Checked the number of instruments available at the broker, selecting those with a broader range.
  • Downloaded and tested the broker’s trading platforms, examining their overall layout and design, functionality, and user-friendliness. We also checked which platforms were suitable for beginners and which ones were more suitable for experienced traders.
  • Examined deposit and withdrawal options for UK residents, e.g., if it’s possible to use local banking options or UK credit and debit cards and what fees are involved. We also investigated how long it takes to withdraw your funds. 
  • Contacted customer support through the various channels offered by brokers, checking response time, how knowledgeable the agents were, and whether or not they had a dedicated UK support team and phone number. 
  • Searched for brokers offering comprehensive educational resources, including articles, videos, courses, webinars, and frequently updated market analysis by an in-house research team.

Our Broker Score and Trust Rating

FxScouts’ Broker Score and Trust Rating constantly evolve to reflect the forex market’s dynamics. We ensure transparency by incorporating regulator data and user insights. Our in-depth reviews consider over 200 metrics across seven key categories:

  • Trust Rating: Assessment of broker reliability and reputation
  • Trading Costs: Spreads and fees for clear comparisons
  • Platforms: User-friendliness and features
  • Asset Selection: Forex, stocks, and other available instruments
  • Transactions: Simple and straightforward deposits & withdrawals
  • Education: Support for beginners and developing traders
  • Customer Support: Accessibility, responsiveness, and expertise

Learn how we set the standard for broker reviews. Explore our in-depth review process here.


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AvaTrade
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4.26 /5
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XM – Best Market Maker for Education

Broker Score
4.454.45 / 5
🏦  Min. DepositGBP 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Market Maker for Education

5 GBP Minimum Deposit

In-depth educational resources

 

Best for

XM is a well-regulated market maker, and a great choice for traders looking for tight spreads, a wide range of trading instruments and comprehensive education material and customer service.

Why do we like it?

We like that XM offers three simple account options with minimum deposits that start at only 5 GBP, with spreads as tight as 0.6 pips (EUR/USD). Also, XM’s education and market analysis materials are comprehensive, in-depth, and well-structured, presented by the research team in an easy-to-understand manner, highlighting trading opportunities and technical insight. 

Drawbacks

Although regulated by top-tier regulators like ASIC and CySEC, XM does not currently hold a licence from the UK’s FCA, which might be off-putting to some traders. 

Summary

XM stands out for its tight spreads on major currency pairs, alongside comprehensive educational materials and knowledgeable customer support. The platform offers three simple account types with low minimum deposits starting at 5 GBP and efficient trade execution with 99.35% of trades filled in less than a second. The range of trading instruments is also impressive, with over 1200+ instruments available, including Forex pairs, stock CFDs, commodities, equity indices, and energies. However, XM’s lack of a UK FCA licence could deter some traders.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Limited platform choice
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the FSC. 75.33% of traders lose money with this provider.

Markets.com – Market Maker with Best Trading Tools

Broker Score
4.684.68 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Platform Tools

Tight spreads

Offers trading on 2000+ stock CFDs

 

Best for

Markets.com is a great choice for traders looking for a market maker broker with advanced trading tools and a wide selection of over 2000 financial instruments, including stock CFDs, Forex, and commodities.

Why do we like it?

We particularly like that in addition to MT4 and MT5, Markets.com also offers clients trading on a wide range of assets with its own trading platform, including fundamental, technical and sentiment-based trading tools and expert analysis. It has one live commission-free account, with a minimum deposit requirement of 100 GBP and spreads starting at 0.6 pips on the EUR/USD. 

Drawbacks

The main drawbacks of Markets.com is the lack of account choices and support for third-party tools such as Autochartist and Trading Central, which are frequently available at other brokers. 

Summary

Markets.com stands out for its unique trading tools and extensive selection of over 2000 financial instruments, including stock CFDs, Forex, and commodities. It offers a single, commission-free live account with a 100 GBP minimum deposit and low commissions, ideal for active traders seeking cost efficiency. However, the limited account options and lack of third-party tool support like Autochartist and Trading Central could be seen as disadvantages compared to other brokers.

Pros
  • Regulation by top-tier authorities
  • Hassle-free withdrawal process without any fees
  • Its proprietary trading platform is praised for its user-friendly interface catering to both beginners and experienced traders
  • Competitive spreads starting from 0.6 pips
Cons
  • The maximum leverage of 300:1 could pose a risk for uninformed traders warranting cautious utilization
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 , and Markets.com platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC. 70.3% of traders lose money with this provider.

Spreadex – Best for Spread betting

Broker Score
4.264.26 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 
  • Best for spread betting
  • Fast trade execution
  • Both CFD trading and spread betting available

Best for:

Spreadex caters to traders seeking a broker with a single account with spreads down to 0.6 pips (EUR/USD) and those seeking a large range of Forex pairs, including 69 Forex pairs. 

Why we like Spreadex

Regulated by the FCA, Spreadex differentiates itself by offering an extensive range of financial assets, including over 200 ETFs and 3000+ share CFDs across two user-friendly platforms – TradingView and the Spreadex platform- with fast trade execution.

What we don’t like

A drawback to consider is the lack of a demo account facility on the Spreadex in-house trading platform, which means they must start trading on a live account.

Our Verdict

An FCA-regulated market maker, Spreadex provides a competitive edge with its 1 GBP deposit requirement and tight spreads, starting at 0.6 pips on major currency pairs like EUR/USD. It supports a variety of financial instruments, making it a good choice for traders looking to diversify their portfolios. 

Spreadex has a good range of educational resources for beginners and market analysis to keep traders up to date with the latest market movements. However, the absence of a demo account makes it difficult for traders to familiarise themselves with trading on the Spreadex trading platform.

Pros
  • Tight spreads
  • Low minimum deposit
  • Wide range of assets
Cons
  • Limited demo account
  • No swap-free account option
AlertAccepts Clients from the UK. Average spread on the EUR/USD is 0.60 pips on trading account with the lowest minimum deposit. Max leverage 30:1. Islamic account not available. Spreadex platform and TradingView supported. Spreadex is regulated by FCA.

Avatrade – Best Mobile Trading Experience

Broker Score
4.594.59 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Mobile Trading Experience

Outstanding Local UK Customer Service

Opportunity to trade on Vanilla options 

 

Best for

With a low minimum deposit and responsive customer service, Avatrade is a great market maker broker for beginners. But their specialty instruments, like vanilla options, and intermediate and advanced education sections, cater to more experienced traders as well.

Why do we like it?

We like the fact that spreads at Avatrade are some of the tightest in the industry, as low as 0.9 pips on the EUR/USD, especially for an account with only a 100 GBP minimum deposit and as is typical with market makers – no commissions are charged. It also provides traders with unique trading tools and their own innovative proprietary app, AvatradeGO.

Drawbacks

Even though well-regulated by top-tier regulators like ASIC and the CBI of Ireland, Avatrade does not currently have a licence from the UK’s FCA, which might put some traders off. Another drawback is the limited market research available, mostly curated by third-party providers and not by Avatrade analysts. 

Summary

AvaTrade offers innovative trading tools and local UK customer service, making it ideal for both beginners and more experienced traders due to its low minimum deposit and specialised instruments, like vanilla options. It stands out for its tight spreads, starting as low as 0.9 pips on the EUR/USD, with no commission. The AvaTradeGO app enhances the trading experience further. However, its lack of a UK FCA license and limited in-house market research may deter some traders.

Pros
  • Top-tier regulation and security with licenses from ASIC and CBI among others
  • Accessible trading with a low minimum deposit of 100 USD
  • Award-winning mobile trading with the AvaTradeGO app with social trading features
  • Wide range of assets including unique instruments like vanilla options
  • Educational material to support trader development and strategy enhancement
Cons
  • Market analysis could be more extensive
  • Poor regulatory oversight outside of the UK and EU
  • Avatrade is a Market Maker and operate a dealing desk which might not align with all trading preferences
AlertAccepts UK Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 76% of traders lose money with this provider.

IG – Best Regulated Market Maker

Broker Score
4.694.69 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Regulated

17000+ Trading Instruments

Weekend trading on GBP/USD, USD/JPY, and EUR/USD

 

Best for

IG is suitable for traders looking for a well-regulated broker with an extensive selection of trading instruments. It provides over 17,000 instruments across various asset classes, including innovative CFDs and GBP-denominated options, catering to a broad audience, particularly those interested in weekend trading options, usually not available at other brokers.

Why do we like it?

What we really like about IG is the comprehensive range of trading instruments and educational content. We also like that its trading platforms offer flexible trading experiences and highly competitive trading conditions, such as low spreads starting from 0.6 pips on the EUR/USD.

Drawbacks

The main drawback of IG is the credit card and PayPal deposit fees, which are higher than at other brokers. Some traders might also find the array of platforms and instruments overwhelming.

Summary

IG is acclaimed as one of the best-regulated market makers, offering an extensive selection of over 17,000 trading instruments, including weekend trading options on major currency pairs. IG also stands out for its comprehensive educational resources and customer support, as well as competitive trading conditions like low spreads starting from 0.6 pips on EUR/USD. However, drawbacks include higher deposit fees for credit cards and PayPal, and some traders may find the vast choice of platforms and instruments daunting.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts UK Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

FXPro – Largest Account Variety for a Market Maker

Broker Score
4.394.39 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 14
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best account variety

Four platform options

Fast Execution

 

Best for

FxPro is a suitable choice for traders seeking a well-regulated market maker broker with various account types and no dealing desk intervention. It offers a wide range of financial instruments, including Forex pairs and CFDs on shares, indices, commodities and spread betting options.

Why do we like it?

We like that FxPro provides a broad selection of trading instruments on four different platforms, including MT4, MT5, cTrader, and its proprietary platform, FxPro Edge. All accounts feature a minimum deposit requirement of 100 GBP, and most trades are filled in under 10 milliseconds.

Drawbacks

The main drawbacks of FxPro include higher than average trading costs compared to other brokers and its limited selection of educational and market analysis materials, making it a poor choice for beginner traders. 

Summary

FxPro offers the largest variety of account choices among market makers, including five regular plus one Islamic, catering to traders seeking diverse platforms and financial instruments without any dealing desk intervention. It provides a wide range of trading options, including Forex, shares, indices, commodities, and spread betting, across platforms like MT4, MT5, cTrader, and its proprietary platform, FxPro Edge. With fast execution speeds and a standard minimum deposit of 100 GBP, FxPro is tailored for all sorts of traders. However, it falls a bit short for beginners due to higher trading costs and limited educational resources.

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 71.58% of traders lose money with this provider.

XTB – Market Maker with Best Proprietary Platform

Broker Score
4.394.39 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

 

Best Proprietary Trading Platform

No Minimum Deposit

Exclusive Stockbroking Service for UK Residents

 

Best for

XTB caters to traders looking for a market maker broker with diverse trading instruments, low trading fees and without any dealing desk intervention. XTB provides access to a wide range of assets, including Forex, CFDs, and real stocks, with a commission-free stock trading offer for UK residents.

Why do we like it?

We especially like XTB for its proprietary trading platform, xStation5, with superior functionality, fast execution speeds and user-friendly and intuitive design. We also appreciate the cost-conscious trading with commission-free options, with pips averaging at around 0.7 pips, which is extremely low for the industry.

Drawbacks

The primary drawback of XTB is the limited choice of trading platforms, as it only supports xStation5, excluding popular platforms like MT4 and MT5. Another disadvantage is the slightly limited range of funding options compared to other big brokers, and the fees charged on some deposit and withdrawal methods.  

Summary

XTB is a market maker broker that stands out especially for its user-friendly and intuitive  proprietary trading platform, xStation5, offering a wide range of trading instruments and low fees, with no dealing desk intervention. xStation5 is praised for its functionality, speed, and ease of use, alongside comprehensive educational resources. Xtb also provides commission-free stock trading for UK residents and tight spreads on major currency pairs. However, the limitations include a lack of alternative trading platforms like MT4 and MT5, fewer funding options, and fees on certain payment methods.

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, DFSA, FCA and the IFSC. 77% of traders lose money with this provider.

Forex.com – Best Trading Tools

Broker Score
4.624.62 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Trading tools

Wide range of tradable assets 

Comprehensive selection of trading tools

 

Best for

FOREX.com is a suitable choice for anyone looking for a well-regulated market maker with a wide range of tradable assets and platform choices, including MT4, TradingView, as well as its own trading platform. Experienced traders will also appreciate the wide range of trading tools.

Why do we like it?

We especially like the selection of trading tools, including Trading Central, SMART Signals, and subsidised VPS hosting. We also appreciate the education materials and market analysis, which are detailed and cover all aspects of the financial markets, and the wide range of tradable assets, including Forex pairs, share CFDs, commodities, indices, precious metals, and cryptocurrencies.

Drawbacks

The main drawback at Forex.com is the Standard and MT4 accounts have slightly higher costs than entry-level accounts at other popular UK brokers, with spreads usually averaging around 1 pip on the EUR/USD.

Summary

Forex.com is a well-regulated market maker, offering a wide range of tradable assets and platform options, including MT4 and TradingView, as well as their own proprietary platform. It’s particularly appealing to experienced traders due to its extensive range of trading tools, comprehensive educational materials, and detailed market analysis. With a minimum deposit of 100 GBP, clients can trade various assets, including over 91 currency pairs, 5500 share CFDs, commodities, indices and precious metals. However, the primary downside is that Forex.com’s Standard and MT4 accounts have slightly higher trading costs compared to entry-level accounts at other UK brokers.

Pros
  • Well regulated
  • Wide range of assets
  • Excellent education
Cons
  • High inactivity fees
  • Limited demo account
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Forex.com Web Trader, MT4 and TradingView platforms supported. Forex.com is regulated by the FCA, CySEC, and CIMA. 68% of traders lose money with this provider.

What is a market maker broker?

A broker is called a market maker because they “make the market” for retail traders. This means they will always be the counterparty to your trade.

The Forex Market and Market Makers

To better understand how and why market makers operate the way they do, we need to understand how the Forex market works.

The vast majority of Forex trading takes place in the interbank market, trillions of dollars in currencies move between the major banks in this market on a daily basis (6.6 trillion USD per day is the 2019 estimate). It is in this space where the market is made; the prices set here, between the members of the interbank market, will be the basis for pricing in the lower volume sections of the Forex market, including the retail CFD market.

It is fair to say that the primary market makers in the Forex market are the members of this interbank market. They effectively set the rules for everyone else to play by – including market maker CFD brokers.

How do Market Makers Work?

Market makers form a bridge between the interbank market and retail forex traders. They buy up large positions from the interbank market, which they break up and sell in smaller sizes to retail clients. As market makers will be taking exposure to the risk associated with the trade (i.e. will be counterparty to the trade) they will also charge a mark-up fee on both the buy and sell prices.

The difference between the buy and sell prices is called the spread and is how market makers make most of their money. Think about it as the fee charged by the broker for creating the liquidity needed to make your trade. Most market makers will also hedge the trades they take on with a member of the interbank market, thus protecting themselves from losses – this is especially true in cases of large volume retail trades.

Market makers may also make alterations to the pricing on pair based on other factors:

  • Current exposure – a broker’s risk management team may dictate changes in pricing if they believe they are holding too many trades in one direction on a pair
  • The dealing desk’s views on future price movement – if the broker believes the GBP is overpriced against the USD, this will affect the pricing offered
  • Volume – as mentioned above, market makers will protect themselves when taking large volume trades, so will often insist on wider spreads and less leverage in these cases.

What is the difference between market maker brokers and ECN/STP Brokers?

With a market maker broker, the broker itself will be the counterparty to your trade. With an ECN broker, the counterparty to your trade will be a liquidity provider from the broker’s network.

Instead of making a market and exposing themselves to the trading risk of their clients, ECN brokers act as a middleman between the trader and the members of their networks. Rather than being the counterparty to trades, ECN brokers will match trades against the best available price from their network of possible counterparties.

Because ECN brokers take no risk exposure from the trade and sit at the centre of a web of ruthless supply and demand forces, spreads are generally very tight and trade execution speeds are often much quicker. But ECN brokers will charge commission on every trade they match – making them an expensive proposition for smaller account sizes.

Should I trade with a Market Maker?

Many traders are wary of working with market maker brokers, as they feel that there is an inherent conflict of interest in the business model. But well-regulated market makers will always offer a fair price. They cannot alter the pricing too much one way or the other before they open themselves up to arbitrage risk (the risk of traders making a profit by trading the discrepancies in pricing).

Furthermore, market makers in Europe, the UK and Australia will have strict requirements placed on them by regulators committing them to ensuring best execution of trades. Under this rule, it is illegal for market makers to skew trades to damage a client’s position.

If you are trading with a well-regulated market maker, the only real discussion to be had when considering trading through them or not is the style of broker you prefer. If you want tighter spreads and can afford commission on your trades, then an ECN broker may best – but for many retail Forex traders, this will be an unreasonable expense. It is also worth noting that many market maker brokers also offer very tight spreads and excellent all-round trading conditions.

How We Rate Market Maker Brokers

When we consider which market maker brokers are suitable for recommendation, we always look at the same factors. Each of these factors has the potential to radically alter your trading experience, and it is especially important for new traders to have trading conditions good enough to learn without being wiped out.

Regulation

Regulators ensure that market makers host a fair and transparent trading environment, all the while conducting strict auditing oversight and ensuring client fund protection. Brokers that are regulated by more than one major regulator are considered more trustworthy.

The major regulators are:

These international regulators are respected for their commitment to consumer protection, strong oversight and swift enforcement of sanctions on fraudulent brokers. They also all publish warning lists of unauthorised firms, so it is worth checking these before signing up with a broker:

FCA Warning List
ASIC Banned and Disqualified Register
CySEC Warnings

All market makers regulated by one or more of these regulators will be a fair and secure firm to do business with.

Trading Conditions

It is important to choose a market maker with the trading conditions that will support your trading strategy. Think about how much leverage you want to have available; keeping it low (100:1 or less) is a good idea if you are still learning how to trade. Also, consider what account currencies are supported by the broker and what currency pairs you want to trade, you do not want to be spending a fortune in conversion fees.

Other trading conditions to consider will be how tight the spreads are on the currency pairs you will want to trade, and what other assets are available that you may want to trade. Most Forex brokers will also offer CFD trading on commodities (such as oil, gas, etc.), precious metals (gold, silver, etc.), indices (FTSE, DAX, NYSE) and cryptocurrencies.

Account Types

Consider the different account types on offer at your broker, most market makers offer swap-free Islamic accounts, and all will offer demo accounts to practice with – the best demo accounts are unlimited and exactly simulate the real market.

Other popular account types are copy trading and social trading accounts. These will allow you to copy successful traders, who will then take a cut of your profits. A similar idea is the PAMM (Percentage Allocation Money Management) account, which is a pooled money operation, where the members of the money pool can choose what proportion of their account they want to allocate to a certain trader.

Trading Platforms

It is important to carefully choose a trading platform and find a broker that supports that platform. MetaTrader 4 (MT4) is a safe choice as it’s the industry standard and there is a multitude of online tutorials, though it is gradually being replaced with MetaTrader 5 – which has a more modern look and feel and has many features missing from MT4.

Market makers will not offer cTrader, as this is an ECN-only platform, but many will have their own in-house platforms, most of which are designed with new traders in mind so are easy to learn and have a more intuitive layout.

Broker Fees

We always check for additional broker fees that may be charged and so should you.

Market makers generally make their money from the spread, but some will also charge additional fees to further boost their profits. The most common charge is withdrawal fees, and it is good practice to always ask your broker if and how much they charge for withdrawing from your account. Generally, withdrawals fees are cheaper or non-existent when using online payment systems (such as Skrill) are used for funding your account.

We always highlight any extra fees charged by brokers in our reviews and will penalise brokers with extortionate fees.

Customer Service

Customer service is in your native language is important and many brokers offer full support in multiple languages. The best customer service will be available by live chat, email, messaging apps and over the phone. Many brokers will also offer a call-back service, so you do not have to make expensive international calls.

Good market makers offer customers support 24 hours a day, Monday-Friday and a rare few will also offer weekend service. If you are new to Forex trading you will want a broker with responsive technical support and customer support representatives with an in-depth knowledge of their products and platforms.

Education and Research

Forex education is especially important for new traders, many of the larger market maker brokers offer excellent structured Forex courses for beginners and a few will also have courses covering more advanced topics, like strategies and indicators. If you want to be a successful Forex trader you will never stop learning, so having a broker with excellent educational resources will essential.

Alongside educational support, a good broker will also have an in-house research team offering insightful market analysis on a daily, if not hourly, basis. Some market makers will leave market analysis to third-party companies such as Trading Central or TradingView – while these applications are both very useful, we find that brokers with their own analysis teams often provide better market research ideas and more useful information for new traders.

Which is the best market maker broker?

Avatrade is the best market maker broker. It is well-regulated, offers a wide range of financial instruments for trading, has a low minimum deposit, and offers tight spreads with no commissions.

Final Word

Market makers are often unfairly blacklisted by many members of the Forex CFD trading community; the truth is that well-regulated market makers are an essential part of the Forex market. By committing themselves to be counterparty to any trade they provide much-needed stability, both in terms of liquidity and in terms of market function.

With the current regulations in place, it is also impossible for market makers to work against their clients – even if they wanted to ruin their reputation and open themselves up to arbitrage in this fashion.

It is worth noting that while well-regulated market makers are trusted members of the Forex market and essential for its function, there are many unregulated (or very poorly regulated) market makers that do not behave as ethically. Therefore, it is critical that you always trade with a market maker you trust – one that has a good track record and has oversight from a major regulator.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our overall Forex Rankings report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

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