MM Broker– Market maker model
Market Makers charge lower commissions and have lower capital requirements for new traders. Furthermore, market maker brokers are usually able to offer a much wider variety of assets compared to their DMA brokers.
However, conflict of interest issues might arise since essentially they are trading against the traders in order for them to make money. Market makers make the profit on the spread between ‘Bid’ and ‘Ask’ quotes.
The market makers hold the right to refuse your trades.