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eToro market maker as of August 2023

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Is eToro a market maker?

Yes, eToro is a market maker, it operates its own dealing desk. When you make a trade as eToro’s client, you are trading with eToro and your order is not routed to the market.
Key features of eToro services
💰 S&P 500 CFD spread 0.8
💰 EUR/USD spread 1.0
💰 Forex commission per lot No commission is charged
💰 Withdrawal fee $5
💰 Inactivity fee Yes
💸 Minimum deposit $10
🗺️ Deposit methods Bank transfer, Credit/debit cards, eToro Money, PayPal, Neteller, Skrill, Trustly, iDEAL, Przelewy 24, RapidTransfer, Klarna, Giropay
🎮 Demo account provided Yes
📋 Read more Check out the eToro review for 2023

Data updated on November 11, 2023

My key findings in a nutshell
Gyula Lencsés, CFA
Master of Broker Brilliance | Forex • Derivatives • Market Analysis

I've thoroughly tested eToro services with our analyst team by opening a real-money account and these are my most important findings:

  • eToro is a market maker, it quotes its own bid/ask prices.
  • eToro operates its own dealing desk.
  • As a client of eToro, you will trade directly with eToro, your orders won’t be routed to the market.
  • Market maker brokers typically quote wider spreads but do not charge commissions.

If you want to see how a market maker such as eToro compares to the best non-dealing desk brokers in terms of prices and services, search no further. Our analyst team compiled a top list of the best non-dealing desk brokers worldwide offering ECN routing by analyzing more than 500 data points for each broker and testing their services with a live account.

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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal
eToro is available in the United States

What is a market maker broker?

A market maker broker, also referred to as a dealing desk broker, plays a vital role in facilitating trading in financial markets, such as stock exchanges, foreign exchange (forex) markets, and cryptocurrency exchanges.

The primary function of a market maker broker is to provide liquidity to the market by creating a market for a particular financial instrument, thereby ensuring that there are always buyers and sellers available.

A market maker broker quotes its own bid price and ask price. The bid price is the price at which the broker is willing to buy the instrument, and the ask price is the price at which they are willing to sell it. The difference between the two prices, known as the spread, represents the market maker's profit margin for facilitating the trade.

The spread is essentially the cost traders pay to their broker for the convenience of executing trades.

Market makers provide continuous quotes for various financial instruments throughout trading hours. This means that they are always ready to buy or sell, regardless of whether there are active buyers or sellers from other traders.

When a trader wants to buy or sell a financial instrument, they can execute the trade directly with the market maker broker if they have a trading account at the broker. If the trader accepts the market maker's ask price, the trade is executed at that price. If the trader wants to sell, they can do so at the bid price offered by the market maker.

What is the difference between a market maker and a non-dealing desk broker?

The primary difference between a market maker and a non-dealing desk broker lies in their roles and functions within financial markets. Here are some crucial aspects of their activities.

Differences between dealing desk and non-dealing desk brokers
Dealing desk Non-dealing desk
Stands ready to buy and sell specific financial instruments at all times, creating a market for those instruments Has no specific obligation to provide liquidity like market makers
Operates its own dealing desk Does not operate its own dealing desk
Its clients trade with their own broker Routes buy and sell orders directly to the network of liquidity providers/interbank market
Applies its own fixed spreads Applies market spreads
Does not charge commission May charge commission
Costs typically less transparent Cost more transparent
Potential conflict of interest with own clients as the market maker might take the other side of client positions No potential conflict of interest as non-market makers do not trade against their clients

Data updated on November 11, 2023

Some non-dealing desk brokers offer Direct Market Access (DMA) trading, which is the practice of placing trades directly in the underlying market.

A DMA broker provides traders with direct access to the order books of various financial markets, allowing them to interact with those markets in real time. DMA enables traders to place orders directly into the market without the need for intermediaries.

DMA brokers are commonly used by institutional traders and advanced retail traders who seek to execute orders with maximum transparency and control. Traders with DMA access can view market depth, place orders directly in the order book, and potentially interact with other participants in the market.


Does eToro offer 'best execution' for my orders?

Most top-tier regulators, including the SEC in the US, ASIC in Australia and the FCA in the UK, require brokers to execute orders on terms most favourable to the client. In deciding how to execute orders, the entities of eToro overseen by a regulator that requires best execution, have a duty to seek the best execution that is reasonably available for customers' orders. That means the broker must evaluate the orders it receives from all customers in the aggregate and periodically assess which competing markets, market makers, or ECNs offer the most favorable terms of execution.

Can I direct my trades at eToro?

eToro is a market maker operating its own dealing desk. As a client of eToro, you will be trading directly with your broker by default. Some brokers operate a hybrid system in the sense that they allow clients to open accounts where the orders will be routed to the market.

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Further reading

Author of this article

Gyula Lencsés, CFA

Master of Broker Brilliance | Stock Market • Commodities • Market Analysis

With over a decade in finance, I lead content creation at BrokerChooser and personally evaluated some of our 100+ listed brokers. I open real-money accounts, execute transactions, and engage with customer services, offering firsthand assessments. Prior to BrokerChooser, I managed mutual funds in wealth management, trading stocks, ETFs, bonds, commodities, forex, and derivatives. My goal: simplify the hunt for top brokers in a dynamic investment landscape.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

Visit eToro eToro USA LLC; Investments are subject to market risk, including the possible loss of principal

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