In this short guide we will focus on a key question that many traders often ask themselves: Is eToro a Market Maker broker?
For the answer to this question and much more information on the execution style of eToro and how it can work for you, keep reading below and we will provide all the information you need.
Is eToro a Market Maker broker?
eToro is a hybrid Market Maker broker, and Straight Through Processing (STP) broker. This means they execute some trades as a market maker, and some using STP execution depending on the assets and how they want to manage the trades.
On CFD positions, it is most likely that eToro will act as a market maker due to the nature of the assets. Meanwhile, trading real assets which are also offered by eToro, it is more likely they will act as an STP broker.
The best way that you can get to know more about this order execution management and how it works for you is to open an eToro demo account to gain some realistic experience in a risk-free way.
Open eToro Demo Account
(79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money)
eToro Market Maker and STP execution: How does it work?
Taking a deeper look at how these two execution methods work at eToro we need to take a look at the official eToro (EU) Terms and Conditions.
According to these T&Cs, eToro interchanges its execution methods so that you, the customer, can achieve the best possible financial result whether that be in terms of costs, or raw execution capability.
In fact, in every case, eToro must act in the best interest of the trader when acting as a market maker broker too. This cannot cause any conflict of interest which may be harmful to you as a trader. With that said, market makers operate their own internal market, and act as a dealing desk which means they will be the counterpart to your trade.
In an STP role though, brokers have no dealing desk and so, you will have direct access to the market through this method which can lead to improved pricing and more efficient execution in many situations.
At eToro, the broker will aggregate similar orders to form one large order before transferring it to one of their top-tier liquidity providers. The size of the broker and volume of trades they process makes this possible in a very short space of time.
eToro Account Execution Methods
You will find only one account type available at eToro and therefore, the execution method that is employed solely depends on the trades you make and how eToro decides they want to execute them.
Again, a very effective way to get a clear picture of how this works is to open a free demo account and try out the broker for yourself.
Account Vs Account |
ACCOUNT |
CFD Assets |
Market Maker / STP |
Real Cryptocurrencies |
Market Maker / STP |
Real Stocks |
Market Maker / STP |
Spread Forex |
from 1 pip |
Demo |
Yes |
Minimum Deposit |
$200 |
Pros and cons of the eToro execution method