ECN, also known as Electronic Communication Network is a trading tool that connects traders to different liquidity providers such as brokerages, banks, or other traders. Using ECN, individual traders can gain access to financial markets with any type of trading accounts regardless of the balance size. The main reason why ECN brokers are popular is that they collect prices from several providers in order to offer you the best possible bid/spreads available on the market. Settling for one ECN Forex broker can be a hard task due to the unregulated nature of the Forex market. This is different from the stock and futures exchanges. The most popular forex ECN brokers have created a wide range of ECN trading account options and lower commissions for their clients. Electronic Communications Networks (ECN) presents an edge compared to Dealing Desks, who more than not, transact against some of their clients which is a bad example of conflict of interest.
It might not be an easy task to choose your favorite trading space where it is possible to explore ECN Forex Brokers. There are a lot of ECN forex trading platforms available on the internet – below, you can see the list of Forex brokers that offer high-quality services along with secure and reliable transactions.
5$
CySEC, FCA, ASIC
30$, 50%+20%
1:1000
2009
MT4, MT5, WebTrader
$100
CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA
1:400
2006
MT4, MT5, WebTrader, AvaTradeGO
USD 5,000
FINMA, FCA, ASIC, FSA, MAS, AFM
N/A
1:30
1992
SaxoTraderGo, SaxoTraderPro
$5
SVGFSA, FCA, DFSA, FSCA, FSA
From 30% to 100%
1:1000
2010
MT4, MT5
15
CySEC
30%
1:500
2015
MT4, WebTrader
$250
FSCA
1:200
2012
MT4, WebTrader
100$
FCA
N/A
30:1
2008
Custom
$10
Risk Warning: YOUR CAPITAL MIGHT BE AT RISK
N/A
1:1000
2013
Proprietary
10 USD
FCA, CySEC, FSA
N/A
1:Unlimited
2008
MT4, MT5, WebTerminal
$10
N/A
N/A
1:500
2019
MT4, custom
$10
1:500
MT4
250$
FCA, NFA
N/A
200:1
1999
MT4
$25
ASIC, CySEC, FSA, BVI
50%
1:400
2001
WebTrader, MT4, TradingView
100
FCA, CySEC, DIFC, CIMA
N/A
500:1
1977
MT4, MT5
$100 AUD
ASIC
N/A
500:1
2005
WebTrader, MT4, MT5, IRESS
AUD$200
ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA
N/A
1:400
2010
MT4, MT5, cTrader, TradingView
250 EUR
FSA (Seychelles)
None
1:200
2023
FXRoad web & mobile platforms
$50
N/A
N/A
1:500
2015
MT4
1 USD
ASIC, FCA
10 USD
1:500
2005
MT4, MT5, WebTrader
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Also known as the term ‘No-Dealing Desk’ brokers, they simply act as middlemen passing trades from their clients to the direct source of liquidity or in some cases matching trades with other participants using a broker’s ECN.
An ECN broker is an expert in forex financial matters and utilizes communications networks to give clients access to several financial markets. An ECN broker gathers buying and selling price lists from a wide range of participants and provides his/her clients with better options than they would get from another broker not utilizing ECNs (electronic communications networks).
This breed of brokers deals with online platforms to get a better reach on trading options for their clients and only ask for a commission. That’s what actually makes them attractive as with commission fees they have the ability to offer real value to their clients.
These are some of the characteristics that the board of ECN brokers has – These are also reasons why choosing them might be beneficial for you.
A lot of traders would obviously opt for this type of trading structure due to the fact that being the middle man, they do not inherit risk, rather they pass it on from one end to the other. To put it into a few words, ECN FX broker gets a commission whether your trade ends up successful or not, meaning that he/she will never bet against you as there is no reason to take the other side of your trading position.
Additionally, ECN brokers are unable to manipulate market prices simply due to the fact that they use prices from other providers themselves. As we already mentioned, ECN Forex brokers display different prices from official sources – this process is completely transparent and makes it easier to trade immediately, use lower spreads and take advantage of lower commission fees.
All in all, we think it is pretty clear that using ECN Forex comes with a lot of advantages. Considering the fact that ECN brokers use different kinds of liquidity providers, traders are able to get cheaper ECN fx trading conditions in one of the most transparent environments available on the trading market.
Start trading with the largest Forex broker – AvaTrade
ECN brokerages derive profits by effecting commission rates on trades done on behalf of clients. While the commission presents a cost, this kind of brokerage still tends to offer better value for money overall.
Due to the concept of commission in agreement, many ECN brokers prefer clients with sizable minimum deposits, pushing away potentially lucrative clients. Clients that do make the cut have the disadvantage of not being able to predict and set stop losses and can lose their investments in the wide spreads made available with the use of the broker’s networks.
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