---
title: STP vs ECN vs Market Maker: Broker Models Explained
description: STP, ECN and market maker broker models compared: how each executes orders, how each earns revenue, risk, technology needed and why most brokers run a…
url: https://www.brokerwhitelabelsolution.com/blog-stp-vs-ecn-vs-market-maker
language: en
publisher: Broker White Label Solutions
---

# STP vs ECN vs Market Maker: Which Execution Model Should Your Brokerage Use?

By Broker White Label Solutions Team · Published 20 October 2026 · 8 min read

**Quick answer**

An STP (straight-through processing) broker passes client orders to liquidity providers and earns from markups or commissions. An ECN-style broker gives clients access to a pool of competing prices, usually with raw spreads plus a commission. A market maker takes the other side of client trades and manages the resulting risk in-house. Most brokers today run a hybrid model, routing some flow to liquidity providers and internalising the rest, within the limits of their licence.

**Key takeaways**

- STP brokers pass orders to liquidity providers and earn markups or commissions.
- ECN-style brokers show competing prices with raw spreads plus a commission.
- Market makers take the other side of client trades and carry the market risk.
- Most brokers run a hybrid model, routing flow by client, size and behaviour.
- Your licence may restrict which models you can run and what you must disclose.

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The execution model decides how your brokerage earns money, how much risk it carries and which technology it needs.

## The three models compared

|  | STP | ECN-style | Market maker |
| --- | --- | --- | --- |
| **Order handling** | Passed to liquidity providers | Matched against a pool of competing prices | Broker takes the other side |
| **Main revenue** | Markup and/or commission | Commission per lot | Spread and client trading results |
| **Market risk** | Low | Low | High; needs active risk management |
| **Key technology** | [Bridge](https://www.brokerwhitelabelsolution.com/liquidity-bridge) and LPs | Aggregation, depth of market | [Risk management](https://www.brokerwhitelabelsolution.com/risk-management) tools |

## Why most brokers run a hybrid model

A hybrid broker routes flow by rules: for example, larger or consistently profitable clients are hedged with liquidity providers, while other flow is kept in-house within strict exposure limits. This balances revenue and risk. See [A-book vs B-book vs hybrid](https://www.brokerwhitelabelsolution.com/blog-a-book-vs-b-book-vs-hybrid) and [toxic flow](https://www.brokerwhitelabelsolution.com/blog-broker-risk-management-a-book-b-book-toxic-flow).

## Technology you need for each

- **STP / ECN:** a liquidity bridge, one or more [prime of prime](https://www.brokerwhitelabelsolution.com/blog-what-is-prime-of-prime-liquidity) providers, aggregation and execution reports.
- **Market maker / hybrid:** real-time exposure monitoring, routing rules, alerts and [dynamic leverage](https://www.brokerwhitelabelsolution.com/dynamic-leverage).
- **All models:** an [MT5 white label](https://www.brokerwhitelabelsolution.com/mt5-white-label) or other platform, a [forex CRM](https://www.brokerwhitelabelsolution.com/crm) and reporting.

*General information only, not legal, financial or tax advice. Each client is responsible for its licences and the laws of every country where it operates.*

## Frequently asked questions

Both pass orders to the market. ECN-style accounts typically show raw spreads from competing liquidity sources plus a commission, while STP accounts often include the broker's markup in the spread.

Not necessarily. Market making is a legitimate model when properly licensed, disclosed and risk-managed, but it creates a conflict of interest that regulators expect brokers to manage.

A hybrid model, routing some client flow to liquidity providers and internalising the rest within risk limits.

A trading platform, a liquidity bridge, one or more liquidity providers and execution reporting.

## Related services

### Risk Management

[Explore service](https://www.brokerwhitelabelsolution.com/risk-management)

### MT4/MT5 Liquidity Bridge

[Explore service](https://www.brokerwhitelabelsolution.com/liquidity-bridge)

### Liquidity Solutions

[Explore service](https://www.brokerwhitelabelsolution.com/liquidity)

[Book a free consultation](https://www.brokerwhitelabelsolution.com/contact)[More articles](https://www.brokerwhitelabelsolution.com/blog)

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Source: https://www.brokerwhitelabelsolution.com/blog-stp-vs-ecn-vs-market-maker
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Broker White Label Solutions is a technology provider only. It does not provide brokerage, investment or payment services and does not hold client funds. General information, not legal, financial or tax advice.