A broker is an independent party, whose services are used extensively in some industries. A broker’s prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property.
A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. The U.S. Securities and Exchange Commission defines a “market maker” as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price.
ECN: Electronic communication network An ECN broker is the one that its platform is electronically connected to the network of international banks or liquidity providers. When you trade forex through such a platform, indeed you are communicating and trading with the real and true international currency market. STP stands for Straight Through Processing. An ECN is
STP: Straight through processing STP stands for “Straight Through Processing” execution. In STP accounts the broker’s trading commission is included into the spread. STP spreads are variable and depend on the buy and sell orders available in FXOpen ECN. Each order is executed on the real market.