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What is an ECN Rebate?

An ECN rebate is a refund of a portion of the trading commission that is paid to the broker. For example, if you were to trade 10,000 shares of XYZ stock and your broker’s commission was $0.01 per share, you would pay a total of $100 in commissions.
However, if your broker offered a rebate of $0.005 per share, you would only pay $50 in commissions (10,000 x $0.005 = $50).

ECN rebates are available from a number of different sources, including brokerages, market makers, and ECNs themselves. The amount of the rebate varies depending on the source, but they typically range from $0.001 to $0.005 per share traded.

So how do ECN rebates work?

When you place an order to buy or sell a stock, your broker will route that order to an ECN. The ECN will then match your order with another order from another trader (known as the “counterparty”) and execute the trade. Your broker will then charge you a commission for executing the trade. However, many brokers will offer a rebate on that commission if your trade is executed on an ECN.

Should you use an ECN rebate service?

That depends on your trading strategy and goals. If you’re looking to save money on commissions, then using an ECN rebate service can be a good idea. However, if you’re more interested in getting the best possible execution price for your trades, you may want to avoid using an ECN rebate service.

What is Rebate Trading?

Rebate trading pays traders on each trade. If the trader makes many trades, the refund can mount up.

Rebate trading can minimize trading costs or boost strategy profits. Rebate trading can boost returns for traders using high-success but low-profit strategies.

Is Rebate Trading Risky?

Rebate trading requires market prediction, making it hazardous. Traders lose their rebate and transaction value if the market moves against them. Rebate trading is typically utilized by experienced traders who are confident in their market predictions.

Recommended ECN 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

How do ECN rebates work?

ECN rebates are offered to clients by Electronic Communications Networks (ECNs) for market liquidity. The ECN searches for a counter-order when a security is bought or sold. If successful, the trade is performed “in the market” and the ECN charges a commission.

“Out of the market” orders have no opposing order. The ECN will execute the trade, but it may provide the client a refund for providing liquidity. The refund is usually a modest portion of the trade value, depending on the ECN.

Active traders favor ECNs over traditional brokerages because of ECN rebates. When picking an ECN, consider the net effect of rebates and commissions since ECNs charge commissions on both sides of a trade.

ECN Rebates and You

Before signing up for an ECN rebate service, you need know a few things. They can help you cut trading costs.

Not all ECN brokers offer rebates. Ask your broker about rebates.

Second, trade volume determines rebate size. The refund grows with trades.

Third, the rebate service may require a commission. Compare the rebate service’s commission to the rebate’s savings to see if it’s worth it.

Fourth, some brokers impose a minimum balance to receive the rebate. Contact your broker to confirm.

Finally, ECN refunds should reduce trading expenses. They shouldn’t make money. Try a different trading method to make money.

Should you use an ECN rebate service?

An ECN rebate service can be a great way to save money on your trading costs, but there are a few things you need to know before you sign up for one.

First, not all ECN brokers offer rebates

What are the benefits of using an ECN rebate service?

There are numerous benefits to using an ECN rebate service, chief among them being the ability to trade with greater flexibility and freedom. By providing traders with direct access to the interbank market, ECN rebates allow them to trade on more favorable terms, often getting better prices than they would through a traditional broker. In addition, ECN rebates can help traders save on costs associated with trading, as they typically do not charge commissions or fees.

Another major benefit of using an ECN rebate service is the increased transparency it offers. Because trades are executed directly between market participants, there is no “middleman” taking a cut of the action. This increased transparency can help traders avoid potential scams and fraud, as well as giving them a better understanding of the market overall.

Finally, ECN rebate services can provide traders with access to a wider range of markets and assets. By connecting them directly to the interbank market, ECN rebates give traders the ability to trade a wider variety of currencies, commodities, and other assets than they would through a traditional broker.

What are the risks of using an ECN rebate service?

ECN refund services carry some risks. Brokers vary in quality. Brokers may fail, leaving you without funds or access to your account. Thus the importance of picking a broker with a segregated client fund account.

Brokers may change their terms and conditions, which could affect your costs or services. Finally, any financial institution can commit fraud, so always use trusted brokers.

Now you can Start Trading with an
ECN Account

Each broker has its own ECN Fees, which can be based on commission on lots or on spreads.

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

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

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

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

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

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

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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.