Choosing the right broker that matches your trading style and experience in the Forex market can prove a difficult task. There are many out there, all offering different features and services.
So, how do you choose the best broker for you?
There are different aspects to keep in mind when coming to this decision, and taking your time, as well as doing your research, will prove valuable in the future.
If you’re interested in the benefits of using ECN when doing Forex trading, you surely want to check our selection of the best ECN brokers.
ECN brokers bring so much to the table, helping traders make more secure operations and getting their orders executed fast.
These brokers also offer the chance to trade out of the normal hours, adding flexibility to those that may not have a lot of time to sit in front of their online platform to execute orders.
Brokers offering the ECN system directly match buyers and sellers, facilitating the process and making it considerably faster.
Choosing for an ECN broker may mean eventually lower costs, more manageable risk, and more available time to trade.
What are ECN brokers?
ECN refers to Electronic Communications Network and it’s a digital system that allows sellers and buyers to get together to make trades.
It basically provides the information about the orders and executes them.
The goal of this network is to match orders, either buy or sell, that are available at the time. If it doesn’t find a matching order, it lists the options with the highest bid price and lowest ask one.
Traders find it useful, fast, and reliable to make transactions and ECN has earned a very good reputation as the best networking system in Forex trading.
There are several benefits of choosing an ECN system when trading in the Forex market.
Because it gives access to information it can be used as a learning tool, as well as making it easier and fast to execute orders.
Finally, ECN brokers provide added transparency and equality, making trading currencies more secure.
Disadvantages of ECN
The main drawback of ECN is that there is an added price to use it. Commissions tend to be higher and the added cost can have an impact on the profit traders are making.
While ECN can find trades with 0 pip, there is a cost per lot, and this fee should be taken into consideration when making transactions to make sure it’s worth the work put into certain trades.
Best ECN brokers 2021
Go Markets. This broker has earned a reputation as the best overall ECN broker. They have spread as low as 0 pips and a well-known fast execution time. They offer MetaTrader 4 and 5 for their online platforms. While their leverage is rather low, they focus on other strategies that traders may find useful when dealing in the Forex market.
FP Markets. This broker made our list of the best ECN brokers thanks to their offer of the lowest spreads to find in the market. Since ECN has an additional cost, finding low spreads is traders’ chance to make a more profitable deal.
They offer an MT4 online trading platform, as well as a variety the assets to deal with. They pride themselves on their execution time and good customer service.
XM. This broker has ranked the best ECN broker for beginners. Their initial prices are affordable, and they offer a variety of features that may be attractive to those just starting in the world of trading. Their customer service is very good, with 24 hours help, 5 days a week.