Market maker
Updated 2026-09-20
Definition
A broker that acts as counterparty to clients' trades and sets its own prices.
Why it matters
It has a potential conflict of interest (if the client loses, the broker gains), mitigated by regulation. Execution quality and regulatory oversight are the key selection criteria.
Practical example
Many retail brokers are market makers on the main pairs and route large orders to the market.
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Educational content, not financial advice. Trading involves risk.