Broker safety
What is Market maker?
By the verify.trading team · Last reviewed · How we write
A market maker broker takes the other side of client trades rather than passing them to an outside market. It sets its own prices and earns from the spread and, potentially, from client losses.
Key points
- Broker is the counterparty.
- Conflict of interest to be managed.
- Read the order execution policy.
Market maker explained
That creates a conflict of interest that regulated brokers must manage and disclose. It is not by itself a sign of a bad broker, but it is a reason to read the order execution policy and to prefer a broker regulated by a strong authority.
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General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.