💼 ECN Forex Brokers
An ECN Forex Broker is a broker that uses an Electronic Communication Network (ECN) to give clients direct access to the orders of major participants in the global currency market.
What is Actually an ECN Forex Broker?
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ECN stands for Electronic Communication Network.
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ECN brokers provide traders with direct market access (DMA) to the Forex market.
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Unlike Market Makers or Dealing Desk brokers, ECN brokers have no dealing desk — they do not take the opposite side of client trades.
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Instead, all client orders are routed directly to liquidity providers, which are usually major commercial banks or financial institutions.
Two Main Types of ECN Brokers
There are two main categories of ECN brokers:
(1) Retail ECN brokers
(2) Institutional ECN brokers
Institutional ECN brokers offer better trading conditions than retail ECN brokers. Institutional clients include banks, hedge funds, large importers/exporters, and others.
Trading Costs When Trading with ECN Brokers
Since ECN brokers access price quotes from multiple liquidity providers, they can offer tighter spreads than the average retail market spreads.
ECN brokers make profits from:
(1) The spread between the ask and bid prices (usually 0.2 to 0.9 pips)
(2) Or by charging trading commissions (typically around $4-10 per lot)
Some ECN brokers offer zero spreads to their clients but compensate by charging higher trading commissions (usually $13–18 per lot).
ECN Brokers and Deposit Requirements
ECN Forex accounts generally require larger deposits than STP or Dealing Desk accounts. The minimum deposit to open an ECN account is usually $1,000, though some brokers require $5,000 or even $100,000.
Why Trade with an ECN Broker?
A major advantage of trading with an ECN Forex broker is that you are not trading against your broker, unlike with Dealing Desk brokers. Additionally, ECN brokers typically offer narrower spreads. Another benefit often provided by ECN brokers is anonymous trading.
Compare the Accounts of ECN Forex Brokers
In the table below, you can compare the trading terms of some popular ECN Forex brokers. Note that these brokers generally do not accept US traders.
| FOREX BROKER LIST |
BASIC INFO |
TRADING INFO |
ACCOUNT & BONUS |
VISIT & REVIEW |
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ROBOFOREX
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RoboForex was founded in 2009
Regulated by:
Headquarters: Belize |
ECN/STP BROKER
Min Spread: 1.3 Pip
Commissions: No
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Minimum Account Deposit:
Bonus:
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IC MARKETS (No Europe)
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IC Markets was founded in 2007
Regulated by:
Headquarters: Seychelles |
CFD BROKER
Min Spread: 0.4 Pip
Commissions: $7.0 per full traded lot
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Minimum Account Deposit:
VPS Promotion:
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(*) IC Markets does not allow traders from Europe and Brazil:
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