ECN or Electronic Communication Network is a technology bridge that built with a purpose to links retail Forex market participants or traders to liquidity providers.
So eventually ECN is a non dealing desk bridge with straight through processing execution that enables execution in a direct connection between the parties.
- What is ECN
- ECN forex brokers
- ECN fee
- ECN vs Standard Account
- true ECN
- best ECN Broker
What are ECN Brokers?
So ECN Brokers automatically match requested orders to sell and buy at the best available price from several market participants, while at some time EUR USD spread maybe even 0 pip.
In simple words, the Brokers ECN Forex broker bridging technology furnishes a sophisticated FIX Protocol that brings the speed of light performance and high internal liquidity.
Apart from the competitive trading costs and due to its functions ECN technology also results in extended trading time too, along with high efficiency for automated trading and a variety of strategies suitable for both retail or institutional traders.
What is ECN fee?
What is the difference between ECN and Standard Account?
The main difference is on the execution method between Standard and ECN accounts, as well as the fee policy or the trading costs you would have.
Unlike Forex market maker brokers offering Standard Account that typically charge fixed spread for Forex trading added above the quotes, the ECN offering commission fee model.
Means, there is no commission charge for Standard accounts and market maker model typically, but a spread only basis while ECN costs split between the interbank spread from 0 pip and commission charge per lot.
- However, depending on the strategy you deploy ECN spreads from 0 pips does not necessarily mean lower trading costs, as for particular strategies fixed or variable spread as a trading fee is a much better option. Also, the Standard account and market maker execution model might be a good option for beginning traders, for some strategies and regular size traders.
- Therefore, you shouldn’t choose only ECN accounts or brokers, just because its good or popular. But rather check on details about trading conditions and choose the suitable execution performance according to your personal trading style or need. ECN Brokers and technology indeed more suitable for experienced traders, professionals or those that operate bigger sizes.
What is a true ECN?
With its popularity and a trend of ECN trading, there are many brokers around stating its Brokers ECN Forex status.
However, the only way the broker does not fake its trading conditions or statements, therefore provides true ECN is the company with the confirmed regulatory status along with its strong legit obligations.
Which is the best ECN Broker?
The best Forex ECN broker is a crucial choice for you as a trader, however, the best may mean different things for a particular trader or another.
With our thought, the Best ECN Broker is a heavily regulated broker, as it is a trustable one in which you would not worry about necessary compliance and safety measures towards your money.
- Only Regulated Brokers were checked for adequacy before launch, reporting on a daily basis for its fair trading practices and keeping trader’s money under safety measures. Unlike unregulated brokers that are never supervised, operating trading in any possible manner and easily faking any information or even trading platform execution.