Generally, very generally, speaking…STP/ECN brokers pass your order straight through and charge you, the trader, a commission for doing so. These brokers do not care if you win or lose, they are more interested in your volume. It is the LP winning/losing on your trade. EVERY OFFSHORE BROKER I USE OPERATES THIS WAY
On the other hand, market maker brokers essentially create their own market. They do not charge a commission and pretend that is a good thing. What they do is mark up the spread (way more expensive than commission with a raw spread) THIS IS ALL BROKERS UNDER CFTC, with the exception of forex dot com DMA account and Interactive Brokers. In addition to the spread markup,**They are the LP and have a vested interest in whether you win or lose. You win, comes from their pocket, you lose, goes in their pocket.They literally hold the other side of your trade. It is like placing a bet with a bookie or a casino and they have the software to manipulate the outcome. See how regulation benefits the trader?
This would fall under my previous statements of “conditions are much better offshore”. This specific reason we are discussing can simply be added to all of the other reasons under that category.