From beginner to expert, whether the type of the retails is, the term ‘ECN Forex Broker’ is one of the most common and necessary things to know about. Today’s global trading industry is highly depended on ECN technology. And that’s why choosing an ECN broker can be a great move in your Forex trading journey. But choosing a right ECN broker is not that easy. To do so, first, you need to know how the ECN system works & then what ECN broker is. Then gradually you can find and sort out ECN broker list & finally, choose true ECN brokers for your regular trading. Now let’s dive into the main discussion.
ECN or Electronic Communication Brokers are also called non-dealing desk brokers.
Now maybe you think who are True ECN Forex Brokers. Yeah, this is a very important factor for every retailer. Generally, many brokers claimed to be ECN brokers. But in real practice, they have their dealing desk and try to manipulate the trade manually.
Now the question is how to trace these scams?
Genuine ECN brokers plug your order into the electronic network to match your order to a liquidity provider automatically. As a result, execution time becomes quicker, and the spread becomes lower in case of ECN trades. This is the most useful and easiest way to identify true ECN Forex brokers.
Additionally, you can also read online reviews, take a suggestion from your friends and if necessary consult with expert traders to find a true ECN broker.
Although choosing an ECN broker is not that different choosing other brokers. Still, you can consider the following factors carefully:
Since the world is getting automated, it’s high time to choose an ECN broker. Right now, traditional brokers are even entering into ECN network.
Since ECN finds your liquidity provider electronically, the chance of manipulation is lower than Market Makers. On the other hand, if you deal with a wide range of instruments, then Market Makers can give you better performance than a regular ECN broker.
If you don’t have a sound amount for minimum deposit or you are not willing to launch larger trade sizes, then you’ll face difficulties with ECN brokers. Besides, for the wide range of trading instruments, ECN brokers are not recommended.
Saint Vincent and the Grenadines.