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Glossary

ECN / STP / Market maker(ECN / STP / Market maker)

Broker execution models: ECN routes orders to a liquidity network, STP passes them on to a provider, and a market maker takes the other side itself.

Also written as: ECN · STP · market maker · piyasa yapıcı

With ECN/STP the broker typically earns from commission and/or a small share of the spread; in the market maker model the broker's revenue can overlap with the client's losses (conflict of interest). In practice, many brokers operate a hybrid setup.

The model alone doesn't make a broker good or bad; regulation, execution quality and transparency are more decisive. Our broker guide lists each firm's model.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.