you review the features of ECN forex brokers, you need to go over the factors that make ECN forex broker reliable, reputable and most wanted: Regulation - ECN broker might offer amazing trading conditions with lowest zero spreads and amazing innovative trading platform, however. Let spreads be fixed. It is a technology used by brokers to connect their clients directly with the liquidity providers of the Forex market. An STP broker therefore has 2 options:. The primary responsibility of a Forex broker is to facilitate a transaction at market price, where the underlying instrument can include Forex currency pairs, stocks, commodities, indices, metals, and ETFs. Conclusion: ECN brokers are the purest breed among all Forex dealers. Perfect For Large Traders ECN is more often the preferred trading protocol for large traders and institutional investors, due to the direct market access trading conditions and the reduced conflict of interest. With ECN broker, slippage is unlikely to happen due to the execution speed.
These estimates may not accurately reflect the typical spreads at times of unusual volatility such as major economic news announcements; long periods of unusual volatility such as the autumn of 2008; nor the daily times of low volume (thin liquidity) such as the morning hours. Innovative Features - The time is ticking and you can see more and more unique features added in forex industry. Market maker brokers are also known as dealing desk brokers, where all orders are transmitted through a companys dealing desk. In the worst case scenario, such broker can split clients into groups and put less successful ones on auto-execution and trade against them because on average they will lose, while clients that show signs of successful trading will be put on "slow-down" mode and can. While market maker can go all the way to 1:1000 leverage, even major ECN brokers cannot catch up with such leverage and this is also the reason for high minimum capital requirement. You can review such brokers with ECN accounts at our recommended Forex brokers list. The reliability and user-friendliness is a must when it comes to ECN forex trading platforms. With ECN broker traders can see where the liquidity is and execute trades. CTrader, on the other hand, is built from the ground up as a dedicated ECN platform.