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How to Choose an ECN Broker

Choosing the Best ECN Broker for your trading needs, you should compare different brokers side by side. Some things to think about are the size of the commission, the number of currency pairs that are available, and the quality of customer service. By taking the time to compare ECN brokers, you can be sure to find the best one for your trading strategies.

Choosing an ECN broker

When choosing an ECN broker, it is important to do your research and make sure that you are choosing a reputable and reliable broker.

There are a few things you should consider when choosing an ECN broker, such as regulation, selection of currency pairs and other financial instruments, commissions and fees, and reputation.
By doing your research and considering these factors, you can choose the best ECN broker for you.

It is also important to note that not all ECN brokers are created equal. Some ECN brokers may be better suited for certain traders than others.

As such, it is important to find an ECN broker that fits your trading style and needs. By doing your research and considering your options, you can find the best ECN broker for you.

What is an ECN Broker?

ECN stands for Electronic Communications Network. An ECN broker is a type of forex broker that uses this system to connect its clients to other participants in the currency markets.

ECN brokers act as intermediaries in transactions between different market participants, including retail and institutional investors, banks, and other financial institutions.

ECN brokers are required to have certain minimum standards for their operations, including capital requirements and liquidity provisions. ECN brokers are also subject to regulation by competent authorities.

ECN brokers typically charge a commission for their services, rather than a spread. This commission is generally a small percentage of the value of the trade. ECN brokers may also charge a small fee per transaction.

ECN brokers typically offer their clients access to a wide range of currency pairs, as well as other financial instruments such as CFDs, futures, and options.

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

The Benefits of Trading with an ECN Broker

There are several benefits of trading with an ECN broker. One benefit is that ECN brokers provide their clients with access to the best possible prices in the market.

This is because ECN brokers have access to a large number of liquidity providers, which gives them the ability to offer their clients the best possible prices.

Another benefit of trading with an ECN broker is that they charge very low commissions and fees. This is because ECN brokers earn their revenue from the spread between the bid and ask prices, rather than from commissions and fees.
Finally, ECN brokers offer their clients a high degree of anonymity, which is important for many traders.

One of the main advantages of ECN brokers is that they offer their clients access to the best possible prices in the market. This is because ECN brokers have access to a large number of liquidity providers, which gives them the ability to offer their clients the best possible prices.

Another advantage of ECN brokers is that they charge very low commissions and fees. This is because ECN brokers earn their revenue from the spread between the bid and ask prices, rather than from commissions and fees. Finally, ECN brokers offer their clients a high degree of anonymity, which is important for many traders.

The Risks of Trading with an ECN Broker

There are also some risks associated with trading with an ECN broker. One risk is that ECN brokers may trade against their clients. This means that if the market moves against the position taken by a client, the ECN broker may take the opposite position in order to make a profit.

Another risk is that ECN brokers may provide their clients with inaccurate or misleading information. This can lead to losses for the client. Finally, some ECN brokers may be fly-by-night operations that are not properly regulated or supervised. This can lead to problems for the trader if the broker disappears with the trader’s money.

In order to avoid these risks, it is important to do your research and choose an ECN broker that is reputable and regulated. You should also make sure that you understand the risks involved in trading before you begin. If you are not comfortable with the risks, you may want to consider another type of broker.

Top Rated ECN Brokers

There are a number of reasons why an ECN broker might be rated highly by its clients. One reason is that the ECN broker offers its clients access to the best possible prices in the market. Another reason is that the ECN broker charges very low commissions and fees. Finally, the ECN broker may have a good reputation and be reliable.

ECN brokers are typically rated highly because they offer their clients a number of advantages. ECN brokers offer their clients access to the best possible prices in the market, which can save clients a significant amount of money.

In addition, ECN brokers typically charge very low commissions and fees, which can save clients even more money. Finally, ECN brokers often have good reputations and are considered to be reliable.

Now you can Start Trading with an ECN Trading Brokers

Choosing the right broker for ECN trading is crucial to your trading journey. There are many factors to consider before settling with your current broker or switching to a broker that better suits your needs and priorities.

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

Doing your due diligence when selecting a Broker

Know exactly what you need

To find the best ECN broker for your trading needs, you should compare different brokers side by side.
Some things to think about are the size of the commission, the number of currency pairs that are available, and the quality of customer service.
By taking the time to compare ECN brokers, you can be sure to find the best one for your trading strategies.

Do a background check on the broker

In the Forex market, ECN brokers are becoming more and more popular, but it’s important to do your research before choosing one.

First, check to see if they have licenses.
ECN brokers must get a license from a governing body in order to legally do business.
This makes sure that they have met certain standards and that they are still being watched.

Check what trading platforms they provide

The brokerage should be providing you with a trading platform that does connect to the  Electronic Communication Network. The trading platform should also be familiar which what you have been trading on before because learning the ins and outs of a new platform can take time.

Check the spreads that the broker has to offer.

Forex brokers look at two main types of spreads: fixed spreads and variable spreads.

Fixed spreads stay the same no matter what happens in the market, while variable spreads change based on how the market is doing.

Fixed spreads may look better at first, but traders may not be able to make money with them.
Because fixed spreads are usually set at a higher level than variable spreads, traders will pay more in commissions and fees.

Because of these things, most ECN brokers offer their clients variable spreads instead of fixed spreads.
As a result, if a broker offers you fixed spreads, you should think about this when making your choice.

Ensure you thoroughly understand the trading account the broker has to offer. Check also in the terms and conditions, the deposit and withdrawal terms, and the contract specifications of the assets you plan on trading.

Check the cost of the fees or commissions

One thing you will want to compare when looking for an ECN broker is the commissions they charge.
In general, you will be better off if you pay less commission.
This is because when your commissions are lower, you make more money.
So, make sure you look at the commissions that different brokers charge and choose the best one.
So, you can make the most money and move up in the trading business.

Check the execution time speed

Some brokers let you make deposits with as little as a certain amount of money, while others require a certain amount of money upfront before they will let you make any trades.
Check to see if your preferred ECN broker has fast execution times. This could be important if you want to get out of a position quickly when the market is busy.

Verify that the broker is a non-dealing desk.

Dealing desk brokers, who are also called “market makers,” trade against their clients’ interests. The difference between the ask and bid prices is how this broker makes money.

On the other hand, brokers like ECN brokers who do not have a “dealing desk” do not trade against their clients. Instead, each trade is charged a commission by these brokers. Because of this, the transaction costs for ECN brokers are higher than those for dealing desk brokers.

Cory Mtchell

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.