Thanks to recent technological advancements, small retail investors are able to trade the financial markets, ably competing with larger financial institutions. One of the most popular markets for these smaller traders is the Forex market news, where you can take advantage of price fluctuations on currency pairs. The reason why it’s so popular is that it’s the largest and most liquid market in the world. To be able to access this market, you need to use a broker and currently the most famous among them is the ECN.
An ECN broker stands for Electronic Communication Network (ECN). This type of broker provides its traders with direct access to other market participants via interbank trading prices. This network allows buyers and sellers in the exchange to find a counterparty of their trading positions.
Lower bid and ask spreads
When buying or selling financial assets, there is always a spread differential between the best available buy and sell prices. Because an ECN instantly matches orders from traders with the best available buy and sell prices from all participants in the forex market, this typically results in tighter bid-ask spreads.
Flexibility
ECNs allow for clients or investors to be able to participate and facilitate trades in market exchanges, outside the normal trading hours.
Speed
Trades are carried out immediately and at significantly thinner spreads.
Flat commission rate
Instead of making money off the bid-ask spread, ECN brokers usually charge a flat commission rate on each trade.
Trade Continuity
One of the key advantages of an ECN. Due to the nature of forex trading, a break is not required (nor is it experienced) between trades. When you make use of an ECN broker, you can openly trade during events and news, with it being possible to establish a real “flow” of activity. This also opens the door to is the chance for any trader to benefit from forex price volatility.
Access to Clients and Liquidity
ECN brokers work on a model that allows any and all the chance to trade within a global liquidity pool of competitive, regulated, and qualified financial institutions.
To help you find the best ECN brokers , we have combed through the market and found these to be most recommendable:-
- XtreamForex:-
Xtreamforex is one of the fastest growing best ECN brokers in the world. They have carved a reputation as a leader in online trading by providing a reliable, user-oriented trading environment built on the most advanced platforms. As the broker continues to grow internationally and establish themselves as a global brand, their main priority remains your profitability and success as a client.
The minimum deposit to open an ECN trading account is $250. Spreads start from just 0 pips and leverage of up to 1:400 is available. The minimum lot size to trade is 0.01 and a maximum of 50 lots are permitted. There is a $7 commission charged on this account. - BD Swiss:-
BDSwiss is a heavily regulated broker with Swiss banking license and worldwide coverage including US(Check out Forex Brokers in the US). BDSwiss has good reputation and user friendly trading conditions, there is good choice between trading platforms, account opening is fast and customer service is great quality with education and research tools.
Virtual Portfolio, or what is commonly known as a Demo Account
BDSwiss offers Advanced Financial Chart comparison tools along with Research-backed analysis on financial markets and investments from top analysts. It’s platform is available to use on multiple devices including Apple Mac computers, and online through a Web Browser. BDSwiss offers an easy to use trading platform with tools for both New Traders and Seasoned Experts - Blackbull Markets:-
BlackBull Markets is a multi asset platform with 60+ tradable Assets. Assets available on BlackBull Markets include Forex trading, CFD trading, Spread Betting, Social trading, Share Dealing. ECN Prime account at BlackBull Markets as it offers the best cost structure. The minimum deposit is $2,000 here compared to $200 for the ECN Standard account, but the minimum trading costs are $7 versus $8. The maximum leverage is 1:500, but most traders get between 1:100 and 1:200, which remains competitive. BlackBull Markets also offers an Islamic account, an institutional one, and a special offer for active traders. - Pepperstone:-
Pepperstone is a wholly-owned subsidiary of Pepperstone Group Limited, an Australian-based company established in 2010, which has quickly grown into one of the large forex and CFD worldwide providers. Pepperstone is a reliable broker with top-tier licensed FCA and ASIC, the account opening is fully digital and trading environment is one of the best Australian offering with ECN accounts, powerful research and trading tools. Education section is great quality and support is excellent.
