How ECN versus market maker works
These are two execution models. An ECN, or electronic communication network, routes your order to a pool of liquidity providers who compete to fill it, so you trade against the real market. A market maker takes the other side of your trade itself, quoting its own bid and ask. The difference shapes your spreads, your fills, and where the broker’s incentives sit.
Worked example
On an ECN, your buy order is matched against the best available price from competing banks, giving raw, often very tight spreads plus a commission. With a market maker, the broker quotes you a slightly wider spread with no separate commission and may hedge or internalise the trade. In fast markets, the ECN model tends to show slippage rather than requotes.
What it means for you
Neither model is automatically better; what matters is tight pricing, fast fills, and no conflict on your trades. Volity aggregates liquidity from multiple providers so pricing on majors stays competitive and fills are reliable. The practical questions are always the same: how tight is the spread, how fast is the fill, and is execution transparent.
Why it matters
The execution model decides your real cost and whether the broker profits when you lose, so understanding it helps you judge pricing and conflicts rather than just trusting a marketing label. Focus on spread, speed, and transparency. Related: liquidity provider and bid-ask spread.
Learn more in our forex trading guide.
