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ECN (Electronic Communication Network) brokers provide direct access to liquidity providers, allowing traders to interact with other market participants without dealing desk intervention, often resulting in tighter spreads but charging commissions. STP (Straight Through Processing) brokers send client orders directly to liquidity providers without manual interference, earning through slightly marked-up spreads instead of commissions. Market makers, on the other hand, create their own market by taking the opposite side of a client's trade, meaning they profit from spreads and, in some cases, client losses, which can create a potential conflict of interest.

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Jacob

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7mo ago

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