ECN Forex Brokers
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 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.
Besides, ECN execution cannot cause any misunderstanding between the trader and the broker as its interbank connectivity brings transparent trading conditions.
What is ECN fee?
The trading Brokers that provide an ECN Account and connection usually offer an interbank spread from 0.0 pips and do charge a fixed commission per lot as a trading cost or 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, 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 platforms execution.
- Like the Regulated Brokers you will find in the listing below offers some of the best ECN trading conditions along with applicable standards of operation, transparent conditions and privacy policy. So you may check out these reviews and see what is the most suitable one for you along with general offering, trading conditions, proposals according to your residency, etc.
| Broker | Detail | |
|---|---|---|
 Alpari | Min. Deposit: 20 US$ Max. Leverage: 1:500 Trading Platforms: MT4, MT5 Regulation: SVG FSC, IFSC | 1 |
 FXTM | Min. Deposit: US$200 Max. Leverage: 1:30 | 1:200 Trading Platforms: MT4, MT5 Regulation: CySEC,FCA, FSCA | 2 |
 FP Markets | Min. Deposit: 100 US$ Max. Leverage: 1:500 Trading Platforms: IRESS, MT4, MT5 Regulation: ASIC, CySEC | 3 |
 XM | Min. Deposit: US$5 Max. Leverage: 1:30 to 1:888 *Depends on the entity of the group Trading Platforms: MT4, MT5, XM WebTrader Regulation: CySEC, ASIC, IFSC | 4 |
 GO Markets | Min. Deposit: 200 US$ Max. Leverage: 1:500 Trading Platforms: MT4, MT5, WebTrader Regulation: ASIC | 5 |
 Exness | Min. Deposit: 1 US$ Max. Leverage: 1:30 | 1:1000 Trading Platforms: MT4, MT5 Regulation: CySEC | Exness Review |
 AvaTrade | Min. Deposit: 100 US$ Max. Leverage: 1:30 | 1:400 Trading Platforms: MT4, AvatradeGo Regulation: Bank of Ireland, ASIC, JFSA, FSCA | AvaTrade Review |
 eToro | Min. Deposit: US$200 Max. Leverage: 1:30 Trading Platforms: eToro Platform Regulation: CySEC,FCA, ASIC | eToro Review |
 BlackBull Markets | Min. Deposit: 200 US$ Max. Leverage: 1:200 Trading Platforms: MT4, MT5 Regulation: FMA | BlackBull Markets Review |
 Scandinavian Capital Markets | Min. Deposit: 10,000 US$ Max. Leverage: 1:30 | 1:100 Trading Platforms: Currenex, cTrader, MT4 Regulation: Swedish FSA | Scandinavian Capital Markets Review |