ECN vs Market Maker

An ECN (Electronic Communication Network) broker routes your orders directly into a pool of liquidity providers — banks, other brokers, and traders — so you trade at real market prices, usually paying a separate commission plus a very tight, variable spread. A market maker broker instead takes the other side of your trade internally, quoting its own (often fixed or wider) spread. This can create a conflict of interest that regulators require to be disclosed and managed. Neither model is inherently better for every trader — ECN accounts typically suit high-frequency or larger traders who value tight spreads and price transparency, while market-maker accounts often suit smaller accounts with simpler, all-in pricing.