When dealing with forex brokers, while they all facilitate electronic currency exchange, their approaches to providing this service can be significantly different. They can mainly be classified as market makers, ECN, or a combination of both.
In the expansive and diverse ecosystem of forex trading, brokers can be likened to a variety of fish species. Some are akin to solitary predators, known as market makers, waiting for the right moment to seize potential trades. Others, like ECN brokers, move in schools, gathering and exchanging liquidity as a community. And then there are the hybrids, embodying a fusion of both strategies, adapting to the environment for their survival. Each type of broker brings a distinct approach to the table.
