When you open a CFD or forex account, the broker you choose isn’t just a platform — it’s a counterparty or a conduit to the market. ECN brokers route your orders to external liquidity providers. Market makers create their own internal market and take the other side of your trades. Both models are legal and regulated, but they work very differently. Understanding the difference helps you choose the right fit for your trading style.
Regulated market makers operating under ASIC oversight are required to act fairly and in clients’ interests. The model itself isn’t inherently problematic — it’s unregulated or poorly regulated market makers that cause harm. Many reputable brokers reviewed on this site operate a market maker or hybrid model.
A broker might be described as ECN but only offer true ECN execution on their highest-tier account. Always check which account type delivers the execution model you want, and what the minimum deposit and commission structure are for that account.