⭐ Hybrid Market Makers with Interbank Raw ECN Spreads from 0.0 Pips

Is It Possible?

Yes. A Market Maker Forex Broker, who uses Hybrid dealing model (B-book order internalization + A-book external order hedge), can absolutely advertise "Interbank level raw ECN spreads from 0.0 Pips".

How Does It Work?

From the practical point:

Being a Hybrid Market Maker does not prevent raw pricing

A Market Maker can have connection to many Liquidity Providers (LPs), who will be streaming top-of-book raw price quotes to the Market Maker, who may then choose to pass them raw (or close-to-raw) to own Clients and still be a Counterparty to Clients' trades and internalize (B-book) some of the flow.

From the risk handling point:

The raw spreads do not affect the contractual factor of the Market Making

E.g. razor-sharp, tight spreads are just the pricing factor, while contractual risks of dealing with a Market Maker (conflict of interests) remains unchanged.

From the total cost point:

True spreads from 0.0 pips are almost always accompanied by commission to make profits for the Market Maker

If a Forex broker promotes spreads from 0.0 pips and $0 commission, this suggests that spreads rarely hit 0 pips, and instead are often hovering at higher levels during most of the trading session... (That is unless you found a rare charity broker, who allows free trading).

When converting all costs to pips, the picture often matched standard MM accounts. Fore example: Raw ECN spread from 0.0 pips on EURUSD + $6 commission round turn = 0.6 pips in trading cost.

From the legal perspective:

Acting as "Principal, Counterparty", "Sole Execution Venue", "May Hedge, Internalize"

- all point to a Hybrid Market Maker, where Raw 0.0 pips are still very much possible, and often seen nowadays, as the competition among Forex brokers grow higher.

And lastly, from the marketing point:

"Spreads from 0.0 pips" are not the same as "Usually 0.0 pips spreads"

which leaves a lot of room for price variation and debate.

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