What is ECN & what makes a good ECN broker?

What is ECN and what makes a good ECN broker? ECN stands for Electronic Communication Network. An ECN broker is electronically connected to the network of banks, hedge funds and investment corporations which are interconnected in a form of hub.

Do ECN brokers charge commission?

ECN brokers have very tight spread since they work with many liquidity providers, and sometimes, their spreads can be zero. Well, then you only have to pay attention to the commission. Due to the low spread rate, brokers have to charge commission for ECN accounts as their main income. And I know the brokers from my list charge the least.

What are the advantages of ECN account?

The only advantage of ECN account is that it has very low trading cost and you get to trade in the real market. Sometimes the spread can be as low as zero, so experts want to take advantage of this to make more money. Here are the best ECN brokers in my opinion: What is ECN broker? ECN stands for Electronic Communication Network.

Why do forex traders use ECN?

When you trade forex using ECN, you buy and sell directly from the connected network of banks and financial institutions, and they provide you the liquidity. Many forex traders prefer ECN routing over another popular forex routing model, called market maker.