What is an ECN account?

Yet many neglect to consider one of the most important attributes: how their broker executes trades on their behalf. That’s why understanding the term “ECN account” is crucial. ECN stands for electronic communication network. These networks are the electronic exchanges where the big banks, brokers, and investment funds trade forex.

What is an ECN broker?

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. ECN brokers facilitate transactions that occur on electronic communication networks (ECNs).

Why do traders prefer ECN over standard accounts?

Many traders prefer ECN over standard accounts as you get liquidity through networks. What is the ECN account definition? In simple words, it is a computerized way of doing trading. Let’s see who benefits the most from it.

What is an IBAN number?

IBAN stands for International Bank Account Number. It converts your existing account number into an internationally standardized format. It contains details about the country, bank and local account number, hence, making it globally unique and recognizable.