ECN refers to an electronic trading platform designed to match long and short trading orders automatically. In the Foreign Exchange Market, ECN works as an electronic bridge linking tier-1 liquidity providers with Retail Traders. The whole process is done via an ECN Forex broker. The liquidity providers of ECN Forex trading consists of central banks, retail and investment banks, investment firms, market makers, retail and institutional Forex traders. The great advantages when trading with an ECN Forex Broker are (i) the tight spreads, and, (ii) the fast order execution without price manipulation.
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These are some Forex brokers offering segregated client bank accounts. All the following companies have been operating in the market for at least 5 years.
CFD BROKER
SAFETY OF FUNDS
TRADING TERMS
PLATFORMS / ASSETS
ACCOUNT INFO
BROKER'S INFO
■ ROBOFOREX
US TRADERS: NO
ISLAMIC ACCOUNTS: YES
EXECUTION: ECN/STP
REGULATION:
- FSC 000138/7
ACCOUNT SEGREGATION:
- YES
CORPORATE INFO:
The broker was founded in 2009 and it is based in Belize
CUSTOMER SUPPORT:
- English
- Arabic
- Russian
- Portuguese
- Spanish
- Kazakh
- Malay
- Czech
SPREADS
EURUSD: 1.3
GBPUSD: 1.4
USDJPY: 1.4
COMMISSIONS:
No
SCALPING: YES
AUTOMATED TRADING: YES
SLIPPAGE: 0.3 pip
PLATFORMS:
- MetaTrader-4, MetaTrader-5, MT4 for iPhone and Android
- R StocksTrader
- WebTrader
PAMM: NO
DEMO: YES
FREE VPS: YES
RoboForex welcomes scalpers and algorithmic traders
ASSETS:
35+ Forex currency Pairs
Stocks and stock-indices
Precious Metals
Energy Assets
Soft Commodities
MIN. DEPOSIT:
$10
DEPOSIT FUNDS:
- Credit Cards
- Bank Wire
- Skrill
- Neteller
- UnionPay
- Western Union
- PerfectMoney
TRADING PROMOTIONS:
- Cash Bonus
- Trading Rebates
KEY POINTS
- Fast and low-cost trading
- Free VPS
- PAMM Accounts
► Open a Real/Demo account with RoboForex
■ FXDD
US TRADERS: NO
ISLAMIC ACCOUNTS: YES
EXECUTION: ECN/STP
REGULATION:
- MFSA (Malta)
- FSC (Mauritius)
ACCOUNT SEGREGATION:
- YES
CORPORATE INFO:
The broker was founded in 2002 and it is based in Mauritious and Malta (EU)
CUSTOMER SUPPORT:
- English
- Arabic
- Russian
- Portuguese
- Spanish
- German
- French
- Japanese
SPREADS
EURUSD: 0.3
GBPUSD: 0.7
USDJPY: 0.5
COMMISSIONS:
$7.0 / lot
SCALPING: YES
AUTOMATED TRADING: YES
SLIPPAGE: (N/A)
PLATFORMS:
- MetaTrader-4
- MetaTrader-5
- WebTrader
PAMM: YES
DEMO: YES
FREE VPS: NO
Welcomes scalpers and algorithmic traders
ASSETS:
65 Forex currency Pairs
Stocks and indices
Precious Metals
Energy Assets
Soft Commodities
Cryptocurrencies
MIN. DEPOSIT:
$100
DEPOSIT FUNDS:
- Credit Cards
- Bank Wire
- Neteller
- UnionPay
TRADING PROMOTIONS:
- TradingCentral Analysis
- Market Reports
KEY POINTS
- Modern ECN Trading
- PAMM Accounts
- TradingCentral Analysis
► FXDD Real Account Registration
Review Broker:
■ TITANFX
US TRADERS: NO
ISLAMIC ACCOUNTS: NO
EXECUTION: ECN/STP
REGULATION:
- FSC Vanuatu (40313)
ACCOUNT SEGREGATION:
- YES
CORPORATE INFO:
The broker was founded in 2014 and it is based in Vanuatu
CUSTOMER SUPPORT:
- English
- Japanese
SPREADS
EURUSD: 0.2
GBPUSD: 0.57
USDJPY: 0.33
COMMISSIONS:
$7.0 per full traded lot
SCALPING: YES
AUTOMATED TRADING: YES
SLIPPAGE: (N/A)
PLATFORMS:
- MetaTrader-4
- MetaTrader-5
- WebTrader
PAMM: NO
DEMO: YES (Including Competition)
FREE VPS: YES
Welcomes scalpers and algorithmic traders
ASSETS:
60+ Forex currency Pairs
Stocks and indices
Precious Metals
Energy Assets
Soft Commodities
Cryptocurrencies
MIN. DEPOSIT:
$200
DEPOSIT FUNDS:
- Credit Cards
- Bank Wire
- Skrill
- Neteller
- UnionPay
TRADING PROMOTIONS:
- Free VPS
- Demo Competition with Cash Prizes
KEY POINTS
- ECN executions and tight spreads
- Free VPS
- Demo Account Competition
Review Broker:
■ IC MARKETS
US TRADERS: NO
ISLAMIC ACCOUNTS: YES
EXECUTION: CFD Provider
Note:
IC Markets will not allow European Traders and traders from Brazil.
REGULATION:
- FSA (Seychelles)
ACCOUNT SEGREGATION:
- YES
CORPORATE INFO:
The broker was founded in 2007 and it is based in Seychelles.
CUSTOMER SUPPORT:
- Chinese
- English
- French
- German
- Italian
- Japanese
- Spanish
SPREADS
EURUSD: 0.0
GBPUSD: 0.0
COMMISSIONS:
$7.0 / lot
SCALPING: YES
AUTOMATED TRADING: YES
SLIPPAGE: 0.8 pip
PLATFORMS:
- MetaTrader-4, MetaTrader-5, MT4 for iPhone and Android,
- cTrader, Mobile cTrader, cAlgo
- WebTrader
PAMM: NO
DEMO: YES
FREE VPS: YES (100 round turn lots per calendar month are required)
ASSETS:
- 61 currency pairs
- 4 major metals
- Equities (12 index CFDs)
- Energies (Brent and WTI)
MIN. DEPOSIT:
$200 for the MT4 account and cTrader accounts
FUND METHODS:
- Bank Wire
- Credit Card
- Skrill
- Webmoney
- Neteller
TRADING PROMOTIONS:
- Trading Rebates
KEY POINTS
- Not for European Traders
- Tight Spreads
- cTrader and cAlgo plus MT4
- Low latency
► Register a Real/Demo Account with IC MARKETS
Note:
IC Markets will not allow European Traders and traders from Brazil.
The Basic Features of the Electronic Communication Network (ECN)
The ECN network is designed to collect, display, and execute trading orders automatically without any intervention. Trading on an ECN network provides tight spreads, fast order execution, and full anonymity. These are some key points that differentiate trading via the Electronic Communication Network to other trading practices.
(1) Variable Spreads
- Spreads between ask and bid when trading via an Electronic Communication Network are variable and change according to the market volatility. Volatility usually changes during news releases or after important economic and political developments. Only those brokers who act as Market Makers (Dealing Desk) can offer fixed spreads. The problem with fixed spreads is that they are followed by high re-quotes at times when the market volatility soars. Therefore, the advantage of fixed spreads is lost. True ECN Forex brokers are offering variable spreads and don’t charge any re-quotes.
(2) Anonymity of Trading
- The trading activity of an Electronic Communication Network is anonymous. Trading anonymity means that every participant trades on the same conditions (neutral prices). In other words, real market conditions for all traders, no matter their trading volumes and their account size. This creates an environment of reliability in favor of retail traders.
(3) Huge Liquidity
- As the whole planet trades Forex currencies via the Electronic Communication Network, it is extremely difficult even for huge players such as large investment banks to manipulate the market. Moreover, the huge liquidity ensures the fulfillment of any order, even when market conditions become tricky. Of course, there is no rule without exemptions, and therefore, once in a couple of years, there might be problems in the fulfillment of trade orders. These problems usually occur after weekends and that is why professional traders do not maintain their positions after the closing of Friday.
(4) Volume Activity can’t be Measured Precisely
- As transactions of an Electronic Communication Network aren’t cleared by a central system, there is a lack of summarized volume data.
(5) Time Zones and GMT
- Forex traders around the world are living in locations of different time zones. Therefore, there is a little bit of confusion regarding when the market opens and closes daily. As a result, many traders use the Greenwich Mean Time (GMT) on their charts.
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