Best ECN Brokers in the World.
In a nutshell, when it comes to the trading of foreign currencies, the focus is to make as much profit as you can, and as often as possible. In the forex market, there are two main varieties of brokers. Firstly, we have STP brokers; which stands for ‘straight-through processing’. This is the ‘middleman’ going back and forth between liquidity providers and you (the trader).
Secondly, you then have ECN brokers, which create a direct channel of contact between you (the trader), and the providers of trading assets (liquidity providers). What mainly sets an ECN broker apart from a traditional broker is the use of an ECN ‘system’.
Benefits of ECN Brokers.
In order to access the forex trading market, you will first need to find a suitable broker. This is because forex isn’t done in the same way as shares and other assets, nor is forex trading on the same regulated exchanges.
Depending on which broker you use, you can potentially gain access to many different trading positions and exchange rates. Selecting the right platform for the kind of trader you are is essential if you want to become a profitable forex trader, and this is where the best ECN brokers can help you.
Always start by making sure the ECN broker you have chosen, or are looking into, is fully licenced and regulated. You will find that a lot of brokers actually register with more than one regulator, sometimes several. As such, this does come with an extra layer of security on your funds.
As well as making sure your ECN broker is fully regulated, you should always double-check that it provides the right type of trading accounts and platforms for you. At the end of the day, this is a personal preference and is going to depend on your style of trading.
A few other things to consider are the accessibility of technical indicators, trading conditions, minimum deposit required, permitted payment methods, your preferred currency pairs, and of course – spreads.
ECN Disadvantages.
Realistically, like light and dark most good things come with negatives as well. With this in mind, we have to inform you of some of the disadvantages that can go hand in hand with opening an account with an ECN broker.
ECN brokers don’t take spreads as service payment, so they will have fixed fees and commission for each and every transaction. It really depends on how big those commissions are and what your trading budget is. In other words, ECN brokers are likely not suitable for small trading stakes, as your potential profits will get eaten away by a flat commission fee.
In order to open an account with an ECN broker, you will often find that platforms expect a higher deposit fee. This is down to the high service costs, and the fact that they allow you to communicate directly with liquidity providers.
As liquidity providers can also have such high requirements and service costs, market participants can sometimes hold a position size of 10,000 currency units (or a 0.1 lot) This means as a trader if you want to open a position for less than this figure, you will not be permitted to.
So now let’s get into the Best ECN Brokers,
1. Forex.com– Best All-Round ECN Broker.
Forex.com is a specialist currency broker that also offers other asset classes. This includes CFDs in the form of stocks, commodities, and indices. In what it calls GTX Direct, Forex.com offers a fully-fledged ECN trading arena.
This means that you will be accustomed to reasonably competitive fees, spreads, and commissions. With more than 90 forex pairs on offer, you will have access to a full selection of majors, minors, and exotics. Interestingly, the platform allows you to get started with a minimum deposit of just $50.
High-grade ECN trading platform. $50 minimum deposit More than 90 forex pairs supported Other ECN platforms in the market are more competitive with fees.
2. FXTM– Best ECN Broker for Zero Commissions.
FXTM is an online broker that is regulated by the FCA and CySEC. You will be able to trade everything from forex, commodities, spot metals, and stocks – all in the form of CFDs. Its ECN accounts require a minimum deposit of $500, and you will benefit from zero commissions and tight spreads. You will also have the option of using popular third-party platforms MT4 and MT5.
Zero commissions. Tight spreads Heaps of financial instruments supported $500 minimum deposit.
3. Pepperstone Markets– Best ECN Broker Advanced Trading Platform.
Pepperstone Markets is a hugely popular online trading platform that offers both STP and ECN accounts. You will have access to a full suite of trading platforms – including MT4, MT5, cTrader, and ZuluTrade.
This is ideal for those of you that require advanced chart reading and drawing tools, as well as the ability to deploy automated robots. It accepts several payment methods, such as a debit/credit card, Paypal, and bank transfer. Negative balance protection if offered, and you can engage in both scalping and hedging without concern.
Low fees and spreads. Multiple payment methods supported Choose from four different trading platforms Real-time news is a bit basic.
4. ThinkMarkets– Best ECN Broker For High Leverage.
Think Markets is an online broker that holds several regulatory licenses. This includes – including the FCA. Among several other account types, Think Markets also offers ECN accounts. This particular broker is popular with traders that want access to high leverage limits. This stands at a whopping 1:500 if you are a professional client.
Zero commissions. Tight spreads Heaps of financial instruments supported $500 minimum deposit.
5. RoboForex – ECN Accounts With 0 Spreads.
RoboForex is an online trading platform that offers ECN accounts. You can get started in minutes, and minimum deposits start at just $10. Best of all, you will not be accustomed to any spreads when trading via your ECN account. The platform is home to high levels of liquidity and fast execution speeds.
0 spreads. Minimum deposits just $10 Fast execution speeds Relatively unknown in the brokerage scene.