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ECN Forex Brokers


Most brokers on the internet today that let you trade Forex are called Market Makers. Even though you’ll probably never see this term used on your broker’s website, its important to note that if you had chosen an ECN broker instead, you would have had a few extra advantages on your side, not the least of which would be the Forex broker’s inability to make the market go against you either unintentionally because they are slow to react to price variations or intentionally because they are operating a true bucket shop designed to steal your money in Forex. On the other side of the industry there are brokers that are ECN brokers. What
is ECN? ECN stands for Electronic Communications Network. ECN brokers connect you a worldwide exchange of banks and other financial institutions where you can directly make deals. An ECN broker allows you to enter a bid inside or outside the spread allowing for
tighter spreads and more liquidity. Essentially, you become the market maker when dealing with an ECN Forex Broker because they are routing your order to the best possible match elsewhere in the world, eliminating the third (or fourth) party called the Dealing Desk. The following is a mixture of facts and generalities because every broker is different and will not offer the same things exactly.

More advantages of using an ECN:

  • Tighter Spreads (0-2 pips usually)
  • Better Rates
  • Pay Commission Per Trade (no Hidden fees in Spread)

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    For more information on ECN brokers, and how to compare the most popular ECN brokers on the net today, visit Forex Broker Comparisons special ECN BROKER PAGE.

    ZERO SPREAD ECN FOREX BROKERS

    Forex Club is a Broker that claims to have ZERO Spreads, that means, when you enter a trade at 122.25, you have to make up NO pips to break even. The only downside is the fact that FX Club charges commission of $4 per $10,000 traded. When it comes to commission based brokers, $4 is the average rate, $6 being the highest rate I’ve personally seen. FX Club offers to pay you back instantly commission they charge on your failed trades. To me the fact there is no spread is key because it helps me break even on trades that go against me more quickly than with other ecn or non ecn brokers. More on Forex Club here.

    new_f2DEMO THE FX CLUB PLATFORM

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