ECN trading has been a milestone in the modern forex industry due to the transparency, ease and advantages that it entails. With direct access to liquidity providers and automatic matching and execution of orders, it has become the way forward for a vast majority of forex traders around the world. What does ECN stand for? Like much of the forex market mechanisms today, an ECN is an automated component of trading, since it connects traders to liquidity providers such as banks, brokerages and other traders round the world and eliminates the role of the traditional middleman.
Traders get access to different prices from a variety of market participants directly on their trading platforms and are shown the best bid and ask prices available in the market.
The matching and execution of orders ensues automatically and in this way the trader can always be sure that the broker they are using does not have any dealing desk involvement against them or the trade is processed on an STP straight through process basis. For each transaction, traders are charged a small fee by the broker. Investors can follow your trading strategy, allowing you to potentially earn more. Since a client's total trading volume is calculated on a monthly basis, at the beginning of each month commissions will be charged at the highest level and should the trading volumes increase during the month it will automatically be reduced to reflect the volumes traded.
For residents of Poland, the maximum leverage is 1: Add the following FXTM number to your contact list: Find FXTM by searching on the top search bar. Trading CFDs is risky and can result in the loss of your invested capital. Please ensure that you understand the risks involved and do not invest more than you can afford to lose.
Read full Risk Disclosure. Your capital is at risk. Log in Register Register. What is ECN Trading: Full transparency since the broker directly connects your orders to other market participants NDD No Dealing Desk technology ensures that there will be no re-quotes Very low or even no spreads during times of high market volatility The best bid and ask prices available since a variety of market participants are involved The high price volatility makes for a great environment for scalping Trading is facilitated not only during, but outside market hours.
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