Great question, thanks for asking.
We're 50% owned by an institutional FX broker, robot Securities who use the best hand-picked liquidity providers to which we have no control over the price and is streamed directly to you with zero spread mark-up. That's why we call the account the zero and why all of our spreads start from as low as 0.0 (most brokers apply mark-ups to their majors and cross rates).
Having now been servicing clients since June 2019, naturally, we hedge quite a bit of our trades with our providers, but we don't hedge every single position as certain sizes (such as 0.01) the fees exceed the gains from it and from time to time there is a natural hedge in that one client is buying 1 lot of EURUSD and 1 lot is sold (net 0).
In terms of benefiting when the client loses, I don't think that's the right way to look at it. If 1 client in the UK makes $1000 on EURUSD but the opposite trade makes $1000 in Bahrain, then the clients win. Fusion doesn't make any market gains from that transaction, we simply take the spread/commission.
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.
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. Ultimately, you want a broker with the lowest trading costs, fast execution and seamless trading - that's what we're here to do and to make your investment gains higher thanks to paying half what brokers charge you.
As always, let me know if you have any other questions or you'd like our CEO to reach out about this. There is a lot of noise out there (most of it is not accurate) so it's important for you to know how this works.