There are many brokers out there that claim that they are ECN Brokers but only a handful can really be classified as a true Forex ECN Broker. We know of some traders who prefer not to use ECN because of the commission charges but in truth, we rather pay commission than to have wider spreads. Wider spreads fluctuates and that can kill a winning trade in some instances.
Two types of brokers exist in the Forex market, the ECN brokers and the Market Markers. ECN in full means Electronic Communications Network. An ECN broker thus allows several different clients orders to directly interact between each other. ECN account is thus the type of account that such Forex brokers provides their customers for daily trading activities. The kind of direct interaction between different orders is additional and is very beneficial to traders. The Forex broker using the ECN network is able to provide with a special marketplace for trading. This marketplace thus allows different traders to directly trade against each other.
Here are some clear Advantages in using a True Forex ECN Broker
Security and Privacy
Privacy and safety of Forex trades is the foremost benefit of using ECN accounts. The Forex market has so many players and every person needs to enjoy utmost privacy and security. It is very possible to maintain high level of privacy and safety because the brokers are only acting as middlemen in the market but not market makers. So when a trader makes trade on an ECN network, he remains very secure and his trades can neither be distinguished nor traced by others in the market.
Another benefit of holding this type of account is the continuity of the trade which is enjoyed by the traders. Because of the tight spreads, a trader does not require high level of skills to breakeven. Using ECN account allows you trade continuously during news and events. We all know that continuous trading potentially increase the price volatility. This gives the trade opportunity to benefit from the price volatility thus becoming more profitable.
Super Fast Execution Speed
When using ECN account, the trader enjoys the benefit of an enhanced execution of trade orders. This is because you will not be trading with the broker but simply using their network to place your trade orders. This way, a true Forex ECN broker is by no means responsible for executing orders but rather matching them to other market participants. This is done as soon as possible allowing every trader to enjoyed super fast trade execution.
Disadvantages of using Forex ECN account
The high levels of fees and commissions charges are the greatest disadvantage of using ECN account. The design of ECN network is to charge commission on every trade. When these commissions are accumulated it becomes too expensive as more trades are executed every day. The profit level is thus lowered by the high commissions making it less preferred by many traders. In truth, we believe the commission charge just makes things transparent. While a normal Forex account might not have commission, the hidden charges are in the spreads. We will take transparency over hidden cost anytime anyday.
Why You Should Start Trading with a True Forex ECN Broker
ECN account is becoming one of the highly recommended platforms in the Forex market for all traders due to its interactive and great connectivity features. You have better opportunity to be highly profitable using this type of account even if you are new to the Forex market. This makes it very popular with starters and inexperienced traders in the market. This is considered to be the best type of account to hold if you want to be successful and enjoy trading Forex. Besides the benefits discussed above, using an ECN account allows you to enjoy many hassle free features offered by the brokers. Faster execution and transparency will serve you well in your trading journey.
2 Brokers that we use that has provided us unparalleled support is IC Markets and Tickmill. We absolutely love trading with them and perhaps if you use them, you might also love the way they treat their trading clients. By the way, both these brokers are offering a USD30 No-Deposit Bonus for us opening a verified live account with them. So here’s the signup link for IC Markets and Tickmill.
Claim Your $60 No Deposit Bonus Here
All you need is to have your live account verified!
Of course, you need to open a live account...
2 Brokers that we like A LOT!
USD30 from each Forex Broker Below.
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We use both of these brokers and proudly promote them!NOTE: Not all countries qualify for these bonuses. Terms and Condition Applies.
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