Брокер Ecn Forex4you

Huzefa Hamid

ECN brokers (Electronic Communication Network brokers) are among the fastest emerging brokerages in Forex. In short, ECN Forex brokers provide a marketplace where traders & market makers can place competing bids against each other, sometimes as part of a hybrid ECN / STP execution model.

• FXTM, Best all-around broker with high floating leverage and fast execution.
• FP Markets, ECN trading with leverage up to
• Trade Nation, Simplified fixed cost trading for beginners.
• AvaTrade, Highly regulated, choice of fixed or floating spreads.
• BlackBull Markets, Best ECN trading environment, with scalping and hedging.

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CMA, CySEC, FCA, FSC Mauritius, FSCA	ASIC, CySEC, FSCA	ASIC, FCA, FSA, FSCA, SCB	ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID	FMA, FSA
ECN/STP, Market Maker	ECN/STP	Market Maker	Market Maker	ECN/STP, No Dealing Desk
$	$	$0	$	$0
pips	pips	pips	pips	pips
pips	pips	pips	pips	pips
$	$	$	$	$
MetaTrader 4, MetaTrader 5, Proprietary platform	MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based	MetaTrader 4, Proprietary platform, Web-based	Other, MetaTrader 4, MetaTrader 5, Web-based+	MetaTrader 4, MetaTrader 5, Trading View
Visit Website	Visit Website	Visit Website	Visit Website	Visit Website

A true ECN broker is a broker that plugs your orders into a network where it is automatically matched to a matching order from another client or liquidity provider. Most brokers claiming to be ECN brokers are probably telling the truth about this at least, although if you see generally large spreads, spreads that never seem to really vary, or continuously slow execution, they are almost certainly not.

A bigger problem arises when we ask what qualifies as a “liquidity provider”? If it is just another dealing desk, then how can it be a “true” ECN offering? A network is only as good as its source. To be regarded as a real ECN broker, the liquidity provider should really be a tier 1 bank. So, you must wonder why many brokers that advertise themselves as ECN brokers refuse to say which liquidity providers they use.

Another question is how orders for mini-lots ( lots), let alone micro-lots ( lots), could possibly be sent straight through to tier 1 banks for processing. An ECN broker offering smaller minimum trade sizes than full lots must inevitably perform a “bucketing” of orders, and that will require a kind of dealing desk to process and allocate the bucketing.

The final question is, does it really matter? If a broker is at least trying to match orders directly, there is not much of a conflict of interest, potential or otherwise.

Opening an ECN account follows the same process as any account type via a straightforward and convenient online application process.

Here are the steps to open an ECN account:

• Make sure your Forex broker offers ECN accounts
• Review the account parameters and ensure the ECN account offered is genuine and offers raw spreads and fixed commissions by volume traded.
• New traders should select the ECN account as an option during the account opening process, while existing traders should be able to add an ECN account from the back-office.
• Account verification is a mandatory step for first-time clients of a Forex broker.
• Funding the account is the final step to take before trading your ECN account.

An ECN broker runs a computerized system which matches its customers’ trade orders electronically and automatically. For example, customer A wants to sell 1 lot of EUR/USD at the price of Customer B wants to buy 1 lot of EUR/USD at the same price. An ECN broker will have a system that can match these two orders, where the broker does not take the other side of the trades. The ECN broker makes most of its profit from charging commission on each trade order which is matched.

You will know you are looking at an ECN broker when you see tight spreads and fixed commissions.

ECN brokers will observe different price offerings, known as quotes, from the different liquidity providers they use and offer their customer access to the one with the best spread. The spread will depend on the difference between the buying and selling price and it is measured in pips.

Spreads tend to be lower at ECN brokers, but ECN customers need to understand that the true “spread” is really the spread plus commission charged.

As ECN brokers do not “make a market”, when there are high-impact events in the market which trigger high volatility, it can actually be more difficult to trade normally with an ECN than it might be with a market-maker / no dealing desk broker.

• True ECN brokers do not profit from their clients’ net losses, removing conflict of interest.
• Order matching plus net orders to liquidity providers means fewer potential conflicts of interest.
• Lower overall cost of trading.
• Honest, automated, anonymous, and fast trade execution.
• Occasional inverted spreads.

• Once commissions are factored in, the smaller trader might find they are paying the same overall cost of trading as they would at a market-maker broker.
• Spreads can be very unpredictable in an ECN network and be especially wide during periods of unusually low liquidity, such as just before a major news release.
• Some ECN brokers do not offer trading in micro-lots but impose a minimum trade size of 1 mini-lot.
• Many ECN brokers require higher minimum deposits than market-maker brokers.

Once you place a trade, it will be matched with a buy or sell order from someone else in the world. It will be executed immediately and anonymously, and you will be charged a fixed commission price and probably a relatively low spread.

• ECN brokers give access to raw spreads for a fixed commission per volume while STP brokers offer commission-free trading with higher mark-ups, like market makers.
• Trading costs are generally lower at ECN brokers than STP brokers, making them better suited to high-volume traders.
• STP brokers can manipulate quotes while ECN brokers connect counterparties without being able to influence bid and ask prices.
• ECN brokers can offer a conflict-of-interest-free execution environment, but STP brokers walk a fine line and remain vulnerable to a potential conflict of interest, due to their ability to increase spreads.
• An ECN consists of a broad network of liquidity providers, including banks, prime brokers, hedge funds, and smaller market participants, which are used to match buyers and sellers. STP brokers pass on orders directly to liquidity providers.

The best ECN trading account forex broker for you will depend upon:

• Where you are resident – will the broker take you, for example USA. Also, tax reasons, for example UK residents can benefit from spread betting brokers.
• How large or small you trade / how often you trade / what you trade – these impacts cost of trading.
• Minimum deposit size you can afford.
• Regulatory framework and reputation of the broker.
• Size of spreads / commissions – medium and large traders should pay less than 1 pip overall on the benchmark EUR/USD Forex currency pair.
• Overnight financing rates (swaps) which are generally charged each day against positions left open at 5 pm New York time. For position traders, these rates can make more difference to overall profit and loss than the spreads charged. However, if you are going to be leaving trades open for only minutes or hours but making many more trades, the spreads become a more influential factor, and overnight financing may not be an issue at all.
• Quality of broker’s trading platform(s) - does it work smoothly, is execution fast? It is easy, intuitive, and pleasant to use?
• Ignore bonuses, they will not make a difference to your profitability, but discounts for large trading volumes can be worthwhile for traders of large quantities.

It is important for any broker to be regulated in order to keep your funds safe and protect you against fraud. Reputable brokers are generally multinational and therefore supervised by more than one regulatory body. You will be assigned to the broker’s legal entity most suitable to your country of residence, which means policies may differ between different geographical branches of the same broker.

An ECN broker will give you low spreads. However, they will charge commission as well as spread, unlike non-ECN brokers which typically will not charge commission.

For example, the broker FXCM offers a non-ECN “standard account”. Its minimum spread in trading the EUR/USD currency pair is pips, but no commission is charged. The broker fpmarkets offers an ECN account with an average spread of pips in EUR/USD but also charges a commission per trade (i.e. entry and exit) equivalent to pips. This means that under these conditions, the cost of each trade would be pips ( pip spread plus pips commission).

Funding and withdrawal methods will depend on each broker. Your options might be e-payments, debit cards, credit cards or bank wire transfers. Some brokers specify minimum and maximum withdrawal or deposit amounts. They might charge a fee depending on the method you choose, and the procedure can be immediate or take up to a few business days. In any case, no withdrawal should take more than three working days to process unless there are unusual circumstances.

Many brokers impose minimums or even maximums on deposits and withdrawals. Most typically, minimums are imposed on deposits and maximums imposed on withdrawals.

For example, the ECN broker fpmarkets will only accept a deposit that is at least $ or the equivalent. They impose maximum daily limits on deposit through certain payment channels due to anti-money laundering requirements. Regarding withdrawals, fpmarkets set no maximum limit as long as there are sufficient funds available in the account.

If you choose to deposit with an ECN broker, it might be a good idea to make sure they offer around-the-clock support. The reason behind this is because ECN brokers authorize 24/7 orders for crypto CFDs, and the Forex worldwide is open around the clock from Monday in New Zealand until Friday evening in New York. There are even a few Forex brokers offering weekend trading.

Once you know what your goals as a trader are, it is important to understand the types of brokers and what each of these has to offer. The first thing you should look at is the type of network they offer. These could be ECN, STP or the hybrid model which is ECN+STP.

Brokers can be categorized depending on the network they use to function, thus offering different prices, trading hours and execution times. The available systems are ECN, STP and ECN+STP.

Dealing Desk

A dealing desk is a network operated by certain brokers. When you place an order through a dealing desk, your broker will take the other side of your trade. In other words, the broker employs skilled professionals, or maybe operates an algorithm, to build an inventory of currencies which it passes off to its customers at different prices as required. There will usually be relatively fixed spreads, and they do not depend on an external liquidity pool. Dealing desk brokers are also known as market makers.

No-Dealing Desk

This means the market order does not pass through a market maker. Buys and sells go

directly to the liquidity provider. No-dealing desks can either be STP or ECN brokers.

STP brokers

STP stands for Straight Through Processing. It is a no-dealing desk broker. STPs will set prices and market conditions depending on the customer’s trade volume, performance, and account type. They offer relatively small commissions and higher spreads.

ECN brokers

An ECN broker will consolidate their prices after comparing costs from several market providers in order to offer the lowest spread. They will earn their profit by charging a fixed commission.

Hybrid Model

A hybrid model is when both ECN and STP models are fused together in order to create a better deal for both the broker and the client. They can use characteristics from ECN and STP to automate trades, change spreads and commissions, and work with different markets.

If you see a broker offer something called a “standard account”, that broker (or at least, that account) will almost certainly not be an ECN. They will probably be offering an account which operates under a market-making order execution. Make sure you know what you are getting.

We have listed what we consider to be the top 4 ECN brokers. We note there are a number of alternative brokers widely recognized as ECN brokers:

What are ECN brokers?

ECN brokers are non-dealing desk brokers offering right spreads, 24/7 trading hours, immediate execution, and fixed commissions.

Which is the best ECN broker?

It will depend on your needs. It is always a good idea to try out a demo account and see if the broker meets what you are looking for. Check the maximum leverage offered, minimum deposit required, range of assets, regulation, and platform types. If they match what you are seeking, that ECN broker deserves a place on your shortlist.

Which is better? ECN or STP?

In practice, there is often little difference between two execution policies where one is labelled “ECN” and other “STP”. To some extent these terms are ill-defined, as one may be used rather than another primarily for marketing purposes. The best approach is likely to be one of looking into and understanding the details of a broker’s actual execution policy rather than the label it gives itself, then comparing between prospective broker candidates.

How do ECN brokers make money?

ECN brokers make money from fixed commissions charged to the customer on each trade.

What Is an ECN Broker?

An ECN broker is a financial intermediary that uses electronic communications networks (ECNs) to give clients direct access to other participants in equity and currency markets. Because an ECN broker consolidates price quotations from several market participants, it can generally offer its clients tighter bid/ask spreads than would be otherwise available to them.

An ECN broker only matches trades between other market participants; it cannot trade against the client. ECN spreads are often narrower than those used by conventional brokers, but ECN brokers still charge clients a fixed commission per transaction.

Understanding ECN Brokers

The use of an ECN allows investors a way to trade outside traditional trading hours, providing a mechanism for those who either can’t be actively involved during normal market times or who prefer the flexibility offered by wider availability. It also avoids the wider spreads that are common when using a traditional broker and provides overall lower commissions and fees.

For those concerned about privacy, the ECN can provide a level of anonymity to those who desire it. This can be particularly attractive to investors interested in making larger transactions.

ECN brokers are non-dealing desk brokers, meaning that they do not pass on order flow to market makers. Instead, they match participants in a trade electronically and pass the orders to liquidity providers.

An ECN broker facilitates trades for interested investors across the ECN. Working with brokers of this nature often results in lower fees as well as additional trading time availability because of how the ECN functions.

Understanding the Electronic Communications Network

The ECN provides an electronic system for buyers and sellers to come together for the purpose of executing trades. It does this by providing access to information regarding orders being entered, and by facilitating the execution of these orders. The network is designed to match buy and sell orders currently present in the exchange. When specific order information is not available, it provides prices reflecting the highest bid and lowest ask listed on the open market.

Benefits of Electronic Communications Networks

Price feed transparency is also a byproduct that many consider a benefit because of how the information is transmitted. All ECN brokers have access to the exact same feed and trade at the precise price that is provided. A certain amount of price history is also readily available, allowing for easier analysis of particular trends within the marketplace. This helps limit price manipulation, as current and past information are readily available to all, making it more difficult to act unscrupulously.

Additionally, no trader has a particular built-in advantage over the other, as they all have equal access to the information.

Disadvantages of Electronic Communications Networks

One of the biggest drawbacks to using an ECN is the price to pay for using it. Typically, the fees and commissions for using an ECN are higher as compared to non-ECN systems. Per-trade-based commissions can be costly and can affect a trader's bottom line and profitability.

Investopedia does not provide tax, investment, or financial services and advice. The information is presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Investing involves risk, including the possible loss of principal.

Which forex broker has the best API?

Most forex brokers that offer automated trading provide some form of API connectivity. We've evaluated trading APIs from the best forex brokers in the industry, and determined which of those offerings stand out as exceptional. Read about our top picks for the best forex brokers for trading APIs:

Winner: FXCM

FXCM is our top choice for API trading. Four APIs are available, including REST, JAVA, FIX, and its ForexConnect proprietary software development kit (SDK).

FXCM’s ForexConnect provides access to a rich variety of trading API features, such as forex robots and automated trading systems, integrated trading data and pricing histories, and the ability to connect to custom trading platforms. ForexConnect supports a wide range of popular programming languages, such as Python, Java, C#, Visual Basic, and C++.

FXCM also offers a plethora of public resources to aid your coding projects, including dedicated Python packages that can be installed from the command line using Python, as well as open-source code for its public APIs on its GitHub page. Read our full-length review of FXCM.

Runner Up: OANDA

OANDA is another excellent choice for API trading, due to its robust documentation and the resources available in its developer portal. Three APIs are available: FIX, MT4, and the versatile v20 REST API.

OANDA’s v20 REST API grants access to a range of commonly sought-after trading API features, such as account management, historical pricing data and real-time trading rates, and the ability to place, modify, and close orders. You can read the full list of supported functions and features on OANDA’s developer page.

Like FXCM, OANDA has plenty of resources on its GitHub page, with public open-source code repositories to complement its API offering. Check out our full-length review of OANDA.

Podium Finisher: Interactive Brokers

Interactive Brokers offers a comprehensive API offering. Trader Workstation (TWS) is Interactive Brokers’ proprietary, open-source API, and traders can connect to Interactive Brokers’ trading system via FIX API.

Interactive Brokers’ TWS API delivers a powerful assortment of API features and functions. Traders can place orders, view positions, monitor portfolios, and automate trading strategies. TWS provides the ability to connect custom applications or platforms, and it supports a range of programming languages, such as Python, C#, C++, and Java.

Learn more about Interactive Brokers' API offerings on the IBKR Trading APIs site, and read our full-length review of Interactive Brokers.

What are APIs?

An Application Programming Interface (API) is a kind of coding (or set of codes) that is used to enable connections – or, transactions – between software applications, databases, operating systems, and servers.

One side of the transaction (usually known as the client) will send a request to access the data or features of an API-connected application or database. This request is received by the second party’s API (usually known as the server), which then either allows or denies the request based on a predefined set of rules (these are known as the API specifications).

What is a Trading API?

When trading forex, CFDs, and other financial instruments, trading APIs allow a user’s front-end system to connect to the broker’s back-end system through an encrypted communication channel. Practically speaking, this means that traders who utilize APIs are not committed to using the application or platform supplied by their broker. Instead, traders have the option to use third-party software or their own custom platform or app while remaining connected to their forex broker’s trading ecosystem.

Unlike a read-only API – which doesn’t permit trading or account operations – a trading API provides full access, allowing you to trade your brokerage account programmatically. Trading APIs provide the ability to send and cancel orders, retrieve live prices and historical data, and access account details such as balances and current market prices. APIs can even link traders’ automated trading algorithms to their forex broker’s platform (check out our guide to high-frequency trading to read more about algo trading and automated HFT algorithms).

Popular forex trading platforms MetaTrader and cTrader are well-known examples of third-party software that connects to your forex broker via API. Read our MetaTrader guide to learn more about the platform, and check out our MetaTrader 5 guide to get an in-depth look at the newest version of the MetaTrader software. My MT4 vs MT5 guide details the differences between the two versions of MetaTrader to help you make an informed choice.

Pros and cons of using trading APIs

What forex brokers have APIs?

Nearly all forex brokers that offer automated trading provide API connectivity, and even brokers that do not offer algorithmic trading may provide an API for public access. We've put together a list of the best forex brokers that provide free public API access:

• FXCM - FXCM’s ForexConnect API is a favorite of ours, due to its rich variety of supported functions. Also available at FXCM are industry-standard REST and FIX APIs, as well as the Java API (a wrapper SDK for FIX API).
• OANDA - OANDA’s API offering includes its v20 REST API, as well as standard FIX API support and API connection to MetaTrader 4 (MT4). Read more about OANDA’s API solutions on OANDA’s developer site.
• Interactive Brokers - Interactive Brokers’ Trader Workstation (TWS) is the broker’s proprietary, open-source API, which allows for connectivity to IBKR’s trading systems via FIX API. Read more about TWS on IBKR’s Trading APIs site.
• Saxo Bank - Saxo Bank’s REST OpenAPI powers nearly every end-user platform provided by the broker, and allows traders to build portfolio analysis tools, native applications, and use third-party apps. Learn more at Saxo Bank’s OpenAPI Developer Portal.
• IG - Available via its IG Labs site, IG's standard REST API and Streaming API provide access to the IG ecosystem - all you need is an IG account to get started.
• eunic-brussels.eu - eunic-brussels.eu’s REST API allows traders to execute trades, manage accounts, gather historical data for technical analysis, and code using popular programming languages like C++ and Python. Learn more at eunic-brussels.eu’s API Trading page.
• TD Ameritrade - TD Ameritrade supports a variety of API methods and functions, such as standard CRUD operations and an XML-based API. Learn more at TD Ameritrade’s Developer site.

How do I connect a forex API to a broker?

1. Read your forex broker’s API documentation (or, API specifications) to understand the specific API connection requirements. It’s also important to read up on the available software development kits (SDKs) and on any supported programming languages.
2. Next, you’ll need to make sure you have a demo or live account registered with your forex broker – you’ll need this to connect programmatically.
3. Request API access. Once registered, you'll receive your API key (make sure to keep this safe) – this will allow you to securely connect and access the API.
4. Once you’ve successfully connected to the API, you’ll likely need to debug and/or troubleshoot your code (or the third-party program you are connecting).
5. After handling any necessary troubleshooting, you can start using basic commands, such as accessing account balances and viewing live market data. Then, move on to more complex operations such as order and trade management.

eunic-brussels.eu Overall Rankings

Now that you've seen our picks for the top seven brokers for trading APIs, check out the eunic-brussels.eu Overall Rankings for forex brokers. We've evaluated over 60 forex brokers, using a testing methodology that's based on + data-driven variables and thousands of data points. Check out our full-length, in-depth forex broker reviews.

Here are our Overall Rankings for all 62 online brokers that we have reviewed and tested (read more about how we test):

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Methodology

At eunic-brussels.eu, our evaluations of online brokers and their products and services are based on our collected quantitative data as well as the qualitative observations and qualified opinions of our expert researchers. Each year we publish tens of thousands of words of research on the online forex brokerage industry, and we evaluate dozens of international regulator agencies (learn more about how we calculate Trust Score).

When assessing the best forex brokers for trading APIs, we conduct extensive research on a wide variety of API services, connections, and interfaces across the forex industry and evaluate each broker’s offerings based on a range of factors. Our research team also examines all publicly available API documentation in online broker resource portals and in GitHub repositories.

All web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running macOS to test trading APIs on the go. We also test on mobile devices; for Apple, we test using the iPhone XS running iOS 15, and for Android we use the Samsung Galaxy S9+ and Samsung Galaxy S20 Ultra devices running Android OS

All content on eunic-brussels.eu is handwritten by a writer, fact-checked by a member of our research team, and edited and published by an editor. Generative AI tools are not a part of our content creation or product testing processes. Our ratings, rankings, and opinions are entirely our own, and the result of our extensive research and decades of collective experience covering the forex industry. Read our Generative AI policy to learn more.

Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors with quality data they can trust. Click here to learn more about how we test.

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Read more on forex trading risks.

About the Editorial Team

Steven Hatzakis

Steven Hatzakis is the Global Director of Research for eunic-brussels.eu Steven previously served as an Editor for Finance Magnates, where he authored over 1, published articles about the online finance industry. A forex industry expert and an active fintech and crypto researcher, Steven advises blockchain companies at the board level and holds a Series III license in the U.S. as a Commodity Trading Advisor (CTA).

John Bringans

John Bringans is the Senior Editor of eunic-brussels.eu An experienced media professional, John has close to a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets. He holds a Bachelor’s Degree in English Literature from San Francisco State University, and conducts research on forex and the financial services industry while assisting in the production of content.

Blain Reinkensmeyer

Blain Reinkensmeyer has 20 years of trading experience with over 2, trades placed during that time. He heads research for all U.S.-based brokerages on eunic-brussels.eu and is respected by executives as the leading expert covering the online broker industry. Blain’s insights have been featured in the New York Times, Wall Street Journal, Forbes, and the Chicago Tribune, among other media outlets.

MT4 is a popular Forex trading platform that is adopted by a majority of Forex traders from across the globe. The significant penetration of the MT4 in the retail trading industry has resulted in a majority of traders being familiar with the trading platform from their early days of trading. In fact, traders who are comfortable with the MT4 will always look to trade on the MT4, even while switching to a new broker. Some mainstream brokers may offer better in-house alternatives that have an improved user interface and advanced features, but MT4 continues to dominate the market. Even professional traders find it hard to switch over to MT4 rivaling platforms, which make MT4 an attractive proposition for traders of different categories and varying levels of expertise.

How Does The Standard MT4 Terminal Work?

MetaQuotes primarily designed MT4 as a dealing desk platform for the FX market. A dealing desk model, or also known as a market maker model, is a system that allows a broker to accept orders from a trader and then pass it on to another trader that takes the opposite end of the trade. Essentially, a dealing desk broker works by filling positions in the market according to the demand and supply of the underlying asset. In case the broker does not have the liquidity in the market to pass on positions to their traders, the broker has the discretion to either take the other side of the trade or choose to refuse the order altogether. This is the main reason why regular MT4 traders experience a significant amount of requotes and slippages while trying to open a position in the standard MT4 trading platform.

Most ‘Micro’ and ‘Standard’ accounts offered by MT4 brokers follow the dealing desk model, which gives the broker the power to control the markets by choosing to accept or deny a trader’s order according to the market’s liquidity. Since such types of brokers have the power to interfere with a trader’s position, sometimes even taking the opposite side of a trader’s position, market maker brokers have a significant amount of conflict of interest with their clients. Some market maker brokers are also known to indulge in dishonest trading practices by manipulating the price feeds, by tampering with the trading terminal, or by modifying client orders in a way that is unfavorable for the trader.

Our Recommended Forex Brokers

*Trading bonus are not eligible for clients registered under Trading Point of Financial Instruments Pty Ltd< and Trading Point of Financial Instruments Ltd

The Relevance of MT4 ECN or STP/DMA Bridge

To counter the problems of market maker brokers, and to pass on the trades to a global liquidity pool, third party providers started developing technologies known as an ECN or STP/DMA bridge, which essentially allows the standard MT4 terminal to connect to a global liquidity pool without the help of a middleman. Therefore, with the support of an ECN or STP/DMA bridge, the broker does not need to worry about filling orders at the broker level, as the orders can be filled at market price through a global exchange.

ECN (Electronic Communications Network), STP (Straight Through Processing), and DMA (Direct Market Access) are technologies that connect a trader to the interbank foreign exchange market, which provides accurate price feeds and high-speed trading without the problem of requotes. There are significant differences between the ECN bridge and an STP/DMA bridge, which varies according to the features and functionalities. An ECN bridge offers access to vital data such as the market depth, the trades being processed in the marketplace, and the ability to implement partial execution of orders without fail. An STP/DMA bridge, on the other hand, does not provide access to the market depth or allow clients to view other orders in the market.

An ECN account also involves the tightest spreads but is often associated with commissions per trade. ECN accounts enjoy better trading conditions and are preferred by professional traders due to the lack of involvement from the broker. An STP account is also relatively safe from broker interference, but the spreads are higher, and the orders do take relatively more time to fill when compared to ECN accounts. One of the main advantages of an STP account is the lack of a commission per trade, but the cost is accumulated by the wide spreads that are often magnified during times of extremely low or high volatility.

How To Ensure Whether ECN MT4 Forex Brokers Offer An Authentic ECN Trading Platform?

There are many ways by which traders can guarantee whether ECN MT4 Forex brokers are indeed providing a genuine ECN bridge for their MT4 platform. First of all, ECN trading involves the tightest spreads, highly precise price feeds, and super-fast execution speeds. ECN trading should offer spreads that are lower than the regular price feed, and should always hover around 0 to 1 pip under normal market conditions for most major currency pairs. Also, a majority ECN brokers charge a commission per trade that can vary from $1 to $25 per round lot.

ECN MT4 platforms also offer information related to market depth and existing orders in the market. Since ECN connects a trader directly to the liquidity provider or the interbank exchange, orders are filled instantly without any requote or slippage. Of course, in case there isn’t enough liquidity in the market, ECN platforms will fill a partial order, which is not seen on regular STP or standard accounts where orders are either filled entirely or not filled at all.

What Are The Drawbacks of ECN MT4 Trading Platforms?

ECN terminals are susceptible to high market volatility, which can result in large gaps in pricing. The live and direct market access can induce slippage, which can both be negative or positive according to the incoming and outgoing orders at market price. The interbank rates change violently during regular market hours, and it can be difficult for retail traders to open a position at an exact price point. Brokers that offer a standard trading account usually filters the price feed to ensure a more smooth action, which can provide a steady market for traders. On the contrary, ECN tick charts are highly choppy in nature, which should induce substantial slippages.

True ECN accounts involve commissions and other trading restrictions, which typically prevent traders from opening micro lots or using a high leverage. Some brokers do support a high leverage on ECN accounts, but the amount of leverage for ECN accounts are considerably lower than standard or micro Forex trading accounts. Therefore, traders will require a larger trading capital to trade using true ECN conditions.

MT4 ECN Forex brokers are highly preferred by professional traders with a significant amount of trading capital due to the obvious benefits of direct access to the markets. ECN bridges are becoming hugely popular in the retail trading industry, and if you have access to a higher trading capital, you are better off with an ECN account rather than a standard or a micro account.

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If you are looking for the Best Forex Broker that is ECN based and provides the MetaTrader 4 platform, look no further. US citizens are rejected by most Brokers these days but there is still an option left for you. All of the tools available here at WaveFX Trading are designed for the MT4 platform and will work with any of the Brokers listed here.