Market maker brokers are companies that buy and sell financial assets with the use of their own inventories. They allow markets to operate smoothly by supplying deep liquidity and provide important benefits for short-term traders.
This guide will explain how they work, plus the advantages and disadvantages you can experience by day trading with a market maker broker. We’ve also evaluated a long row of companies to bring you our pick of the best market maker brokers.
Best Market Maker Brokers 2026
These are the top market-making brokers based on our exhaustive reviews:
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- Demo account
- Platforms: MT4, MT5, TradingCentral
- Min. deposit: $5
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- Demo account
- Regulator: ASIC, CySEC, FSCA, BVI FSC
- Platforms: Web Platform, MT4, MT5, TradingCentral
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- Demo account
- Platforms: eToro Web, CopyTrader, TradingCentral
- Min. deposit: $50
61% of retail CFD accounts lose money. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. -
- Demo account
- Regulator: FCA, ASIC, FSCA, VFSC, CIMA
- Min. deposit: $50
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- Demo account
- Regulator: ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya
- Min. deposit: $0
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- Demo account
- Platforms: WebTrader, App
- Min. deposit: $100
81% of retail CFD accounts lose money.
Learn how we test brokers and why you can trust our ratings.
Here is a summary of why we recommend these brokers in October 2026:
- XM 4.8/5 XM is a globally recognized forex and CFD broker with 20+ million clients in 190+ countries. Since 2009, this trusted broker has been delivering low trading fees across its growing roster of 1000+ instruments. It also offers a comprehensive MetaTrader experience that we've observed firsthand placing test trades.
- Markets.com 4.4/5 Established in 2008, Markets.com is a long-standing, multi-regulated broker with oversight from the CySEC and FSCA. It offers unique features to track hedge fund moves and insider trades, while providing stock signals to alert traders to market opportunities. Its choice of accounts (Classic to Professional) caters to all levels of active trader. 72.3% of retail accounts lose money.
- eToro 4.0/5 eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Crypto investments are risky and may not suit retail investors. You could lose your entire investment. Understand the risks here. 61% of retail CFD accounts lose money.
- Vantage 4.7/5 Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to millions of clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
- FP Markets 4.2/5 Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to day traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.
- Plus500 4.1/5 Established in 2008 and headquartered in Israel, Plus500 is a prominent brokerage that boasts over 25 million registered traders in over 50 countries. Specializing in CFD trading, the company offers an intuitive, proprietary platform and mobile app. It maintains competitive spreads and does not charge commissions or deposit or withdrawal fees. Plus500 also continues to shine as one of the most trusted brokers with licenses from reputable regulators, including the FCA, ASIC and CySEC.
Best Market Maker Brokers Comparison
| Broker | Market Maker | Minimum Deposit | Investment Offering | Trading Platforms | Financial Regulators |
|---|---|---|---|---|---|
| XM | ✔Yes | $5 | CFDs, Forex, Stocks, Commodities, Indices, Thematic Indices, Precious Metals, Energies | MT4, MT5, TradingCentral | CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE |
| Markets.com | ✔Yes | $200 | CFDs, Forex, Stocks, Commodities, Indices, Crypto, ETFs, Bonds | Web Platform, MT4, MT5, TradingCentral | ASIC, CySEC, FSCA, BVI FSC |
| eToro | ✔Yes | $50 | CFDs, Forex, Stocks, Indices, ETFs, Smart Portfolios, Commodities, Futures, Crypto, NFTs | eToro Web, CopyTrader, TradingCentral | FCA, CySEC, MiCA, MFSA, FSRA, ASIC, FSAS, MAS, GFSC |
| Vantage | ✔Yes | $50 | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds | ProTrader, MT4, MT5, TradingView, TradingCentral, DupliTrade | FCA, ASIC, FSCA, VFSC, CIMA |
| FP Markets | ✔Yes | $0 | CFDs, Forex, Stocks, Indices, Commodities, Bonds, ETFs, Crypto | Iress, MT4, MT5, cTrader, TradingView, AutoChartist, TradingCentral | ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya |
| Plus500 | ✔Yes | $100 | CFDs on Forex, Stocks, Indices, Commodities, ETFs, Options, Crypto | WebTrader, App | FCA, CySEC, EFSA, ASIC, FMA, FSCA, MAS, ISA, FSA, DFSA, SCA, JFSA, SCB, CIRO, BAPPEBTI, OJK, BI |
Community Sentiment
See how users rate these brokers based on the average customer ratings submitted on DayTrading.com, plus ratings from Trustpilot, the Apple App Store and Google Play.
| Broker | Our Users' Rating | Trustpilot Score | Trustpilot Reviews | iOS App Rating | Android App Rating |
|---|---|---|---|---|---|
| XM | 3077 | ||||
| Markets.com | 1258 | ||||
| eToro | 32275 | ||||
| Vantage | 15839 | ||||
| FP Markets | 10371 | ||||
| Plus500 | 20176 |
XM
With a low $5 minimum deposit, advanced charting platforms in MT4 and MT5, expanding range of markets, and a Zero account offering spreads from 0.0, XM provides all the essentials for active traders.
Christian Harris, Reviewer
XM quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Commodities, Indices, Thematic Indices, Precious Metals, Energies
- Regulator
- CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE
- Platforms
- MT4, MT5, TradingCentral
- Minimum Deposit
- $5
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, JPY, ZAR
Pros
- XM’s growing roster of 1,400+ instruments provides diverse short-term trading opportunities, with unique turbo stocks, fractional shares, and more recently thematic indices.
- XM’s customer support has delivered over years of testing, with 24/7 assistance in 30 languages, response times of under 2 minutes and a growing Telegram channel.
- XM’s Zero account is ideal for day trading with spreads from 0.0 pips, 99.35% of orders executed in <1 second, and no requotes or rejections.
Cons
- While the XM app stands out for its usability and exclusive copy trading products, the selection of technical analysis tools needs to be improved to meet the needs of advanced traders.
- XM relies solely on the MetaTrader platforms for desktop trading, so there’s no in-house downloadable solution for a more beginner-friendly user experience with unique features.
- Although trusted and generally well-regulated in some regions, XM also has global entities registered with the weak regulators like FSC (Belize) and FSA (Seychelles), whilst UK clients are no longer accepted, reducing its market reach.
Markets.com
Markets.com is best suited to retail investors who trade frequently but don’t want to calculate commissions, thanks to its spread-only pricing (EUR/USD around 1.3 pips). It especially appeals to short-term traders who value fast execution, flexible asset choice spanning 2,200+ instruments and proprietary tools like hedge fund confidence indices and insider trade alerts.
Christian Harris, Reviewer
Markets.com quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Commodities, Indices, Crypto, ETFs, Bonds
- Regulator
- ASIC, CySEC, FSCA, BVI FSC
- Platforms
- Web Platform, MT4, MT5, TradingCentral
- Minimum Deposit
- $200
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK, CHF, PLN, CZK
Pros
- Markets.com’s Hedge Fund Confidence and Insider Trading tools pulls SEC filings into the dashboard within 24 hours of disclosure, helping to spot fund moves and C-suite buys before most retail newsfeeds updated.
- Switching between the proprietary web platform (great for alerts and quick analysis) and MT5 (strong for algorithmic EAs) was smooth in our tests; positions synced across desktop, web, and mobile without gaps or re-quotes.
- Markets.com provides commission-free trading on most assets with spreads starting from around 0.6 pips on major forex pairs, making it cost-effective for casual traders.
Cons
- The proprietary web platform felt a bit basic once we pushed into advanced charting with fewer drawing/indicator options than full TradingView or MetaTrader.
- While CySEC and FSCA oversight is solid, the SVGFSA and BVIFSC entities offers 1:500 leverage under a light-touch framework, meaning protections like compensation schemes and strict conduct rules lag behind the strictest regulatory standards.
- Inactivity charges kick in after just 3 months, while variable spreads are wider than top ECN brokers during testing, which may deter day traders and high-frequency traders.
eToro
eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers.
Christian Harris, Reviewer
eToro quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, ETFs, Smart Portfolios, Commodities, Futures, Crypto, NFTs
- Regulator
- FCA, CySEC, MiCA, MFSA, FSRA, ASIC, FSAS, MAS, GFSC
- Platforms
- eToro Web, CopyTrader, TradingCentral
- Minimum Deposit
- $50
- Minimum Trade
- $10
- Account Currencies
- USD, EUR, GBP, AUD, DKK
Pros
- eToro introduced EUR and GBP accounts, and more recently BTC and ETH payments, cutting conversion fees and providing a localized trading experience.
- eToro elevated the social trading experience in 2025, integrating insights from Stocktwits 10M+ users to help gauge market sentiment.
- There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses.
Cons
- There are limited contact methods aside from the in-platform live chat.
- There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital.
- The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software.
Vantage
Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly.
Jemma Grist, Reviewer
Vantage quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds
- Regulator
- FCA, ASIC, FSCA, VFSC, CIMA
- Platforms
- ProTrader, MT4, MT5, TradingView, TradingCentral, DupliTrade
- Minimum Deposit
- $50
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN
Pros
- It’s quick and easy to open a live account – taking less than 5 minutes
- Vantage maintains its high trust score thanks to its strong reputation and top-tier regulation from the FCA and ASIC
- There’s an excellent suite of day trading software, including the award-winning platforms MT4 and MT5
Cons
- A steep $10,000 deposit is needed for the best trading conditions, which include the $1.50 commission per side
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
- The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
FP Markets
FP Markets strikes an ideal balance between affordability and quality for active traders. They’ve managed to keep trading costs low while expanding their investment offering, charting tools, and research features, all while providing excellent support you can rely on for urgent trading queries.
Christian Harris, Reviewer
FP Markets quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Bonds, ETFs, Crypto
- Regulator
- ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya
- Platforms
- Iress, MT4, MT5, cTrader, TradingView, AutoChartist, TradingCentral
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- AI-powered sentiment analysis, trading signals and real-time NewsIQ research, integrated with MT4 and MT5, has been added via FP Markets Intelligence.
- With MetaTrader, cTrader, Iress and more recently TradingView, FP Markets is one of the most accommodating brokers in terms of platform choice.
- FP Markets delivers fast and dependable support, available 24/5 with average response times of less than 1 minute during testing.
Cons
- FP Markets trails the best MetaTrader brokers, despite offering a Trader's Toolbox on MT4, just 130 instruments are available, limiting opportunities for serious traders, especially compared to Pepperstone with its 1,300 assets.
- FP Markets’ Iress platform is only available to clients in Australia. It also primarily emphasizes stock trading over forex trading, and data fees can accumulate rapidly unless you're an active trader or maintain a high-balance account.
- Although Traders Hub provides rich research, notably the Daily Report, Technical Report, Market Insights, and Fundamental Analysis, it needs to widen its daily content variety and keep its forex news updated to match category leaders like IG.
Plus500
Plus500 offers a super-clean experience for traders with a CFD trading platform that sports a modern design and dynamic charting. That said, the broker’s research tools are limited, fees trail the cheapest brokers, and there’s room for enhancement in its educational resources.
Christian Harris, Reviewer
Plus500 quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs on Forex, Stocks, Indices, Commodities, ETFs, Options, Crypto
- Regulator
- FCA, CySEC, EFSA, ASIC, FMA, FSCA, MAS, ISA, FSA, DFSA, SCA, JFSA, SCB, CIRO, BAPPEBTI, OJK, BI
- Platforms
- WebTrader, App
- Minimum Deposit
- $100
- Minimum Trade
- Variable
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, CZK
Pros
- In 2025 Plus500 added new share CFDs in emerging sectors like quantum computing and AI, offering opportunities in stocks like IonQ, Rigetti, Duolingo, and Carvana
- AI Bites has been added, giving active traders real-time, AI-generated market summaries, technical analysis, and social sentiment next to charts, aiding in short-term trading decisions
- Plus500 provides a specialized WebTrader platform designed explicitly for CFD trading, offering a clean and uncluttered interface
Cons
- Educational resources are limited compared to best-in-class brokers like eToro, impacting the learning curve for beginners
- The absence of social trading means users can’t follow and replicate the trades of experienced traders
- Algo trading and scalping are not supported, which may deter some day traders
How Did We Choose The Best Market Maker Brokers?
The first and most important thing we checked is that the company is trusted.
The best indicator of a trustworthy broker is authorization from a creditable body, such as the Securities and Exchange Commission in the US or the Financial Conduct Authority in the UK.
This will help safeguard your capital, ensure you are receiving a high level of customer care, and reduce the risk of falling victim to conflicts of interest.
Following that:
- We evaluated the market maker broker’s costs in the form of bid/ask spreads, commissions and additional fees.
- We looked for companies that are transparent about their operations and pricing structure.
- We looked for brokers with a wide selection of assets and securities, ensuring you’ll have a range of opportunities and the ability to build a diverse portfolio.
- We tested the broker’s trading platform to make sure it’s enjoyable to use and that you can enter and exit positions quickly and easily.
- We selected brokers with helpful features for short-term traders, including technical analysis tools, trading guides and mobile apps that facilitate trading ‘on the go’
- We prioritized market maker brokers with excellent customer support based on our hands-on tests that consider the speed and quality of assistance.
- We investigated the amount of borrowed funds, known as leverage, that you can use to trade, as this can play an important role in day trading strategies.
Understanding Market Makers
Market makers play an essential part in trading that takes place on regulated financial exchanges. They act as the middleman between buyers and sellers of financial securities, and continuously quote prices during market hours, thus ensuring that a trade can always be executed.
The deep liquidity that these institutions provide is critical for financial markets. It allows assets to be purchased and offloaded without causing substantial price turbulence.
Furthermore, their presence ensures that short-term traders, such as day traders, can open and close positions more easily.
Market makers also act as the middlemen in over-the-counter trading, where buyers and sellers do business outside of a financial exchange.
Importantly, market makers are not the same as brokerages. While brokers bring buyers and sellers together and pass orders onto third-party liquidity providers, market makers create the marketplace for investors by buying and selling assets directly to and from them.
However, financial institutions can act as both market makers and brokers. Trading with one of these dual-role entities carries advantages for short-term traders, though you should be aware of potential conflicts of interest that may arise.
Notably, market maker brokers may have an inherent conflict of interest as they often take positions opposite to their clients, potentially profiting from client losses. They also control prices and execution, which can lead to practices like price manipulation and less favorable execution for traders.
Strict regulation means that these companies must establish robust procedures and systems to avert any such conflicts.
These include setting up Chinese walls (barriers between different divisions), establishing strict order routing rules, and conducting regular internal audits.
Royston WildAuthorHow Do Market Makers Work?
These institutions anticipate executing high volumes of buy and sell orders each day. And so they hold large inventories of assets, such as stocks, commodities, currencies and bonds, that they stand ready to trade from.
This function means that markets can keep moving by guaranteeing that a buyer and a seller can always find someone to do business with.
When markets are ‘illiquid,’ an investor may have difficulties locating another to make a trade. In these situations, the spread – in other words, the difference between the buy (or bid) and sell (or ask) prices – can be exceptionally high, resulting in greater costs to the trader.
How Do Market Maker Brokers Make Money?
Market-making brokers primarily generate profits through the bid/ask spread. They seek to buy at a lower bid price and sell at the higher ask price, and bank the difference in the process.
These institutions are still able to make money when liquidity is healthy and bid-ask spreads are kept to a minimum.
Whilst margins are small, the colossal volume of trades that are placed each day enables them to make a tidy profit.
Certain market makers will also charge fees or commissions to execute trades. However, a high level of competition means that these costs – along with the difference between bid and ask prices – do not become prohibitive for traders.
Even if a market maker charges a trading fee, this can often be lower than that imposed by other brokers (like agency brokers).
Royston WildAuthorExample Trade
Let’s say that I wish to trade shares in Colin’s Computers using a market maker broker. I believe prices of the company will rise in price, and decide to buy 100 shares in the business to capitalize on this. The company currently trades at $50 per share.
To begin with, I’ll have a look at the bid and ask prices on my market-making broker’s trading platform. They are listed as:
- Bid price: $49.90
- Ask price: $50.10
This results in a bid/ask spread of $0.20.
When I place my buy order for 100 Colin’s Computers shares, the brokerage will match my instruction with existing sell orders on the market. If there is a seller who’s happy to offload their shares at $50.10, my order will be executed at this price.
In this case, how much profit would the market maker receive?
First off, let’s have a look at the total cost of the trade to me. This stands at $5,010 ($50.10 x 100 shares).
Now let’s assume that the market maker initially bought those shares for their inventory at the lower price of $49.90 each. Their profit would come in at $20 (the bid/ask spread of $0.20 x 100 shares).
Bottom Line
Deep liquidity is the key to straightforward and cost-effective trading. And by using market-making brokers, traders can enjoy an optimal dealing experience and improve their chances of making a profit.
However, using one of these brokerages to trade also presents risks that individuals need to be constantly mindful of. That’s why we recommend choosing one of our top-rated market maker brokers.
FAQ
What Is A Market Maker?
A market maker is a firm or broker that provides bids and offers of a two-sided market along with the market size of each. By trading on both sides of the market, these companies provide a platform for trading, making their money through spreads.
Do Market Maker Brokers Manipulate Prices?
Market maker brokers set their own bid/ask prices, which makes it possible for them to manipulate asset prices. However, competition is so stiff that spreads offered by market makers are generally tight.
Finding a market maker broker that is registered with a respected authority will help prevent you from being scammed or manipulated.
Do Market Maker Brokers Own Stock?
A market maker will buy stock from you and hold it until it finds another buyer. During this time, the broker does own that stock. However, they do not hold shares for their own benefit.
What Are The Advantages Of Trading With A Market Maker Broker?
Market maker brokers with healthy liquidity allow traders to enter and exit positions rapidly, thus enabling you to swiftly capitalize on trading opportunities that arise. This also helps reduce the threat of slippage, where the expected and actual prices of a trade differ due to timing issues.
Also, many such brokers offer fixed spreads, which appeal to beginners especially, providing a clear picture of how much a trade will cost.
What Are The Risks Of Trading With A Market Maker Broker?
While their operations are often closely observed by regulators, the potential for market-making brokers to act in their own interests at the expense of traders is always present.
Also, market makers may not provide the same level of price transparency as other brokers, such as ECN trading plarforms.
Additionally, with ECN brokers, it is possible to trade prices at certain times with little or no spread. This means day traders can often get better prices with these companies than with market makers.