Fusion Markets

Generally, we consider terms like ECN/STP to be industry buzzwords that don't align with what the client is asking for. In Australia for example, all brokers are required to have a market maker authorisation on its licence in order to service clients. This is due to the legal nature of a CFD contract, as regardless of whether the broker hedges your trade with a liquidity provider, you have a direct contract with the broker that we will exchange cash (whether that be positive or negative) when you close out a trade. 

We consider a 'market-making broker' to be someone who operates a dealing desk and creates their own prices (all banks and liquidity providers are technically market makers - they create their own prices), which can be based on their own proprietary trading positions or risk exposure. We don’t currently operate in this manner, so although we have market-making authorisations on our AFS Licence (like every other Aussie broker), we don’t consider ourselves to be a market maker.

 

Fundamentally, we are a non-dealing desk broker who passes on pricing from our liquidity providers, plus our fees and charges. And to repeat the point, our AFSL licence like all AFS licences have market maker authorisations but we don't consider ourselves one. Further, we don't operate any server plugins or any other such tool that would adversely harm our clients. We just focus on providing the lowest possible costs.

We know a lot of brokers in Australia have been pulled up and fined by ASIC for claiming their accounts are "True ECN" etc. which is just a marketing buzz word to attract people.