ECN, STP, or market maker: what the labels do and do not mean
Posted: Thu Oct 29, 2026 11:29 am
Broker marketing uses terms like ECN, STP, and market maker as though they were precise categories. In practice, they are loose, and the real model often mixes elements.
A market maker quotes its own prices and takes the other side of client trades. An STP broker passes orders to liquidity providers with no dealing desk intervention, though it may still add a markup. An ECN matches orders with other participants, including banks and other traders, and typically charges a commission.
The names do not guarantee behaviour. A broker advertising ECN pricing may still use last look from its liquidity providers. One described as a market maker may offer very competitive fills.
The reliable way to judge is by measurement: spreads, slippage, rejections, and speed on the pairs and sessions that matter. The model label is a hint, not a result.
It is also worth reading the order execution policy, where the broker explains how orders are handled, and comparing it against the advertising.
Which label does your broker use, and does the execution you actually see match the description?
A market maker quotes its own prices and takes the other side of client trades. An STP broker passes orders to liquidity providers with no dealing desk intervention, though it may still add a markup. An ECN matches orders with other participants, including banks and other traders, and typically charges a commission.
The names do not guarantee behaviour. A broker advertising ECN pricing may still use last look from its liquidity providers. One described as a market maker may offer very competitive fills.
The reliable way to judge is by measurement: spreads, slippage, rejections, and speed on the pairs and sessions that matter. The model label is a hint, not a result.
It is also worth reading the order execution policy, where the broker explains how orders are handled, and comparing it against the advertising.
Which label does your broker use, and does the execution you actually see match the description?