What is Difference Between ECN and MM Account in Forex?

ECN Account vs Maker Account - ECN Account Forex vs Maker Account Forex

ECN Accounts

ECN Account stands for Electronic Communication Net-work, these ECN Account forex brokers are connected to the inter bank network directly through an electronic communication network and the orders from the ECN Account are placed straight to the electronic net-work.

The ECN Account will display different orders from different banks. Quote placed by these ECNs network of banks are direct from them to the inter bank net-work & orders are executed direct to the interbank market once a trader trading with this ECN account places an order with their forex trading broker.

These ECNs account will charge commissions + spread for every forex trade. For these ECN Account execution technique every trade is matched to another in real time over the interbank network - ECN Network.

MM Accounts

Market Maker Accounts are forex broker accounts where Market Maker forex brokers have a dealing-desk model where they can match the orders in house without going to the interbank exchange market.

Forex orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This forex broker can make the decision to either execute a forex order that is the opposite of a forex trader's order thus if the trader makes a loss the broker makes a profit, & if trader makes a profit the broker makes a loss.