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ECN Brokerage: What is an ECN Broker?

ECN brokers use ECNs to connect their clients to other currency market participants. ECNs match orders from market participants electronically.
ECN brokers only charge a commission per trade.
This brokerage model differs from the “market maker” concept, where the broker takes the client’s trade.

Keynote:

ECN brokers provide a number of advantages to their clients, including the ability to trade on narrow spreads, the ability to trade with other market participants, and the ability to trade in a variety of currencies.
ECN brokers are typically utilized by more seasoned traders, as they necessitate a greater level of market knowledge and understanding.

ECN brokers can be an excellent choice for experienced traders, but they are not for everyone.

ECNs are distinct from traditional market makers in that they do not trade against their own consumers. This indicates that an ECN is able to provide greater price transparency and quicker execution speeds than a market maker.

Large institutional operators, such as banks and hedge funds, utilize ECNs frequently. They are also utilized by day traders and high-frequency traders who need to execute trades rapidly and efficiently.

3 Types of Brokers

1. (MM) Market makers, also known as dealing desk (DD) brokers.

2. (DMA) Direct Market Access Brokers also called (NDD) non-dealing desk brokers or (STP) Straight Through Processing brokers.

3. ECN Electronic Communication Network brokers

The Benefits of Using an ECN Broker

There are several benefits to using an ECN broker:

ECN brokers typically offer lower spreads than market makers, since they don’t add a markup to the spread.

ECN brokers offer greater price transparency since they must provide their clients with access to the best prices available in the market.

ECN brokers typically provide their clients with access to more liquidity, since they have access to multiple sources of liquidity.

ECN brokers are often more technologically advanced than market makers since they must keep up with the latest developments in the electronic trading world.

ECN brokers typically charge a commission for their services, but many traders feel that the lower spreads and increased liquidity are worth the commission.

Recommended ECN Trading Brokers

Choosing the correct broker for trading is critical to your trading journey, there are many factors you should take into consideration specifically for ECN trading before settling with the broker you may be trading with or when switching to a new choice broker which is best suited to your needs and factors which are important to you personally.

Broker

Regulators

Max. Leverage

Spreads

Trading Acc.

Instruments

Connect

FP Markets 

ASIC, CySEC

Up to 1:500*

From 0.0 pips

Broker Type:
STP | ECN | DMA 2 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, ETFs Crypto, Bonds

Eightcap

ASIC, VFSC

 Up to 1:500 

From 0.0 pips

Broker Type:
STP | ECN
 2 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

IC Markets

AFSL, ASIC, CySEC, FSA

Up to 1:500

From 0 pips

Broker Type:
ECN
6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

Axi 


ASIC, FCA, DFSA, FSC

Up to 1:500

From 0 - 0.4 pips

Broker Type:
STP | ECN
 3 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

InstaForex

BVI FSC

Up to 1:1000

From 0 pips

Broker Type:
MM | Binary
 6 Accounts

Forex, Indices,
Commodities,
Metals, Energies, Shares, Crypto

NordFX

VFSC

Up to 1:1000

Floating spread from 0.9 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

FXOpen 

ASIC, FCA

Up to 1:500*

Floating spread from 0 pips

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

Vantagemarkets

CIMA, ASIC, FCA

Up to 1:500*

From 0.4 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

RoboForex

FSC

Up to 1:2000

From 0.0 pips

Broker Type:
MM | STP | ECN
5 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
ETFs, Shares, Crypto

Fxview

CySEC, FSCA  and FSC

Up to 1:500

From 0.0 pips

Broker Type:
Raw | Zero | Premium
3 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

FBS

CySEC, FSC, FSCA, ASIC

Up to 1:3000 

From 1 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

Blackbull
Markets

FMA, FSA

Up to 1:500

From 0.0 pips

Broker Type:
STP | ECN

6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

  Review  


Blueberry Markets

ASIC, SCB

Up to 1:500

From 0.0 pips

Broker Type:
ECN | MM
2 Accounts 

Forex, Indices,
Commodities,
Shares, Crypto

  Review  


VALUTRADES

FCA, VFSC
CIMA, ASIC

Up to 1:500

From 0.0 pips

Broker Type:
ECN | MM
4 Accounts 

Forex, Indices,
Commodities,
Shares, Crypto

  Review  


FXGT

SFSA, FSCA, CySec*

Up to 1:500

From 0.0 pips

Broker Type:
STP | ECN

6 Accounts

Forex, Indices,
Commodities,
Shares, Crypto

  Review  


SVGFSA, FSC, FSA

Up to 1:500

From 0.0 pips

Broker Type:

STP | ECN 

3 Accounts

Forex, Indices,
Commodities,
Shares, Crypto

Exness

FCA, CySEC, FSA, CBCS, FSC, FSCA

Up to 1:3000

From 0.4 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

  Review  


FINMA 

Up to 1:100

From 0.1 pip

Broker Type:
STP | ECN
 7 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

ECN Brokerage – The Advantages of Using an ECN Broker

Using an ECN broker has several advantages: lower spreads, greater price transparency, more liquidity, and often more advanced technology. When choosing an ECN broker, make sure to consider factors such as commission and spreads, platform, account minimums, and customer service.

There are two main types of ECN brokers: retail and institutional. Retail brokers are typically geared towards individual traders, while institutional brokers are geared towards large banks and financial institutions.

The Different Types of ECN Brokers

There are two primary categories of ECN brokers: institutional and retail. Institutional brokers are geared toward large banks and financial institutions, whereas retail brokers cater to individual merchants.

Typically, retail brokers offer lower commissions and spreads than institutional brokers, but they may not offer as much liquidity or as many features and tools.

Retail ECN brokers

Retail ECN brokers typically offer their services to individual traders through online platforms. These brokers typically offer lower commissions and spreads than institutional ECN brokers. However, retail ECN brokers may not provide as much liquidity or as many features and tools as their institutional counterparts.

Retail ECN brokers typically offer lower commission rates and smaller spreads than traditional brokers. They also offer greater price transparency and more liquidity. In addition, retail ECN brokers often have more advanced technology, which can give you an edge in the market. When choosing a retail ECN broker, make sure to consider factors such as commission and spreads, platform, account minimums, and customer service.

Institutional ECN brokers

Institutional ECN brokers, on the other hand, are geared toward large banks and financial institutions.
These brokers typically offer higher commissions and spreads than retail ECN brokers. However, institutional ECN brokers may provide more liquidity and more features and tools than retail ECN brokers.

Institutional ECN brokers are typically geared towards large banks and financial institutions. They offer higher commission rates and larger spreads than retail ECN brokers.

However, they also offer greater price transparency and more liquidity. In addition, institutional ECN brokers often have more advanced technology, which can give you an edge in the market.

When choosing an institutional ECN broker, make sure to consider factors such as commission and spreads, platform, account minimums, and customer service.

How to Choose an ECN Broker

There are several factors to consider when choosing an ECN broker:

Commission and Spreads: Ensure you comprehend the broker’s commission structure and spreads. Others charge lesser commissions but larger spreads.

Platform: Make sure the broker offers a trading platform that suits your needs. And if they support the platform you prefer to trade on like MT4 or MT5

Account Minimums: Ensure that you understand the broker’s account minimums and requirements. Some brokers have account minimums that are greater than others.

Customer Service: Ensure that the broker provides excellent customer service and is available to answer your concerns.

Broker’s reputation: Ensure you investigate the broker and read reviews to determine what others’ experiences have been. You can also inquire in online forums and discussion rooms about the broker’s reputation.

Core Differences Brokers Have With Each Trading Account

Broker Types are ECN: Electronic Communication Network | STP: Straight Through Processing | DMA: Direct Market Access & MM: Market Makers.

Are you looking for a reliable ECN broker? ECN Brokers offers some of the best trading conditions in the industry!
With ECN Trading, you can trade with confidence, knowing that you’re getting the best possible price.
Open an account with an ECN Broker today!

Now you can Start Trading with an ECN Broker

Are you looking for a broker that can provide you with the best possible trading conditions?
With an ECN broker, you can trade with confidence knowing that you’re getting the best possible price.
Open a Trading account with an ECN broker today and start trading on the most favorable terms.

Choosing the correct broker for trading is critical to your trading journey, there are many factors you should take into consideration specifically for ECN trading before settling with the broker you may be trading with or when switching to a new choice broker which is best suited to your needs and factors which are important to you personally.
These are the brokers we have reviewed:

ECN Execution Recommended Brokers

FP Markets

Since 2005

Offices:

Australia, Cyprus, South Africa

FP Markets

Minimum Deposit:50 USD 
Account currency: USD, EUR, GBP
Leverage:1:500*
Accounts:Raw, Standard, Pro, IRESS account
Instruments Offered: Forex, Indices, Commodities, Metals, Energies, Shares, ETFs Crypto, Bonds
Trading Platform:MT4, MT5, cTrader, WebTrader, Mobile App,  Superior VPS solutions
Regulation:ASIC, CySEC, FSCA
Spreads:Raw:  from 0.0 pips,
Standard: from 1.0 pip   
Visit BrokerBroker Review

FXOpen

Since: 2005

Offices:

UK, Australia, Cyprus, Nevis 

  FXOpen

Minimum Deposit:$15
Account currency:GBP, USD, EUR
Leverage:Up to 1:500
Accounts:Micro, STP, ECN, Crypto, Demo
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform: MT4,   MT5*, TickTrader*  Free Forex VPS Hosting
Regulation:ASIC, FCA
SpreadsMicro: Floating Spread
STP: Tight Spreads
ECN: Raw Spreads
Crypto: Tight Spreads
Visit BrokerBroker Review

InstaForex

Since: 2007

Offices:

 British Virgin Isles

InstaForex

Minimum Deposit:From $1
Account currency:EUR, USD
Leverage:From 1:1 up to 1:1000
Accounts:Demo, Insta.Standard, Insta.Eurica, Cent.Standard, Cent.Eurica, PAMM
Instruments Offered:
Forex, Indices, Futures, Options, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:МТ4, МТ5, InstaTrader, WebTrader, Multiterminal, Mobile Trading, VPS hosting
Regulation:BVI FSC 
Spreads:0 pips: Insta.Eurica and Cent.Eurica;
3–7 pips: Insta.Standard and Cent.Standard
Visit BrokerBroker Review

EightCap

Since: 2009

Offices:

Australia, Vanuatu

EIGHTCAP

Minimum Deposit:$100
Account currency:AUD, USD, GBP, NZD, SGD, EUR
Leverage:1:30 for Australian clients
1:500 for Non-AU clients
Accounts:Standard Account, Raw Account
Instruments Offered:
Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:MT4, MT5, Mobile, VPS hosting
Regulation:ASIC, VFSC
Spreads:From 0.0 pips
Visit BrokerBroker Review

IC Markets

Since: 2007

Offices:

Australia, Cyprus, Seychelles

IC MARKETS

Minimum Deposit:200 US dollars
Account currency:USD, AUD, GBP, CHF, JPY, NZD, SGD, CAD, HKD, BTC
Leverage:From 1:1 to 1:500
Accounts:Demo, Raw Spread, cTrader, Standard, Islamic, PAMM
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Bonds Cryptocurrencies
Trading Platform:cTrader, MT4, MT5, WebTrader, VPS hosting
Regulation:AFSL, ASIC, CySEC, FSA
SpreadsFrom 0
Visit BrokerBroker Review

RoboForex

Since: 2009

Offices:

Belize

RoboForex

Minimum Deposit:$10
Account currency:USD, EUR, and GOLD
Leverage:1:2000 
Accounts:ECN, Pro, Prime, ProCent, R Stocks Trader
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies, Futures
Trading Platform:MT4, MT5, WebTrader, Free VPS-Server, R StocksTrader
Regulation:FSC 
Spreads:From 0.0 pips
Visit BrokerBroker Review

Conclusion

An ECN broker helps investors make trades through the ECN. Because of how an ECN works, working with these types of brokers also means lower costs and more time to trade.

The flow of orders is not sent to market makers by ECN brokers. Instead, they use computers to match up the people who want to trade and send the orders to middlemen in the securities markets.

Since an ECN broker matches trades between market participants, he or she can’t trade against a client or clients.

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Cory has been a professional trader since 2005, and holds a Chartered Market Technician (CMT) designation. He has been widely published, writing for Technical Analysis of Stock & Commodities magazine, Investopedia, Forbes, Benzinga, and others.