Platform also: order execution model, broker execution type

Execution model

The mechanism by which a broker processes customer orders — either acting as the counterparty (market maker) or routing orders to external liquidity providers (STP or ECN).

The three main models

Market maker (B-book): The broker takes the opposite side of every trade. Creates a conflict of interest but typically offers fixed spreads.

STP (Straight-Through Processing): Orders are passed to external liquidity providers without a dealing desk. Variable spreads, usually tighter than market maker.

ECN (Electronic Communications Network): Orders are matched directly against other market participants. True raw spreads, transparent commission per lot. Best for scalping EAs.

For EA deployment

Market-maker brokers may restrict scalping EAs or impose minimum order durations. ECN/STP brokers are generally EA-friendly. Always verify the broker EA policy before depositing.

Related terms

See also