ECN BrokersTrading with an ECN broker has a number of advantages and if you’re in search of a well-established investment company then we have prepared this table of the most trusted brands. Our rankings are based on the actual tests that were done by our financial experts.
Official ECN Regulated Brokers You Can Trade With
|Broker||Min ECN account size||Max leverage||Spreads||Speed of execution score||Editors comment||Official site|
|$200||1:500||0 pips||98||Currently has the best speed among forex brokers offering ECN accounts.|
|$10,000||1:500||0 pips||92||Supreme forex liquidity with very competitive spreads and no re-quotes.|
ECN stands for “Electronic Communication Network”. A forex broker that uses this kind of system provides direct access to other participants in the market such as brokerages, hedge funds, banks and other individual traders. Their price quotations are consolidated from these market participants and because the brokerages only act as the middleman, they cannot trade against their customers.
So how do ECN brokers earn?
While the spreads are close to zero for the major currency pairs every so often, brokerages earn from commissions. This means that they want you to make a profit as they also make profits from the fixed commissions that they charge per transaction and the more that you transact, the more they get paid.
Benefits of trading with an ECN broker
You will be able to enjoy tighter spreads since you’re dealing directly with a large number of liquidity providers.
With this kind of environment you can take advantage of the best executable prices. No more re-quotes or slippages thanks to immediate order executions.
Compared to the traditional broker model, the ECN environment eliminates conflict of interest since it involves non-dealing desk execution.
Various Trading Modalities Accepted
You may apply scalping, EA assistants, automated trading and other modalities as price volatility may be boosted.
Why choose this account type?
A significant portion of the trading population has chosen this type of service due to its more promising benefits. And while it may require a little investment of your time to feel the full power of trading with this kind of technology, majority of those who have taken the ECN route claim that it is worth it. It is also important for you to be aware that this is a form of trading that involves substantial risk of loss and may not suitable for all investors. It is best to try your hand with a well-established online brokerage that offers an ECN account to fully experience the benefits and make an honest assessment if it works well with your trading needs.