ECN Forex Brokers
МТ4 iPhone, МТ4 Android , МТ4 Windows Mobile, WebTrader, MetaTrader 4 (MT4), MetaTrader 5 (MT5)Open account
Demo accounts (with a time limit), Standard Accounts, Swap free accounts, Micro accounts
ASIC (Australia) license №443670 IFSC (Belize) license №000261/158 CySEC (Cyprus) license №120/10Open account
MetaTrader 4, MetaTrader 5, Ctrader, R trader, WebtraderOpen account
Unlimited Demo Accounts, Standard Accounts, ECN accounts, STP accounts, Cent accounts, Swap free accounts, VIP accounts, Micro accounts, Segregated accounts
RoboForex Ltd has a special brokerage license IFSC Belize "Trading in financial and commodity-based derivative instruments and other securities" under the number 000138/210.Open account
MetaTrader 4, MetaTrader 5, Meta Trader 4 Mobile, MetaTrader 5 Mobile, MetaTrader 4 MultiTerminalOpen account
Unlimited Demo Accounts, Standard Accounts, ECN accounts, Cent accounts, VIP accounts
IFSC (Belize) license №IFSC/60/301/TS/17 NAFD (Russia) FSA (Saint Vincent and the Grenadines) license №20389 IBC 2012 AFD (Russia)Open account
MetaTrader 4, MetaTrader 5, Meta Trader 4 Mobile, MetaTrader 5 Mobile, MetaTrader 4 MultiTerminal, Web Tarder, TickTraderOpen account
Unlimited Demo Accounts, Standard Accounts, Cent accounts, Swap free accounts, Segregated accounts
BVI FSC, License Number SIBA/L/14/1082, FSC Saint Vincent, Reg. Number IBC22945, Saint Vincent, IBC24321Open account
MetaTrader 4, MetaTrader 5, MetaTrader 4 mobile, MetaTrader 5 mobile, WebTraderOpen account
Demo accounts (with a time limit), Standard Accounts, Swap free accounts, VIP accounts, Segregated accounts
FCA - 186171; CYSEC - № 259/14; CIMA - 1442313. DFCA - F000048; Saint Vincent and the Grenadines - 25228 (IBC 2018)Open account
МТ4 iPhone, МТ4 Android, МТ4 Windows Mobile, WebTrader, MetaTrader 4 (MT4), MetaTrader 5 (MT5), МТ5 iPhone, МТ5 Android, МТ5 Windows MobileOpen account
Unlimited Demo accounts, Standard accounts, ECN accounts, Cent accounts, Free swap accounts, Micro accounts
CySec - 185/12, FSCA - FSP: 46614, FCA - 600475Open account
MetaTrader 4, MetaTrader 5Open account
Demo accounts (with a time limit), Standard Accounts, ECN accounts, Cent accounts, Swap free accounts, Micro accounts, Segregated accounts
FSA - SD025, CBCS - 0003LSI, FSC - SIBA/L/20/1133, FSC - GB20025294, FSCA - 51024, CySEC - 178/12, FCA - 730729Open account
What is ECN?
ECN stands for Electronic Communication Network. It is a unique service provided by Forex brokers. ECN allows clients to interact and trade large volumes of currencies directly with one another in the inter-bank market.
Traders from all over the world post liquidity on ECN in major currency pairs (like GBP/USD, EUR/USD etc.), and the broker’s software. As a result, it connects the traders.
What Does an ECN Forex-Broker Mean?
An ECN Broker refers to a Forex Broker that offers its clients high liquidity, anonymity, and scalability on the major currency pairs (EUR, GBP USD etc.).
ECN Forex-brokers often offer their clients direct access to this pool of liquidity. Traders from around the globe can execute trades on this network.
In other words, ECN brokers offer direct access to the interbank market. Plus, they allow their clients to trade with the biggest banks in the world.
ECN accounts usually are available for both manual and automated trading on MetaTrader4 or MT4 (by far the most popular software among traders around the globe).
What is ECN Trading?
ECN trading means that you are executing trades on a network that provides access to the interbank market.
Your trades will be executed via multiple Forex brokers, who in turn connect to the biggest banks and liquidity providers from all over the world.
In other words, your orders are being processed by different ECN providers across geographies and multiple banks.
Why Choose an ECN Forex-Broker?
Firstly, let’s look at what are the main characteristics of an ECN broker:
- High levels of liquidity that is available to both retail and professional traders.
- Affordability (ECN brokers do not charge commission fees).
- Accessibility and scalability (you can open an ECN account with a small deposit).
Top 3 Benefits of ECN Forex Trading
1. High Leverage for Bigger Profits
When you open an account with an ECN Forex broker, you can access the biggest banks concerning liquidity, anonymity and scalability.
As such, you get access to the best possible execution of orders. This is great news for all scalpers and day traders who want to start trading Forex with a small deposit.
Most ECN brokers offer leverage up to 1:1000, which means that you can trade with as little as $1,000 instead of having to open a minimum account size of $10,000!
2. A Wide Range of Currencies and Pairs
ECN Forex brokers offer their clients a wide range of currency pairs to trade with. Most ECN brokers provide access to the major currency pairs (GBP/USD, EUR/USD etc.).
They also offer access to exotic currency pairs on demand. This means that you can trade Forex with a wide range of currencies and pairs.
3. High-Speed Execution
Multiple banks execute your orders in the interbank market, providing access to the broadest possible range of liquidity providers. The speed of execution is high, fast (usually fully automated using MetaTrader4 or MT4 platforms).
How to Choose an ECN Forex-Broker?
One of the critical questions that arise when people think about opening an account with a new broker is:
- How do I know which one is better or worse?
- Which one would be best for me?
Generally, there are some things you need to look at when comparing and choosing an ECN Forex broker. They include:
This is a vital aspect of any Forex broker. Your money and trading account are at risk when you trade Forex. So it’s of utmost importance that your broker is regulated by an authorized and independent organization (like CySEC) to provide you with the highest level of protection against fraud and scams.
2. Deposit and Withdrawal Requirements
How much and how long will it take for you to deposit or withdraw money from your Forex trading account? What are all of the withdrawal options available to you?
How long will it take for your funds to reach your bank account or a deposit to reach your trading account? These are the key questions you need to find answers to and choose a suitable one for your needs.
3. Spreads and Fees
Make sure you compare all available ECN brokers to choose the one with the lowest spread and no trading fees!
As we mentioned before, ECN Forex-brokers offer leverage higher than 1:100, which lets you do more with your money while keeping risk under control. Many beginners make the mistake of not risking enough money, which is why starting with a small deposit can be a good idea.
5. Customer Support
Most brokers have multiple ways for you to contact them, like phone, email or Skype chat. Some even offer live trading support to reach a broker even during market hours to help you with your orders!
The best ECN Forex-Broker should have an effective and reliable customer support system.
6. Company Information
You should also check the company information of the broker you are considering to trade with.
Important things to check include The Licensed Company, Number and Date of their License, and any regulator has investigated them. Check all this on the official websites of each licensed Forex broker.
How Does ECN Broker Work?
When you create an ECN account at a Forex broker, you are required to deposit the currency of your trading account into your personal ‘trading’ account as opposed to your base ‘account’. Your broker will then immediately adjust your account currency to reflect the amount deposited.
ECN brokers buy and sell currencies based on demand from their clients. They essentially act as a go-between for Forex traders who place an order and banks or other institutions that wish to exchange one currency for another, as the USD and GBP.
Due to this brokerage role, ECN brokers generate revenue for every market transaction. Instead of generating revenue from the spreads, they do not charge a commission on the trades they make. Or price disparities between trade orders.
This means that when an individual Forex trader places an order through a live account with a broker, it is converted into a ‘market order’ and relayed on the network.
If there are sufficient orders on the ‘buy-side, the broker can immediately purchase the currency at a lower price and sell it to their client at a higher price. The broker earns a profit from this spread, which is included in your base account balance once your trade has been executed.
Types of ECN Forex-Brokers
There are four types of ECN brokers to choose from:
1 .Non-Dealing Desk (NDD) Brokers
These Forex brokers work as intermediaries between clients’ orders and the market. They source the liquidity on behalf of their clients. The advantage with NDD brokers is that you can trade multiple currencies, have access to price alerts and indicators, market insights, etc.
2. Dealing desk Forex brokers
These Forex brokers do not source the liquidity themselves but rather take it from their clients and execute trades in their interest. The advantage with dealing desk brokers is that they offer scalping, which means a trader can earn profits when the Forex market is volatile.
3. Hybrid ECN Brokers
These brokers offer a combination of features that meet the needs of both NDD and dealing desk brokers. They are like NDD, except they have some dealing desk characteristics. For example, certain leverage is offered only to clients who can provide sufficient volume.
4. STP Forex Brokers
Straight Through Processing Forex brokers are those that allow clients to trade FX spot currencies anonymously. This is achieved with online and retail Forex trading platforms by eliminating the market exposure to every transaction made through an STP Forex broker or Straight-Through-Processing broker.
The type of Forex broker you choose will depend on your trading style, goals and Forex trading experience.
ECN Trading Instruments
There are many different Forex trading markets, and traders need to choose an ECN broker that provides them with a wide range of financial products.
The most popular Forex instruments to the trade include:
- Indices’ (such as Dow Jones & Nikkei);
10 Best ECN brokers of 2021
There are many ECN brokers available to choose from for your live account trading.
The best ECN Forex-Broker must be highly regulated. That’s because it means that it is trustworthy. Therefore, you won’t worry about your money’s safety or necessary compliance.
Here’s a list and description of the best ECN Forex-Brokers in 2021:
Alpari was founded in 1998. It operates legally as a UK company. Besides, it is an ECN Forex-broker that offers a wide range of trading instruments, including commodities (gold, silver, platinum), global equities and indices.
It offers trader accounts denominated in US Dollars, British Pounds and Swiss Francs. HighLow is a UK company that belongs to the IC Markets group, which was founded in 2010.
3. FP Markets
FP Markets offers online trading accounts denominated in US Dollars. FP Markets is a UK company that operates as an ECN broker and provides access to financial markets via the NDD (Non-Dealing Desk) Forex broker framework.
4. CMC Markets
It started operations in 1997 and is authorized and regulated by the Financial Services Authority, the UK’s leading regulatory body. CMC Markets is an NDD Forex broker that offers access to up to 70 currency pairs.
An NDD Forex broker that offers access to over 50 currency pairs, CFD trading, and stocks. FXTM has branch offices in Singapore, London and Paris.
Founded in 2009 and is an NDD Forex broker that provides access to over 50 currency pairs.
Offers access to CFD trading across 11 asset classes, including Forex and commodities via their proprietary social investment platform.
An ECN Forex broker that offers access to online trading accounts with over 50 currency pairs. This NDD broker operates legally as a Cyprus Investment Firm.
IAMFx FX broker features interbank spreads on all orders, deep liquidity, tight spreads on major currency pairs, 2MB market depth on EUR/USD and its ECN services are accessible from MT4.
A US Forex broker that also belongs to the IC Markets group. Three regulatory bodies regulate it: The Cyprus Securities & Exchange Commission, FCA in the UK, and CySEC in Cyprus, its headquarters.
Pros of ECN Brokers
- Incredibly flexible trading: it does not matter how much or what currency you want to trade. ECN Forex-brokers allow you to do it.
- Lower margin requirements: You can trade with a smaller margin compared to other types of brokers.
- Intricate order types – ECN brokers offer many order types that can cater to almost any trader’s needs. These include trailing stops, stop-loss orders, and other advanced features usually not available with dealing desk brokers.
- Forex transactions are generally carried out in minimum increments of 0.01 lot. That translates to just $1 for every pip movement.
- High liquidity – The bid-ask spread is very tight as forex brokers do not “own” the underlying assets, unlike binary options, for example. Therefore, they can trade a lot more efficiently and with larger volumes. That means that their liquidity levels can be unmatched.
- Higher leverage – ECN brokers are famous because of their high leverage on major currency pairs. That means that you can take advantage of the price fluctuations on these pairs with just a few dollars in your account balance.
Cons of ECN Brokers
- Higher spreads and commissions
- Lack of customer service support in some cases
- Higher account deposits from $10,000 up to $50,000
ECN Forex-Brokers offer a quick and transparent trading platform for their customers. While they exist in large numbers and types, finding one that suits your needs is crucial.
You’ll need to consider certain factors like regulation/licensing, deposit and withdrawal requirements, and much more. Be very careful with a broker demands a deposit of less than $10,000.