Let's first define ECN and how it works before determining which ECN brokers are the best in the world.
What is an Electronic Communications Network Broker？
In a word, when it comes to foreign currency trading, the goal is to make as much money as possible as often as feasible. There are two basic types of brokers in the forex market. STP brokers, or'straight-through processing,' are the first type of broker. This is the'middleman' who serves as a conduit between liquidity providers and you (the trader).
Then there are ECN brokers, who provide a direct line of communication between you (the trader) and the providers of trading assets (liquidity providers). The usage of an ECN'system' is what distinguishes an ECN broker from a regular broker.
ECN Brokers' Advantages
You must first choose a competent broker in order to have access to the forex trading market. This is due to the fact that forex is not traded in the same way as stocks and other assets, nor is it traded on the same regulated exchanges.
You may be able to access a variety of trading positions and exchange rates depending on the broker you choose. If you want to become a profitable forex trader, choosing the correct platform for your type of trader is critical, and here is where the top ECN brokers can assist.
Always double-check that the ECN broker you've picked (or are considering) is completely licensed and regulated. Many brokers register with multiple regulators, sometimes even multiples. As a result, your assets are protected by an additional degree of protection.
You should constantly double-check that your ECN broker offers the correct sort of trading accounts and platforms for you, in addition to ensuring that it is completely licensed. At the end of the day, this is a matter of personal choice and will be determined by your trading style.
Other factors to consider are technical indicator accessibility, trading conditions, necessary minimum deposits, acceptable payment methods, chosen currency pairings, and, of course, spreads.
Disadvantages of ECN
Realistically, most wonderful things, like light and dark, have drawbacks. With this in mind, we must warn you about some of the drawbacks that might accompany opening an account with an ECN broker.
Commission is set
Because ECN brokers do not accept spreads as payment for their services, each transaction will have a set charge and commission. It all relies on the size of your commissions and your trading budget. In other words, ECN brokers are unlikely to be suited for modest trading amounts, as a flat commission price would eat into your potential profits.
Deposit Requirements are High
In order to create an account with an ECN broker, platforms frequently demand a larger deposit cost. This is due to the high service costs and the ability to engage directly with liquidity providers.
Micro-Lots are prohibited.
Market players might occasionally maintain a position size of 10,000 currency units (or 0.1 lot) since liquidity providers have such high criteria and service charges. This implies that if you wish to create a position for less than this number, you will be denied.
1. Forex.com– Best All-Round ECN Broker
Forex.com is a currency trading platform that also provides other asset types. CFDs in the form of equities, commodities, and indices are included. Forex.com offers a full-featured ECN trading environment called GTX Direct.
This implies you'll be used to fees, spreads, and commissions that are competitively priced. You will get access to a wide range of majors, minors, and exotics with over 90 forex pairs available. Surprisingly, the site allows you to get started with just a $50 payment.
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High-grade ECN trading platform.
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$50 minimum deposit
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More than 90 forex pairs supported
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Other ECN platforms in the market are more competitive with fees
2. FXTM– Best ECN Broker for Zero Commissions
FXTM is a regulated online broker by the FCA and CySEC. You'll be able to trade anything in the form of CFDs, including FX, commodities, spot metals, and stocks. Its ECN accounts have a $500 minimum deposit requirement and offer $0 fees and narrow spreads. You will also have the option of using the MT4 and MT5 third-party systems.
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Zero commissions.
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Tight spreads
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Heaps of financial instruments supported
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$500 minimum deposit
3. Pepperstone Markets– Best ECN Broker Advanced Trading Platform
Pepperstone Markets is a well-known online trading platform that provides STP and ECN accounts. You will get access to MT4, MT5, cTrader, and ZuluTrade, among other trading platforms.
This is perfect for people that need advanced chart reading and sketching skills, as well as the capacity to deploy automated robots. It takes a variety of payment options, including debit/credit cards, PayPal, and bank transfers. If negative balance protection is available, you can safely engage in scalping and hedging.
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Low fees and spreads.
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Multiple payment methods supported
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Choose from four different trading platforms
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Real-time news is a bit basic
4. ThinkMarkets– Best ECN Broker For High Leverage
Think Markets is a regulated internet broker with many licenses. This covers the FCA as well. Think Markets provides ECN accounts in addition to a variety of other account options. This broker is popular among traders who wish to take advantage of large leverage limits. If you're a professional customer, this number jumps to 1:500.
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Zero commissions.
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Tight spreads
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Heaps of financial instruments supported
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$500 minimum deposit
5. RoboForex – ECN Accounts With 0 Spreads
ECN accounts are available through RoboForex, an online trading platform. You may start playing in minutes, and the minimum deposit is only $10. Best of all, when trading with an ECN account, you will not be exposed to any spreads. High liquidity and quick execution speeds are available on the platform.
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0 spreads.
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Minimum deposits just $10
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Fast execution speeds
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Relatively unknown in the brokerage scene
