Market maker versus agency: what's your experience of the difference?
Market-making brokers provide their own prices; agency brokers route orders outward. The practical differences — spreads, requotes, conflict of interest — are what traders feel.
Share:
- the brokers of each type you've used
- the differences you actually noticed
- which model suits your trading
The bid, ask and slippage guide sets out the models.
Background: Bid, ask and slippage: why your order fills at a different price
Why buy trades open at one price and close at another, why a stop can trigger when the chart never touched it, and how slippage happens.
Why did my stop-loss trigger when the price on the chart didn't reach it?
Charts usually show the bid price, but a sell position's stop is triggered by the ask. If the spread widened, the ask could have touched your stop while the bid line stayed away from it.
What is slippage?
The difference between the price you expected and the price your order was filled at. It is most common in fast or thin markets, such as around news releases.
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