ECN Forex Brokers

ECN or Electronic Communications Network is a technology built bridge that links retail market participants or traders to liquidity providers and enables execution in a direct connection between the parties. The ECN Broker automatically matches requested orders to sell and buy at the best available price from several market participants. In simple words, the ECN bridging technology furnishes a sophisticated FIX Protocol that brings the speed of light performance and high internal liquidity.

ECN forex brokers are species of investment and online trading offering companies. Their distinction from regular forex brokers is figured out in cooperation with institutional liquidity providers to let retail customers the direct access to them; such brokerages provide a possibility of trading currencies without the participation of a dealing centre.

The Brokers that provide an ECN connection usually offer an interbank spread from 0.0 pips and do charge a fixed commission per lot. Hence, this type of execution cannot cause any misunderstanding between the trader and the broker and indeed brings transparent trading conditions. Apart from the competitive trading costs, due to its functions ECN technology results in extended trading time too, along to high efficiency for automated trading and a variety of strategies for both retail or institutional traders.

  • The best ECN Forex broker is a crucial choice for you as a trader, while the only way the broker does not fake its trading conditions is the company regulatory status. 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 execution.

What is an ECN Broker?

Recent years have seen many new Forex brokers open their doors as ECN brokers. ECN stands for “electronic communications network” and sometimes brokers of this type are also referred to as “STP brokers” (STP stands for “straight through processing”) or “no dealing desk” (NDD) brokers. All these terms mean approximately the same thing: clients’ trades are executed by matching them with other clients or 3rd party counter parties who wish to take the other sides of the trades. Non-ECN brokers, in contrast, take the other side of the trade themselves, creating a large and obvious conflict of interest with their clients. They are typically referred to as “dealing desk brokers” or “market makers”