New Traders Must Consider These Points Before Using ECN Accounts And Hire ECN Brokers
ECN accounts match orders and execute them, charging only a commission for execution without placing any premium on the raw spread, whereas standard accounts are usually managed by market-making brokers, who artificially charge a premium spread to profit from execution. Besides, if you require trustworthy ECN brokers, you can go to http://www.vixbrokers.com/forex/ecn.html to find them.
What is an ECN account?
The ECN account is a pure order-matching execution system, whereby the account provider charges a premium as commission per trade instead of increasing the raw spread artificially which occurs naturally in the order-matching process.
What are ECN and STP?
“ECN” stands for “electronic communications network” and “STP” stands for “straight-through processing”. ECN brokers execute by matching client orders and STP brokers execute by forwarding client orders directly to external liquidity providers.
Which is better ECN or STP?
ECN accounts can offer tighter spreads and lower overall trading costs in liquid market conditions, but STP brokers can offer similar simplicity and execution costs without the downside of increased fees from the trading desk. Much will depend on the quality of service and the liquidity of the traded markets.
What is ECN trading?
ECN trading is trading via an ECN broker. ECN brokers offer a pure order-matching execution system, where the broker charges a premium as commission per trade instead of increasing the raw spread artificially which occurs naturally in the order-matching process. ECN trading fees tend to be cheaper above a certain trading volume.
What is an ECN MT4 account?
The ECN MT4 account is an ECN account offered by brokers that can be traded using the MetaTrader 4 trading platform.
How does ECN work?
An “ECN” (electronic communication network) is a “transaction desk-less” execution model in which a broker fills its client’s trading orders by matching the buying client with the selling client, who is supported by another broker or bank as a liquidity provider. ECN brokers profit from charging a commission per trade and have a less potential conflict of interest with their clients than market maker brokers.