Market maker

A market maker (or “dealing desk”) broker quotes its own buy and sell prices and often takes the other side of your trades internally, rather than passing them to an outside market. Spreads can be wider or fixed, and the broker manages its own risk.

Market makers aren’t inherently bad — many are well-regulated and convenient for beginners — but the model can mean requotes or off quotes on fast trades. Cost-focused and active traders often prefer an ECN broker.

Whichever model, choose a well-regulated broker and confirm how it executes orders.