Marketplace vs. Market Maker

K

keegan99k9

New Member
#1
#1
Can you please explain me the difference between marketplace and market maker. In fact, I see that there are small number of marketplace, i.e HSI, LavaFX, Dukascopy - SWFX Swiss FX Marketplace, Currenex, EBS and that there are a big number of market maker.
What is the best to trade on?

Many thanks for your help.
 
H

harmads

Member
#2
#2
Hi
Using analogy of stock market, Market Place is like an exchange, which are many all over the world. Individual traders like you and me cannot go and trade there. One can only trade thru registered organizations like brokers.

Market Makers are organization like CMC, who are registered and have links with Market Places all over the world and we trade thru them.

Hope it helps.
 
D

davis9786

New Member
#3
#3
A market place source different price feeds from major banks and provide it through their channel to their clients who may be amongst others market makers.

Market makers in the sense that I think you mean it are also called "liquidity providers", in other words they source clients to do trades which may or may not go through a market place like you mention.

Technically anyone who is making buy and sell prices is a market maker. I recommend the e-Book Forex Trading Machine by Avi Frister. You may find out further detail at www.forexboost.com Its a must be book for beginners.
Best of luck.
 
L

linuxtroll

New Member
#4
#4
keegan99k9 said:
Can you please explain me the difference between marketplace and market maker. In fact, I see that there are small number of marketplace, i.e HSI, LavaFX, Dukascopy - SWFX Swiss FX Marketplace, Currenex, EBS and that there are a big number of market maker.
What is the best to trade on?

Many thanks for your help.
Click to expand...
Never trade with Market Makers (only good for a small live account for learning)... Go with ECN...
 
F

fxgood

Well-Known Member
#8
#8
jessica_30 said:
What are the advantages if we trade in a marketplace compare to market maker.
Click to expand...
Market place typically called with name ECN-STP you can get deeper liquidity, no conflict of interested between you and broker when you are consistently winning money were as with market makers story is just opposite, they are your counter party to all of your transactions, you win they loose and you loose they win
 
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