A complete review of the Top ECN Forex Brokers to evaluate and pick the best ECN Forex Broker seeking to enhance their Forex trading skills, catering to all levels of experience:
ECN forex accounts are the types of accounts through which the broker provides, through necessary technology and processes, the trader with direct access to forex markets at the interbank level where big banks and financial institutions are directly dealing forex.
The lack of a broker’s intervention (dealing desk intervening) means the client gets top-notch liquidity, order execution at market prices, and tight spreads.
Table of Contents:
ECN Forex Brokers – Top Rated List
ECN brokers stream asset prices directly from liquidity providers and this helps with tightening the spreads to as low as 0 pips, achieving minimal slippage, as well as ensuring deep liquidity, pricing transparency, and ultra-low latency execution.
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Who is This Article for
This article is written for forex traders who want to understand ECN forex trading more, as well as beginner to experienced traders who want to better their stakes in Forex trading.
It is for those traders who want to research and better understand ECN and know with which ECN forex brokers they can trade forex. It is also for any company that wants to better their ECN forex trading offering, from services, trading pairs, trader support tool integration, etc.
How we Selected these ECN Brokers?
We chose and ranked ECN brokers on this list based on several factors including rating by customers, the spreads as well as the fees or commissions they charge on ECN forex, the range of product offerings that fall under ECN forex, etc.
Benefits of ECN brokers:
- Low spreads. No extra added to the interbank market spreads.
- Price transparency.
- Fast execution due to lack of price interventions.
- Minimum price slippage.
- Huge liquidity due to sourcing from multiple providers.
- Good prices as a result of huge competition from liquidity providers.
- Low entry barriers for instance through low deposit minimums.
How do ECN brokers work?
As earlier stated, ECN forex brokers use Electronic Communication Network technology and tools to directly avail interbank forex markets to retail clients. The latter can be individuals, banks, or other corporate clients who want to offer FX markets and services to their clients.
Unlike brokers with in-house dealing desks, ECN brokers pass on the benefits of low FX spreads to clients. However, ECN forex brokers make money by charging a commission or fees.
List of the BEST ECN Forex Brokers
Popular ECN brokers for Forex trading:
- RoboForex
- Pepperstone
- FXTM
- FP Markets
- BlackBull Markets
- IC Markets
- InstaForex
- Forex.com
Comparison Table of Top ECN Brokers for Forex Trading
| FX broker | EURUSD | Commissions | Minimum deposit | Maximum leverage | Our rating |
|---|---|---|---|---|---|
| Roboforex | From 0.1 pips | 20/Mio on all pairs | $10, $100 | 1:500 | 5/5 |
| Pepperstone | From 0 to 0.20 | 3 to 3.5 USD per lot, per side on Razor accounts. | 0 | 1:400 | 4.9/5 |
| FXTM | 0.20 pips | $3.92 to 4.88 total. Advantage Plus zero commissions | $10, $500 | 1:2000 | 4.7/5 |
| FP Markets | 0.1 pips | $3 USD per size per lot on Raw ECN accounts. | $10, $100 | 1:500 | 4.5/5 |
| BlackBull | 0.1 pips | $0 per lot per side on standard ECN accounts, $4 on Institutional, and $6 on ECN Prime. | $10, $100 | 1:500 | 4.5/5 |
Detailed reviews:
#1) RoboForex
RoboForex has two types of accounts that fall under ECN, namely ECN and Prime accounts. Traders can deal forex (36 pairs and 28 pairs on ECN and Prime accounts respectively) as well as other assets including metals, CFDs (on stock, oil, crypto, indices, and futures), and metals on both accounts.
The two accounts offer lower spreads, better commissions, and better execution than ordinary accounts. The ECN account offers upto 15% of commission as cash back or rebate and up to 50% partner commission or revenue share. With the Prime account, you can earn trading rebates of up to 10% commission and partner commissions of up to 25%.
How to open an ECN account with RoboForex:
Step #1: Visit the website and from the Trading tab, choose either ECN or Prime type of ECN account, click or tap ECN. Click or tap Open ECN account and fill in the details.
Step #2: Deposit money. The ECN account has a minimum deposit requirement of $10 and the prime $100. You can also choose to start with a demo trading account before depositing and trading.
Step #3: Choose the trading platform and open your first position.
Other Features:
- Low spreads from 0 pips (ECN) and 1.3 pips on Prime accounts.
- High leverage of up to 500 times (1:500) up to 300 times for Prime.
- Trade with MT4 and MT5, R WebTrader, MobileTrader mobile app, and other tools.
- Analytics, which include over 13 technical indicators, 9 charting tools, analysis from RoboForex experts, etc.
- Negative balance protection, Financial Commission Compensation Fund protections (fund insurance protection provided by the Financial Commission guaranteeing protection of up to €20,000 per case if the broker cannot adhere to a judgment by the FC).
- Quality of brokerage services verified by the Financial Commission through the Verify My Trade.
- The minimum order volume is 0.01 lots. The maximum is 500 lots. There is no limit on the number of positions for Prime (1000 on MT5 for ECN). Up to 500 active orders on ECN type.
- Partners can generate income through copy trading.
| Number of Currency Pairs | Up to 38 |
| Spread for EUR/USD (average) | 0.1 pips |
| Minimum Deposit | $10, or $100 for Prime accounts |
| Max Leverage | Up to 500 times |
| U.S. Clients Accepted? Yes/No | Yes |
| Regulation | FSC |
Pros:
- Deposit bonuses and affiliate/referral payments.
- Trading rebates.
Cons:
- Only a few currencies can be traded.
Spreads and Commissions: 0 pips to 28.4 pips on average. The minimum is 0 pips for all pairs. The commission is 20/mio per trade on all pairs.
Website: RoboForex
#2) Pepperstone
Pepperstone allows clients to deal CFDs of 60+ currency pairs and other over 1200 CFDs on commodities, indices, shares, and ETFs. The company also offers currency indices. The latter measures the direct changes in the value of a currency against a basket of other currencies.
It is a great way to diversify in FX trading and investing beyond the usual FX currency pair trading. The Indices available are the Euro Currency Index, the Japanese Yen Currency Index, and the US Dollar Index.
How to open an ECN account with Pepperstone:
Pepperstone offers two types of accounts, and one does not need to specifically target opening an ECN account. Edge Razor and Edge Standard accounts are all ECN types.
Razor (ideal for scalpers and those wanting automated trading) charges raw spreads (from 0 pips) plus commission. Standard accounts do not apply a commission but the spread is 1 pip markup.
Step #1: Visit the website or install the app. Click or tap Join Now and sign up with Apple, or email account, or other methods available.
Step #2: Key in the required details. Take a short questionnaire to test if you are appropriate to trade derivative products. Create a demo account. Download platform.
Step #3: Fund the account and start trading.
Other Features:
- Trade on TradingView, MT4, MT5, Capitalise.ai, and cTrader.
- Expert advisors/automated trading support available on all platforms. Also available is Social/copy trading functionality (Myfxbook, MetaTrader”Signals, and DupliTrade partners).
- Auto technical analysis and pattern recognition with Autochartist. Also available are smart trading tools added onto the MT4 platform.
- Trading education, market analysis from experts, webinars, trading guides, economic calendars, etc
- Minimum trade size 0.01 lot.
- Free VPS, APIs.
- Trading and account balance insurance: £85k to the UK, €20k to EU clients, and $0 to others.
| Number of Currency Pairs | 60+ |
| Spread for EUR/USD (average) | 0 to 0.20 on Razor accounts, 1 to 1.20 pips on standard accounts. |
| Minimum Deposit | $0 |
| Max Leverage | Up to 400 times |
| U.S Clients Accepted? Yes/No | Yes |
| Regulation | ASIC, BaFin, CMA, CySEC, DFSA, FCA, and SCB. |
Pros:
- Integrated trader support tools which include Autochartist, Myfxbook for copy trading, DupliTrade which has auto and copy trading, Capitalise.ai, etc.
- High-volume traders receive free VPS and technical support.
Cons:
- Services are limited to some regions (for instance, no access for U.S. clients) and so are the insurance and risk management options such as negative balance protections and guaranteed stop-loss orders for non-U.K. clients.
Spreads: From 0 pips for majors. 0.20 to 0.5 pips on average for majors on Razor accounts and between 1.00 to 1.10 on standard accounts for majors. 0.40 pips to 2.3 on minors for standard accounts and between 1.10 to 2.20 pips on Standard accounts (variable). Others range between 0.40 pips and 900 pips on average depending on account type and FX pair.
Commission on Razor is 3 to 3.5 USD (per lot, per side).
Website: Pepperstone
#3) FXTM
FXTM allows traders to access deep liquidity at the interbank FX market level at very low spreads, starting at zero for major FX pairs. It offers three types of accounts.
These are Micro, which charges a spread of from 1.5 pips and no commissions at all, Advantage whose spreads start at 0 pips with commissions averaging at $0.4-$2 based on volume, and Advantage Plus which has spreads starting at 1.5 pips and zero commissions.
The company’s micro accounts are most suitable for those starting to trade FX and want to take it slow. The low minimum deposit requirement on these accounts allows the traders to do so. Advantage account is ideal for most popular traders and carries some benefits including spreads of as low as zero for the majors.
The Advantage Plus is even more favorable for most popular traders because it features zero commission, though it has wider spreads.
Further Reading => Read our Detailed Review of Exness Trading Broker
Clients can also trade metals, commodities, indices, stocks CFDs (on MT5), and cryptocurrencies.
How to create an ECN account with FXTM:
Step #1: Create your profile on the website or app. Choose the type of account.
Step #2: Fund your account.
Step #3: Download the trading platform if needed and login with the account details.
Step #4: Start trading.
Other Features:
- Trade on MT4. MT5, and on mobile app.
- Insurance of up to $1 million.
- Trading education, ebooks, trading videos, etc.
- Copy trading.
- Strategy managers can also share their trading set-ups with clients. You simply choose a Strategy Manager based on your investment amount and copy their strategies. Trades are mirrored automatically. Pro traders can also become strategy managers.
| Number of Currency Pairs | 60+ |
| Spread for EUR/USD (average) | to 0.20 on Razor accounts, 1 to 1.20 pips on standard accounts. |
| Minimum Deposit | $10 on micro accounts. $500 on Advantage and Advantage Plus accounts. |
| Max Leverage | From 3 times up to 1000 times for micro accounts and up to 2000 times for Advantage accounts. |
| U.S Clients Accepted? Yes/No | Yes |
| Regulation | FSC (Mauritius), and FCA (U.K.) among others. |
Pros:
- No deposit minimums.
- Trading support from strategy managers, including copy trading.
- Regulation across 7 jurisdictions (ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec)
Cons:
- High non-trading fees. Higher inactivity fee compared to most other brokers ($50 per year after one year of inactivity). Withdrawal fees are also up to $40.
Spreads: 0 pips to 1.6 pips for majors, 0.1 pips to 7.5 pips for minors, 0 pips to 53 pips for exotics.
Commissions: $2 per lot which translates to between $3.92 to $4.88 in total commission depending on the FX pair and contract size.
Website: FXTM
Check our FXTM Detailed Review Here
#4) FP Markets
With spreads as low as 0 pips, FP Markets offers one of the best ECN trading experiences since pioneering the Direct Market Access contracts for difference trading model in Australia.
The market offers access to 70+ forex pairs as part of the over 10,000 tradable instruments including stocks, cryptocurrencies, shares, metals, bonds, ETFs, and indices.
FP Markets provides Standard MT4/5 and Raw MT5/MT5 accounts as forex account types. The latter carries a spread of from 0 pips but charges a commission of $3 USD per size per lot while the former carries spreads starting at 1 pip and does not charge a commission on trades.
Both of the account types have a leverage of up to 500 times, access to 70+ forex pairs, minimum trade size of 0.01 lot $100 AUD deposit minimum requirement.
Through the broker, 34 FX currency pairs are available for trading using DMA accounts through Iress. Share CFDs, futures CFDs, indices, and commodities are also tradable via DMA accounts.
Otherwise, the platform enables access to 10,000+ trading instruments. It has garnered 25+ industrial awards to prove its proficiency as a broker.
Other Features:
- Trade on cTrader, MT4, MT5, WebTrader, VPS, and the platform’s iOS and Android mobile trading app.
- Social and copy trading via Myfxbook Autotrade.
- Autochartist is also supported for automating technical analyses to decipher any trading opportunities based on market movement patterns. Trading Central also delivers automated AI analysis alongside blended expert inputs (technical, fundamental, and sentimental analysis as well as economic research). Signal provision is also supported. Other tools include Forex Calculator and 12 online trading tools on top of MT4/5.
- Multi-Account Managers (MAM) who trade on behalf of clients in exchange for a percentage of the profit made. PAMM or percentage allocation management module manager which is a form of pooled money forex trading also is supported.
- It is regulated by the Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSA (U.K.), and Financial Sector Conduct Authority (FSCA) in South Africa.
- Insurance is €20k to EU clients, and $0 to others.
| Number of Currency Pairs | Up to 38 |
| Spread for EUR/USD (average) | 0.1 pips for raw spread ECN accounts, 1.1 pips for standard accounts. |
| Minimum Deposit | $10, or $100 for Prime accounts |
| Max Leverage | Up to 500 times |
| U.S Clients Accepted? Yes/No | Yes |
| Regulation | FSC |
Pros:
- Over 10,000 tradable financial instruments and symbols.
- Leverage of up to 1:500.
- MAM/PAMM accounts for money and allocation managers.
Cons:
- The minimum deposit for advanced accounts is $500. There also are high money transfers from banks.
Spreads and Commissions: From 1.1 pips to 13552.5 pips on average on Standard accounts (minimum is 0 pips and Majors have a spread remaining at below 1.6 mainly) and 0.2 to 13552.5 pips on average on Raw ECN accounts (spreads on Majors remain mainly at below 0.5 on average).
Commission of $3 USD per size per lot on Raw ECN accounts. Overnight charges apply.
Website: FP Markets
#5) BlackBull Markets
BlackBull Markets, which offers 70+ FX pairs, utilizes a Straight Through Processing ECN platform. In addition to the wide range of FX pairs provided, clients can trade 26,000+ financial instruments including stocks, CFDs, and commodities.
BlackBull Markets offers three types of accounts namely Standard (with spreads from 0.8 pips and no commission), Prime (with spreads from 0.1 pips and a commission of US$6.00 per lot), and Institutional (which carries a spread of from 0.0 pips and a US$4.00 per lot commission).
Other Features:
- $0 deposit for Standard, $2,000 for Prime, and $20,000 for Institutional accounts. Up to 500 times leverage. 0.01 lots minimum trade for all accounts. Swap-free accounts are available for all types except institutional.
- Trade commodities, equities, indices, crypto, metals.
- Platforms supported – TradingView, MT4, MT5, BlackBull Trade, BlackBull CopyTrader, BlackBull Shares.
- Copy trading via the BlackBull CopyTrader. Risk management techniques are supported for use within the copy trading platform.
- Market analysis, education, tutorials, economic calendar, market reviews, etc. webinars, etc.
- FSA regulation.
| Number of Currency Pairs | Up to 38 |
| Spread for EUR/USD (average) | 0.1 pips for raw spread ECN accounts, 1.1 pips for standard accounts. |
| Minimum Deposit | $10, or $100 for Prime accounts. |
| Max Leverage | Up to 500 times. |
| U.S Clients Accepted? Yes/No | Yes |
| Regulation | FSC |
Pros:
- $0 minimum deposit for ECN standard accounts.
- No deposit fees for all applicable deposit methods (credit cards, bank deposits, Skrill, and Neteller).
- Trade 26,000+ financial instruments although FX pairs are 70+.
Cons:
- ECN Prime and Institutional accounts have high deposit minimums at $2,000 and $20,000.
- $5 withdrawal cost on all methods.
Spreads and Commissions: 1.5 pips to 750.2 pips. Most remain at below 10 pips.
Daily swap rates apply every day and thrice on Wednesdays. $0 per lot per side on standard ECN accounts, $4 on Institutional, and $6 on ECN Prime.
Website: BlackBull
#6) IC Markets
IC Markets is a CFD provider offering an ECN pricing model (pricing sourced from liquidity providers and passed directly to clients) because it does not have a proprietary trading book or dealing desk. That said, it offers three types of Forex trading accounts.
These are Standard MetaTrader 4/5 account which charges spreads from 1 pip and no commissions, and the Raw Spread MetaTrader 4/5 and cTrader Raw Spread account which have spreads as low as 0 pips and applies a commission ($3.50 per lot payable per side for Raw Spread and $3.0 for cTrader Raw Spread account).
It offers access to 60+ FX pairs and up to a leverage of 1,000 times (starting 1:1) on Standard and cTrader accounts. The trading size can be as low as one micro lot (0.01) and up to 10 currencies are supported on Standard accounts.
The Raw Spread accounts, which are ideal for institutional grade trading, also access up to 1,000 times leverage and no limitations on trading. There is also a swap-free Islamic account.
Other Features:
- Trade on VPS, ZuluTrade, WebTrader, MT4, MT5, Mac, Android, and iOS. cTrader Web, cTrader Mobile, and cTrader Automate are also supported. cTrader Automate allows for building GUI and API-automated trading systems. cTrader Automate also offers downloadable custom indicators and robots.
- Social and copy trading through the IC Social mobile app (allows to analyze, learn, share, and copy trades).
- Also deal CFDs of commodities, indices, bonds, digital currencies, stocks, and futures.
- Education, Web TV, webinars, tutorial videos and articles, economic calendar, FX calculators, etc.
- Insurance cover of up to US$1,000,000 per client (covers all IC Markets clients of Raw Trading Ltd in case of the latter’s insolvency) for available balances and open CFD positions.
- Regulation – FSA. $200 Minimum deposit.
- Insurance is €20k to EU clients and $0 to others. Non-EU clients do not have any financial protections.
| Number of Currency Pairs | 60+ |
| Spread for EUR/USD (average) | 0.1 |
| Minimum Deposit | $200 |
| Max Leverage | 1:1000 |
| U.S Clients Accepted? Yes/No | Yes |
| Regulation | CySEC (Cyprus), ASIC (Australia), SFSA (Seychelles). |
Pros:
- Leverage of up to 1:1000.
- Free deposits and withdrawals.
- cTrader Automate, ZuluTrade, and IC Social app are some of the trader support tools integrated.
Cons:
- Higher deposit minimums at $200 compared to other platforms.
Spreads: Raw Spreads account, starting from 0 pips but the average is between 0.02 to 0.25 pips for majors, 0.38 to 0.86 pips for minors, and 0.9 to 138.98 pips for exotics. Standard accounts, 0.74 to 0.85 for majors (minimum is 1 0.6 pips), 1.3 to 2.98 for minors, and 1.85 to 139.98 pips for exotics.
Swap or overnight fees apply.
Commission of $3.0 per lot per side on cTrader Raw Spread accounts, $3.5 per lot per side on Raw Spread ECN accounts, and zero commissions on standard accounts.
Website: IC Markets
#7) InstaForex
InstaForex offers four types of FX trading accounts. The first is Insta.Standard with fixed spreads and a minimum deposit of $1, $100, or $1000 depending on the sub-category of account. Insta.Eurica, which charges no spreads, has a higher offer price for pairs, and Cent.
Standard and Cent.Eurica which features a low minimum lot volume of just 0.0001 of the market lot (0.1 U.S. Cents). The latter two are most suitable for beginner traders, the Insta.The standard for any type of trader and Insta.Eurica for newbies.
In addition to FX, you can trade CFDs, indices, futures, IPOs, and crypto.
Further Reading => Best US Forex Brokers of the Year
Other Features:
- Invest in other professional traders through copy trading (through CopyForex and the PAMM system). Can copy trades without the trading platform. Also, earn income as a pro trader.
- Individual online training
- Get forex signals via a mobile app Forex Signals. Analytics. News, training for beginners, tutorials, demo accounts, trading contests, etc.
- Leverage of from 1:1 up to 1000 times for all account types.
- Analytics – Chief Strategist, reviews, economic calendar, video analytics, TV, events, and trading sessions.
- Deposit bonus of 100%, a 30% bonus on deposit, and a club bonus of 30% for InstaForex Club card holders.
- Trade over the web through WebTrader, on mobile via MobileTrader app, VPS, MT4. MT5, Multiterminal.
- The minimum deposit is $1 for Micro Forex but for others from $100 to $1000 max.
- Up to €20,000 IFC insurance for European Union clients.
| Number of Currency Pairs | 60+ |
| Spread for EUR/USD (average) | 5 pips |
| Minimum Deposit | $1 — $1000 |
| Max Leverage | 1:1000 |
| U.S Clients Accepted? Yes/No | Yes |
| Regulation | Financial Services Commission (FSC) under the Securities and Investment Business Act (SIBA), the British Virgin Islands (BVI) |
Pros:
- Maximum leverage is 1:1000.
- InstaSpot P2P trading, OYS accounts, Stock Baskets, Forex Signals, PAMM accounts, and copy trading are some of the best tools to use on the broker platform.
- 100% deposit bonus.
Cons:
- High deposit minimums for Standard Forex accounts ($1,000) although Mini Forex has a minimum deposit of $100 and Micro accounts $1-$10.
Spreads: 3 – 7 Pips on Insta.Standard and Cent.Standard (no fees), 0 pips on Insta.Eurica and Cent.Eurica accounts (0.03 – 0.07 % fees). Commissions are 0.03%-0.07% per trade for Insta.Eurica and Cent.Eurica.
Website: InstaForex
#8) Forex.com
Forex.com clients can trade 80+ FX (60+ for DMA accounts) pairs and suits all types of traders but most ideal for high-volume traders because it offers trading rebates in addition to the tight spreads arising from direct connection to interbank markets.
Although US clients won’t be protected with insurance against losses or guaranteed stop losses, the U.K./E.U. client accounts enjoy a protection of up to £85,000 as provided by the FCA and ESMA-mandated negative balance protection. Canadian Investor Protection Fund also offers protection for Canadian clients.
Although it started as a market maker, it is now an EXN broker. One can open a Direct Market Access (DMA) account that does not have any spreads but charges a commission. Other types of accounts are MT5 and Raw Spread accounts. DMA is ideal for institutional traders.
Forex.com also deals in stocks, bonds, ETFs, gold and silver metals, and cryptocurrencies.
Other Features:
- The minimum trading size is 100k for DMA accounts.
- DMA comes with a dedicated market strategist, waived wire fees, no spreads, and reduced commission based on volume traded. Also available for DMA is professional guidance from a relationship manager.
- TradingView is built into the platform. 80 technical indicators and a host of charting tools.
- Regulated by FCA (U.K.) & CFTC, NFA (U.S.
- Trading education and guides, access to charts, economic calendars, news, positions, trade/order history, research reports, trading signals, market analysis wrap articles, and market analysis from experts. Trading Central technical analysis reports. Privileged research is accessible to premium and pro account holders.
- Trade on NinjaTrader, MT4, MT5 (which allows for automated trading), VPS, MetaTrader Mobile, MetaTrader web, and MetaTrader EAS. API is not accessible for DMA accounts.
- Performance Analytics tool analyzes past account trading activity and performance.
- 1% APY interest on your average daily available margin.
| Number of Currency Pairs | 80+ |
| Spread for EUR/USD (average) | 1.3 |
| Minimum Deposit | $100 |
| Max Leverage | 1:50 |
| U.S Clients Accepted? Yes/No | Yes |
| Regulation | CIMA, FCA (U.K.), FSA (Japan), CFTC (USA), IIROC (Canada), ASIC (Australia). |
Pros:
- High volume trading rebates.
- CIMA, FCA, FSA (Japan), NFA, IIROC, and ASIC regulations.
Cons:
- No account protections for U.S. clients and for non-U.K. clients. No guaranteed stop losses and negative balance protection for clients in non-U.K. locations.
Spreads and Commissions: Commission of between $20 and $60 per USD million traded for trading volume of between $2B+ and $0. Reduced commission of between -67% and 0% for the same.
Swap or overnight fees apply. An inactivity fee of $15/month also applies after 12 months of inactivity.
Website: Forex.com
Suggested Read =>> Top Forex Brokers of the Biggest Financial Markets
Factors to Ponder When Picking ECN Brokers
#1) Trading Costs: While the prices are directly streamed from liquidity providers, a commission is usually applied per trade. One needs to consider the brokers charge how much of a commission per trade.
Best ECN brokers offer rebates on commissions and spreads as one trades more (tiered commission structures). Non-trading costs also matter, including the most important withdrawal, deposit, overnight, and currency conversion fees.
#2) Trading Platforms Supported: Best ECN brokers allow traders to do advanced charting and market analysis by supporting a host of tools, open multiple time frames, trade right from charts, use expert advisors, copy trades, trade from mobile apps, etc. Ensure that the platforms integrated with the broker meet your trading requirements.
#3) Liquidity and Execution: The number of liquidity pools (which include banks, financial institutions, and other large-volume traders) also matters on a broker platform. Straight Through Processing or Non-Dealing Desk brokers are those that send client orders directly to liquidity providers are the best types.
#4) Customer Support: In addition to the usual phone, email, and chat support, ECN brokers also offer educational tools, trading guides, market analyses, research and research tools, webinars and trading events, relationship managers, technical support for instance, and other type of support.
#5) Regulation and Security: Most of the reputable ECN brokers are regulated in multiple jurisdictions including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the United States Commodity Futures Trading Commission (CFTC).
Frequently Asked Questions
Trading with an ECN broker offers some of the lowest trading spreads, as well as other benefits such as price transparency, trader anonymity, deep liquidity, minimal price slippage, and it ensures little or no bias in offering broker services. Traders also get high execution speeds among other advantages.
The deposit minimums across ECN brokers that we have reviewed range from $0 to $100 mainly but in some cases $500 depending on the type of account you want to open with the broker. For instance, the minimums for RoboForex, Pepperstone, FXTM, FP Markets, and BlackBull Markets, our top 5 rated ECN brokers, range between $0 to $500.
ECN forex is forex based on a system that automatically and directly matches sell and buy orders by forwarding client orders directly to liquidity providers without the broker’s price interventions through an in-house dealing desk. ECN forex brokers offer trading of Forex pairs at very low spreads because they do not themselves increase the spreads. However, they charge a commission per trade.
Each ECN trade incurs a commission or broker fees. In most cases and when adding the ECN commissions, the total trading cost happens to be higher than non-ECN trading in most cases, except that many brokers now offer trading rebates on the ECN spreads and commissions, which is advantageous for high-volume traders. Trading with some ECN brokers requires higher deposit minimums.
MT5 and MT4 are trading terminals, not brokers. They do not offer markets on which you can trade and they do not take deposits as brokers. You can use it the same way as third-party apps on which you can trade forex, CFDs, options, and other markets.
You will require a broker account and then connect the account with the MT4 or MT5 platform and start trading. 90 percent of forex brokers integrate with the MT4 which is the most popular trading platform.
An ECN forex broker uses Electronic Communication Network technology and tools to provide their clients with direct access to interbank-level forex markets without implementing extra spreads through in-house dealing desks. The spreads are therefore at minimum and there is the benefit of low-to-no price slippage.
ECN brokers make it possible for individuals to trade forex with ECN accounts given the low deposit minimums. Nevertheless, their offerings such as the trading rebates on huge volume traders, make the services very favourable for other brokers, banks, and corporate clients who also want to offer forex to their clients.
Conclusion
ECN brokers can be ranked based on commissions and fees since all of them offer very low trading spreads. Besides commissions charged, there are other factors that are of great importance to traders.
These include platform tools supported and integrated, extra offers such as VPS, bonuses, trading rebates, copy trading, and technical and trading support to clients. We also considered, in this tutorial, other factors such as leverage and minimum deposits when ranking ECN brokers.
Low deposit minimums, trading rebates, trader bonuses, low commissions, and support for diverse trading tools make Roboforex, Pepperstone, FXTM, FP Markets, and BlackBull rank the best in our report.
- Total ECN Forex Brokers Listed for Review: 30
- Top ECN Forex Brokers Shortlisted: 8
- Time Spent in Reviewing: 2 days
Further Reading => List of the BEST Forex Brokers in the UK