FBS market maker

No, FBS is not a market maker, it does not have its own dealing desk. As a client of FBS, your orders will be routed directly to liquidity providers/the market.

Data updated on June 17, 2024

My key findings in a nutshell

My key findings in a nutshell

Krisztián Gátonyi

Forex • Market Analysis • Algo Trading

I have more than 15 years of experience as a forex trader, actively trading on a daily basis with many currency pairs. I put great emphasis on risk management and self-discipline: I keep a trading journal to help me stick to my strategy, and I have sharpened my keen sense of broker safety by testing more than 50 forex brokers.

Learn about our methodology

Krisztián Gátonyi

Forex • Market Analysis • Algo Trading

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

• FBS is not a market maker, it does not operate its own dealing desk.
• If you have an account at FBS, your trades will be routed to liquidity providers or directly to the market.
• Non-dealing desk brokers typically quote lower spreads but may charge a commission.
• The most typical order execution types used by non-dealing desk FX brokers are ECN and STP.

If you are looking for the best non-dealing desk brokers that offer ECN accounts, 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.

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.

Data updated on June 17, 2024

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 FBS 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 FBS 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 FBS?

FBS is a non-dealing desk broker. If you are a client of FBS and want to direct your trade to a particular exchange, market maker, or ECN, you may be able to contact your broker and ask them to do this. Note that some brokers may charge for that service. Several non-dealing desk brokers offer active traders the ability to direct orders to the market maker or ECN of their choice.