ECN/STP Forex brokers

 
BrokerECN available on accountsECN accountMax leverageMinimal LotCommission per round turn(100k)ScalpingAll EAs allowedSwap free account
NordFX(Visit)MT4-ECN accounts, Integral (from $20 000)10005000.01$5.00 ¨- $7.00yesyesno
HotForex(Visit)Currenex accounts5005000.0110yesyesyes
MFXBroker(Visit)Currenex platform accounts5005000.014.8yesyes
RoboForex(Visit)Pro ECN accounts3005000.016yesyesyes
EXNESS(Visit)ECN accounts100020000.015yesyesyes
Dukascopy (Suisse) SA(Visit)All accounts1001000.01$1.00-$9.60yesno
Gallant Capital Markets (GCMFX)(Visit)Pro account$50 0004000.010.5nonoyes
Pepperstone(Visit)Razor accounts2004000.01$7.00 (AUD)yesyesno
FXCC(Visit)ECN accounts10005000.018yesyesno
BMFN – Boston Merchant Financial(Visit)ECN accounts20002000.12.5yesyesyes
FXCM(Visit)FXCM Active Trader$25 000400(US-50)0.01$7.00 -$10.00yesyesyes
FXOpen(Visit)FXOpen Level II10005000.01$3.60-$5.00yes – ECN accountsyesyes
MB Trading(Visit)All accounts400500.01$5.90 or $0.00 (EXN plan)yesnono
Interactive Brokers(Visit)All accounts$10 000400.25yesn/ano
London Capital Group (LCG)(Visit)All accounts$25 0001001yesyesno
Finotec(Visit)ECN accounts?20002000.1$3.00 -$5.00yesyesyes
DF Markets(Visit)Level 2 accounts12000.01$6.00 – $10.00yesyesno
IKON Global Markets(Visit)Ikon Viking (institutional)1500500.012yesnoyes
IC Markets(Visit)ECN account$10 0004000.017yesyesyes
FXPRIMUS(Visit)ECN Premier accounts10005000.0110yesyesyes
RFXT(Visit)R-ECN accounts$10 0004000.1$2.00 – $5.00yesyesyes
FX Choice(Visit)ECN accounts10002000.016yesyesyes
Divisa Capital (DCFX)(Visit)All accounts25001000.16yesyesyes
ThinkForex(Visit)MT4 Pro accounts$10 0002000.0112yesyesyes
FxPro(Visit)cTrader accounts10005000.112yesyesyes
FIBO Group(Visit)ECN accounts10002000.016yesyesyes
AFX Capital(Visit)AFX Fast accounts$10 0005000.012.5yesyes
CitiFX Pro(Visit)Premium accounts$50 0001000.057yesno
Investorseurope(Visit)Currenex accounts20004000.1?yesyesyes
Deltastock AD(Visit)Level 2 accounts1002000.01$6.00 – $10.00nonono
Renesource Capital(Visit)FX PRO accounts10001000.1$2.50 – $5.00yesyesno
Real-Forex(Visit)VIP accounts$10 0002000.16yesyesno
FinFx(Visit)ECN & ECN Pro accounts10003000.1$6.00 – $7.00yesyes
3TG FX(Visit)ECN accounts5001000.0114yesyesno
Sunbird(Visit)MT4, G-Pro and Currenex accounts$10 000 – $50 0001000.01$8.00 – $10.00yesyesyes
Trader’s Way(Visit)ECN accounts1005000.001$2.50 – $4.00yesyesyes

An electronic communication network (ECN) is a financial term for a type of computer system that facilitates trading of financial products outside of stock exchanges. The primary products that are traded on ECNs are stocks and currencies.

There is no central exchange for Forex and trading is performed on an Over The Counter market. ECN trading gives you direct access to the interbank market where all its participants (banks, market makers and individual traders) trade against each other by sending competing bids and offers into the system.  Participants interact inside the system and get the best offers for their trades available at that time. All trading orders are matched between counter parties in real time.(You can trade with other traders and your orders are displayed in the market and are seen by others, who in turn can introduce their own orders and if the prices match, a deal is complete)

Forex ECN can best be described as a bridge linking smaller market participants with tier-1 liquidity providers through a ECN Forex Broker.

This linkage is done using sophisticated technology setup named FIX Protocol (Financial Information Exchange Protocol). At one end, the broker obtains liquidity from tier-1 liquidity providers (Major Banks) and makes it available for trading to its clients. On the other side, the broker delivers clients’ orders to Liquidity Providers for execution.

A true broker must display the Depth of the Market (DOM) in a data window, let clients show their own order size in the system and allow other clients to hit those orders. With ECN broker traders can see where the liquidity is and execute trades.

ECN Advantages:

  • Complete anonymous trading environment. Anonymity enables traders to deal on neutral prices, which reflect the real market conditions only.
  • Straight through processing with banks liquidity. The ECN model allows clients to trade on the global liquidity of world-class banks and qualified financial institutions.
  • Interbanks prices and spreads. ECN Forex brokers always have variable spreads. There is No dealing desk & No re-quotes. Customers can trade on prices streamed by multiple large banks and prime brokers.
  • A forex trader generally benefits from greater price transparency, faster processing, increased liquidity and more availability in the marketplace. All market participants are given an equal access and fair trading environment to best prices best spreads and fastest executions. Spreads as low as 1/10 of a pip on all majors. (A greater number of marketplace participants providing pricing to the ECN broker leads to tighter spreads.)
  • All trading styles are welcome (no restrictions).
  • Banks reduce their costs as there is less manual effort involved in using an ECN for trading.
  • No conflict of interest. ECN brokers are not making money on bid/ask (spread) difference. ECN’s typically charge a small fee (Commission)  for matching trades between their clients and liquidity providers. ECN brokers are interested in their clients to be winning, otherwise there will be no commission to earn. An ECN broker benefits from commission fees per transaction. The higher trading volume the broker’s clients generate, the higher the broker’s profitability.

Dealing Desk Brokers (Market Maker)  vs No Dealing Desk Brokers (STP, DMA/STP, Or ECN/STP), which one should I choose?

ECN > STP> Market Maker

Leave a Reply

Your email address will not be published.