Which brokerage model to choose: ECN / STP or Market Maker?

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Which brokerage model to choose: ECN / STP or Market Maker?

Postby kreslik.news » Thu May 12, 2016 8:51 am


Today I want to discuss common brokers’ models in order to help  start-up brokers to understand the main advantages and disadvantages of each model and to  choose an appropriate way of starting their business. There are three main types to choose from:  ECN / STP, Market Marker (MM) and a Hybrid model.

ECN/STP

The concept of ECN means Electronic Communication Network, it is used to show that the broker is connected to electronic trading system, where competing bids and offers are sent to one pool. Under STP we understand Straight-Through-Processing model, which is used to show that the broker does not intervene ... (read more)

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