What are ECN Brokers Forex?
ECN Brokers are Brokers who automatically match trading orders to sell or buy via ECN or Electronic Communication Network which is a technology bridge that links retail Forex market participants or traders to liquidity providers.
So ECN is a non-dealing desk bridge with straight-through processing execution that enables execution in a direct connection between the parties via automated network.
ECN brokers usually match order at the best available price from available market participants or liquidity providers, while at some time EUR USD spread maybe even 0 pips.
- Apart from the competitive trading costs and due to its functions ECN technology results in extended trading time, along with high efficiency for automated trading and a variety of strategies suitable for both retail or institutional traders.
- ECN execution does not cause any misunderstanding between the trader and the broker due to interbank connectivity with transparent trading conditions.
- Depending on the strategy ECN spreads from 0 pips does not necessarily mean lower trading costs at times it is even higher than non ECN Brokers offer, as for particular strategies fixed or variable spread as a trading fee is a much better option.
- ECN Brokers and technology indeed more suitable for experienced traders, professionals or those that operate bigger sizes. While the Standard account and market maker execution model might be a good option for beginning traders (Also check Best Forex Brokers for Beginners), for some strategies and regular size traders.
|Low spread from 0 pips
Best ECN Forex Brokers
Here are the selection of Best ECN Brokers by category that are Regulated Forex Brokers with some of the best ECN trading conditions, trustable standards of operation and transparent conditions.
- BDSwiss – Best Overall Forex Broker 2022
- BlackBull Markets – Lowest Spread Forex Broker 2022
- FP Markets – Best Forex Broker for Beginners 2022
- Pepperstone – Best MT5 Forex Broker 2022
- HFM – Best MT4 Forex Broker 2022
What is ECN fee?
What is a true ECN?
With its popularity and a trend of ECN trading there are many brokers stating its Brokers ECN Forex status.
However, the only true ECN Brokers are brokers with the confirmed regulatory status and
strong legit obligations.
ECN vs Standard Account
Standard Account and ECN account fee structure is the main difference, Standard Accounts is no commission
account with fixed or variable spread basis. While the ECN works with commission fee model, s ECN
costs split between the interbank spread from 0 pip and commission charge per lot.
ECN Forex Brokers who accept US Clients
Traders from the United States are able to trade only with Forex brokers registered with CFTC or NFA in US.
Some regulated ECN brokers for US are Forex.com, IG and ATC Brokers.