Under the ECN/STP model, the money is still on the side of liquidity providers, whether these providers are coming from the inside network or connected externally. Brokers generate income from the commissions, or fees that are charged on each client transaction. Consequently, the ECN/STP model imposes potential requirements on the company, which must be met in order to comply with the status of a progressive broker. 4) it is legal to trade forex with Indian exchanges only Novel Investor. "Seth Klarman on Buffett's 'Never Lose Money' Rule." These are not the lowest spreads offered in the industry, and 7bForex also offers commissions on both the Standard and Elite Accounts, making it an uncompetitive broker in terms of its pricing. The ECN model is referred to as the most conflict-free and advanced in the Forex market. And while few would argue with that, many companies still adhere to the market maker model. Without accusing or pointing fingers, we will again define what is the ECN model, and analyze through our experience, why the transition to the electronic communication network model is not that easy, and why most brokerage businesses out there may actually benefit by applying the ECN/STP concept to their platform.