The CIF license of PFX Financial Professionals Ltd has been suspended by the Cyprus Securities and Exchange Commission until the 24th of December 2016. Please click here

FXFINPRO CAPITAL: Market Maker and STP- broker, what is the difference between them and who is more reliable?


"Your well-being depends on your own decisions." John D. Rockefeller"

Today, people often think about all the companies that operate on the model of market makers and brokers STP-"Who will really help me to earn? Can I become richer with them?, Who is a reliable partner?" What is the difference between them? We will try to understand all matters. Formerly people called the exchange like place or building where traders and intermediaries, stockbrokers for transactions in the securities or commodities were going at a certain time. Before the era of computerization on transactions parties agreed orally. Now trading is in electronic form using specialized programs that provide a variety of brokers. Let's try to understand the concepts of market makers and STP broker. 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.[ In the United States, the New York Stock Exchange (NYSE) and American Stock Exchange (AMEX), among others, have Designated Market Makers, formerly known as "specialists", who act as the official market maker for a given security. Transactions carried out by telephone or via the Internet and takes seconds. On the stock exchange Market Maker may be a brokerage firm, which according to the agreement with the stock exchange, is obliged to keep within a certain time (say, less than 90% of trading time) at the same time exposed applications with the difference between bid prices on buying and selling no more than a specified value. Through this exchange market maker provides certain benefits, such as payment of commission. STP (Straight Through Processing). enables the entire trade process for capital markets and payment transactions to be conducted electronically without the need for re-keying or manual intervention, subject to legal and regulatory restrictions. STP-brokers send orders directly from clients to the liquidity providers- international banks. STP-brokers may have either a single supplier or several. The greater the number of banks involved in the process, and accordingly, more liquidity, the better for the customers. The main essence of STP-platform is in access to the real market traders and market prices, plus the ability of immediate execution of orders without the dealer. Now that we understand the meaning companies, we will try to carry out a comparative analysis of "Market Maker" and «STP-broker":

«Market Maker»

STP- broker

Fixed Spread

Varying spread

Direct execution

Possibility of slippage

Stop lots Hunting

No conflict of interests

Imposing risks (high leverage)

Fair pricing

The imposition of risks (high leverage)

Broker earns together with the trader

As can be seen, a market maker has a significant advantage in that it can provide traders fixed spreads and direct execution of the order, which is very important. However, the main source of income of these companies are the financial losses of customers, which often entails the non-payment of winnings.

Company FXFINPRO CAPITAL is STP-broker and is regulated, consequently, the main interest of the company is successful stable earnings of our clients. Thus, the company FXFINPRO CAPITAL make closer their customers to the transparent and fair trading. In our work we use a model, which eliminates the conflicts of interest between companies and broker-trader. Thus, we are always on the side of clients, helping maximize profits while trading without dealing. We do not manipulate prices, which means you can lead your trading activities without unnecessary fears and prejudices. We are changing your representation of the Forex market and speak openly that we earn is not on your losses, but on bank charges. Want to note that FXFINPRO CAPITAL, being a socially company is always thinking one step ahead about the latest technologies that help traders become more successful. We provide all the necessary information for learning and professional growth.

FXFINPRO CAPITAL grows and evolves with you.

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We would like to remind you that although trading of derivatives on margin may offer many benefits, it is important to note that it also carries a high level of risk. Please click here to read our full ‘Risk Disclosure’ and ‘Risk Disclosures for Financial Instruments & Investment Services’.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.
The CIF license of PFX Financial Professionals Ltd has been suspended by the Cyprus Securities and Exchange Commission until the 24th of December 2016. Please click here