ECN broker is a type of broker that is often considered to be a step-up for some traders. But how to choose the best ECN broker for you? Find out the answer in this article.
ECN stands for Electronic Communication Network, meaning it connects the market via the electronic network. An ECN broker is a Non-Dealing Desk type of broker. Instead of making their market and acting as the liquidity provider, they only provide access to the existing market.
An ECN broker would electronically find a trade match for the clients' orders and pass those orders to the liquidity providers. The network is specifically designed to match the buying and selling orders currently present on the table. When a specific order match is unavailable, prices reflect the highest bid and the lowest ask orders.
To understand ECN brokers, we will learn these four important things:
- The benefits of ECN brokers: How do they contribute to your trading profits?
- How to differentiate real and fake ECN brokers: Check the spreads, broker type, and slippage.
- Recommended ECN brokers that include IC Markets, FP Markets, Admirals, etc.
- Trading conditions in ECN brokers: Regulation, account type, trading platform, spreads, and commissions.
Now, let's get to the first key information about ECN brokers.
1. The Benefits of ECN Brokers
Since ECN brokers only provide access to the market and match the traders' orders, they cannot trade against their clients. Also, by combining price quotations from several market participants, ECN brokers can't artificially inflate the spread.
That is why, compared to other types of brokers, ECN brokers usually give lower spreads. Instead of making income from spreads, ECN brokers usually charge fixed commission fees for each transaction.
To sum up, here are the benefits of using an ECN broker:
- The first advantage of using an ECN broker is that it allows traders to instant trade or trade outside of the traditional forex trading hours, providing a mechanism for those who are not always available in front of the screen and actively involved during regular market hours. In other words, the ECN broker is suitable for traders who prefer higher flexibility and broader availability.
- The spreads are fewer than other brokers because they can't control bids like dealers. Although traders will be charged fixed commission fees per transaction, the value is mostly still reasonable, and it is possible to calculate the total amount of trading cost beforehand so traders can plan their trades accordingly.
- It allows traders to trade anonymously. For those who are concerned about their privacy, ECN brokers can provide the solution. This feature can be desirable for investors interested in more massive deals.
- Price transparency is reliable because all ECN brokers can access the same feed and trade at the specified prices provided. Several specific price histories are available, allowing traders to find and analyze a specific trend in the market. This system can also limit price manipulation, as current and past information is available for everyone.
2. How to Identify a Fake ECN Broker
As we already mentioned before, some brokers claim to be ECN brokers. At first glance, finding the difference between real and fake is difficult. But it is not impossible if you acknowledge the criteria of a true ECN broker. To find out which broker is the true ECN, there are a few aspects that you must check:
- Spread
If a broker offers a fixed spread, it is most likely to be a fake ECN broker because the real one will only offer a variable spread as they can't control the spread of the market. Instead, ECN brokers gain money from the traders by charging commission fees per transaction. - Dealing Desk or Non-Dealing Desk?
All ECN brokers are Non-Dealing Desk brokers. Any mention of a dealing desk condition on the company's website or client reviews shows that the broker is not a trustworthy ECN broker. Opening an account (either a real or demo account) could help you observe the difference in pips offered during news releases. There will be no extreme difference if the broker is an ECN broker. - Slippage
Positive and negative slippages should happen fairly. An ECN broker should not control the slippage and always make it negative for clients and benefit the broker. So, if you trade during high volatility and the slippages happen quite unfairly, it's better not to regard the broker as a true ECN broker.
3. Recommended ECN Forex Brokers
Once you find a broker matching an ECN broker's criteria, don't get tempted to agree with the terms and conditions before you understand them completely. Compare with a few other ECN brokers to determine your trading strategies' best features and specifications. We've got you covered in the area. Here is the list of several ECN brokers for you to consider.
IC Markets
IC Markets acts as the provider of the products it offers. This brokerage firm is a forex provider following the ECN pricing model. They source their pricing from external liquidity providers who are not affiliated with them, ensuring transparency and fairness.
As a result, there is no intervention from a dealing desk. IC Markets stands out for its ECN accounts, which offer traders tight spreads, quick order execution, and ample liquidity.
IC Markets further enhances the trading experience by providing access to popular platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), offering a comprehensive set of tools, including advanced charting options, various order types, and customizable indicators. Deposit methods include Qiwi, credit cards, and many more.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
Admirals
Admiral Markets claims to be ECN brokers. As an ECN broker, Admiral Markets provides traders with direct access to liquidity providers, allowing for fast and transparent order execution.
ECN accounts offer competitive pricing with tight spreads and deep liquidity from multiple liquidity providers. Traders using Admiral Markets' ECN accounts can benefit from a transparent trading environment, where orders are executed directly in the market without interference or dealing desk intervention.
This enables traders to access accurate market pricing and potentially lower trading costs.
FP Markets
As an ECN broker, FP Markets prioritizes offering competitive pricing, deep liquidity, and ultra-fast execution to meet the needs of traders. FP Markets ensures transparent pricing, tight spreads, and minimal slippage by streaming price feeds directly from liquidity providers and utilizing the Electronic Communication Network (ECN) technology.
Through connectivity to multiple liquidity providers, the broker can provide highly competitive spreads, low-latency execution, and efficient order matching. This benefits traders, especially those using scalping strategies with Expert Advisors (EAs), as it further enhances the speed of execution.
Keeping positions open overnight won't result in the overnight/rollover fee reducing your earnings, so you don't have to worry about it. FP Markets offers the most competitive swap rates in the industry by introducing Swaps Points in the form of a live swap rates list on the MT4 and MT5 platforms. Here are some examples:
- ACWI: -5.00 for long positions and -2.50 for short positions.
- ADAUSD: -20.00 for long positions and -20.00 for short positions.
- AGG: -5.00 for long positions and -2.50 for short positions.
Dukascopy
Dukascopy is a well-established ECN broker, granting traders direct access to the interbank market for deep liquidity and competitive pricing. Through the ECN model, traders can enjoy tight spreads and transparent pricing, with orders executed directly in the market, free from dealing desk intervention.
By aggregating liquidity from multiple providers, Dukascopy ensures fast execution and optimal order filling at the most favorable prices, fostering efficient order matching while minimizing slippage risks.
Founded in 2004, Geneva-based Dukascopy Bank offers trading spots, including forex, metals, binary options, CFDs on bonds, commodities, indices, stocks, ETFs, and cryptocurrencies through the same platforms. After the development of the Swiss FX Marketplace, Dukascopy acquired a Swiss banking license in 2010 and launched Dukascopy Bank.
They try to provide trading services based on the following main principles: equal trading rights and a transparent pricing environment. Dukascopy is licensed in Switzerland through the Swiss Financial Market Supervisory Authority (FINMA) and in the EU through the Financial and Capital Market Commission of Latvia (FCMC).
This ECN-Marketplace represents the advanced generation of liquidity aggregators in the industry. Dukascopy has a unique technology to hedge instantly any clients' trades directly with other liquidity providers. The company is currently connected to Bank of America, Commerzbank, Nomura, Barclays, Currenex, Deutsche Bank, JP Morgan, and other liquidity providers.
All trades are usually executed in milliseconds. Dukascopy offers the deepest source of liquidity in the industry resulting in tight spreads.
Opening an account in Dukascopy would allow you to trade in its proprietary platform called JForex, which can be accessed by desktop and mobile. In desktop experience, traders can get several features including hundreds of indicators, advanced charting, historical testing, real-time news, and embedded customer support.
On the other hand, customization is weak as there are no pop-out charts or built-in complex desktops and watchlists. The web version of the Java-based software triggers security warnings in Chrome and other browsers, while JForex mobile versions allow easy syncing between platforms.
Not only JForex, trading in Dukascopy also offers access to MetaTrader 4 platform that is appreciated by many traders around the world. It has main features such as expert advisors and customizable templates.
Furthermore, Dukascopy provides two types of accounts including Mobile Current Account (MCA) and Standard Current Account (SCA). For private use, traders can choose both account types. But for business use, SCA is more suitable. The minimum acceptable order size is 1,000 units of the primary currency.
Depending on Dukascopy services used by the clients, commissions may apply. Commissions and spreads are calculated through a declining tier system, with clients categorized by monthly trading volume and net deposit.
Dukascopy has won several awards including Best Forex Trading Apps 2019, Best Platform & Tools 2018, and Best Mobile Trading. Besides, the company also gets awarded as Best Forex Bank 2018 by China (Shenzhen) Forex Expo, Best Forex ECN/STP Broker 2018 by London Forex Show, and Best Provider of Liquidity 2017 by IAFT Awards.
Traders will get multiple ways of funding account, including credit and debit cards, wire transfers, and bank transfers. Each client is protected up to CHF100,000 against the insolvency risk of Dukascopy Bank. However, Dukascopy charges a $20 fee in addition to possible bank or credit card charges for withdrawals.
Dukascopy's clients have the opportunity to get more profit through bonus programs, including Equity Bonus, Discount Program, Experience Sharing, and Anniversary Bonus.
The minimal deposit size of the account with Dukascopy Europe is $100, while the minimum for Dukascopy Bank SA is $1,000. Deposits accepted in 23 currencies. Several additional features are available depending on the clients' profile and the type of account.
Dukascopy Bank provides a wide range of free financial information and other attractive resources through its website, Dukascopy TV online television, Freeserv products, and its active online Dukascopy community that hosts over 130,000 members. Based on the review of their clients, product sections and trading platforms point to limited "how-to" articles and videos about forex, CFD, indices, and cryptocurrency trading venues.
The members of Dukascopy may exchange in several languages on trading experiences, market views, trading strategies, may win prizes in various contests, and freely communicate through advanced and secure chat and video conference systems developed by Dukascopy.
The company provides a 24/6 support team through phone and live chat. Traders also can send questions via email. They maintain active social media portals as well as a dedicated support forum for JForex and automated trading.
Overall, Dukascopy is suitable for the highly experienced and high-volume traders. Higher than average trading costs could undermine beginner and retail accounts, who may have to look elsewhere for building skill levels due to weak educational resources.
FXTM
FXTM (ForexTime) is a renowned forex broker that employs a hybrid model, blending features of both market-making and ECN execution. FXTM offers ECN-like accounts, such as the "ECN" and "ECN Zero" accounts, designed to offer traders tighter spreads and faster execution by connecting them to liquidity providers.
It's essential to understand that FXTM may still act as a counterparty in specific trades, especially when direct liquidity matches are unavailable. It is advisable to review the specific account types and contact FXTM's customer support for accurate and up-to-date information on their execution model and trading conditions.
FXTM was initially launched in 2011 with a unique vision to provide unparalleled superior trading conditions. Opening an account in FXTM would also bring about access to advanced education and sophisticated trading tools in the forex industry.
Now, FXTM is registered under the Financial Conduct Authority of the UK with the number 600475. The company is also regulated by the Cyprus Securities and Exchange Commission with CIF license number 185/12, and is licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614
FXTM has 1 million registered accounts with more traders joining every day. The company continually tries to improve their performance and have got many awards such as Best Trading Experience 2019 by World Finance Awards, Best Online Forex Trading Company Nigeria 2018 by International Finance Awards, Reputable Investor Education Forex Broker Award 2018 by Hexun.com, Forex Brand Of The Year China 2018 by Fxeye.Com, and many more.
As a responsible broker, they determine leverage (expressed as a ratio of transaction size relative to trader's buying power) according to the trader's level of knowledge and experience in trading, which is evaluated by the Appropriateness Assessment. The company also enables trading with leverage up to 1:1000.
As for spreads, FXTM offers low spreads starting from 0.1 pip, so traders can withdraw profits at the start of trading. The company, which has headquarters in several countries, uses No Dealing Desk (NDD) technology and partners with credible liquidity providers to provide the best bid and ask prices.
For beginners, there is an automatic trading facility called algorithmic trading provided. When trading in FXTM, traders can develop their trading strategy or adopt other traders' strategies. Furthermore, the strategy is applied to automated trading systems, such as Expert Advisors. The purpose of this system is traders do not have to worry about losing opportunities while not observing the market so that profits can still be earned.
Three types of ECN accounts use the MT4 and MT5 trading platforms. There are also mobile and Tablet Apps trading platforms. Aside of providing many account variants, FXTM goes above and beyond to ensure that their client receives excellent support that they deserve, making their trading experience optimal and user-friendly.
FXTM also provides a diverse range of products. In addition to over 50 currency pairs, they provide gold, silver, CFD on commodity futures (oil), CFD on ETFs, and indices.
Education about the basic concepts of the forex industry is also accessible in this broker. Traders can read all the concepts provided in the form of e-books, video tutorials, articles, webinars, and forex seminars. There are 17 languages provided on the FXTM website to make it easier for traders to learn about forex.
Traders are also given various choices for payment methods, including Credit Cards (Visa, Mastercard, Maestro) and E-Wallet (Neteller, Skrill, Western Union). For withdrawing funds, traders are not charged a fee with a length of 2 hours to 2 days. Traders can live chat to ask further questions and contact the admin via email. There is also a question and answer page about forex trading on FXTM.
FXOpen
FXOpen ECN is an electronic communication network that connects participants in the Forex market, offering the best prices, low spreads, and seamless order execution. There is no conflict of interest with no dealing desk, allowing for various trading styles without limitations.
FXOpen ECN accounts have affordable requirements, starting from a $100 deposit, 0.01 lot size, and commissions from 1.5 USD per standard lot. Two account types, Gross and Net, are available on the TickTrader platform to accommodate different trading strategies.
FXOpen started its operation as an online trading provider for retail clients since 2005. The company was founded by a group of traders with a mission to provide services that refer to the interests of traders. FXOpen claimed to be one of the firsts to offer ECN trading via MetaTrader 4 (MT4). With FXOpen's unique proprietary price aggregating technology, their clients can benefit from the industry's most competitive spreads (from 0 pips) and low trading commissions.
In 2006, FXOpen also became the first broker to offer a micro account and a swap-free account. After that, they continue to be the pioneers of several new and high-tech services, including the first Crypto account that can provide trading facilities on 24 Cryptocurrency pairs such as Bitcoin, Litecoin, and Ethereum.
Furthermore, the company provides One Click Trading and Level 2 MT4 plug-ins, enabling traders to place trades with just one click of the mouse. Traders do not need to worry about trading security at FXOpen. They have registered in Nevis, the UK FCA, and ASIC Australia.
A variety of trading accounts are provided such as STP, Micro, ECN, and free unlimited demo accounts. The minimum deposit for each account depends on the account type; USD1 in Micro Account, USD10 in STP and Crypto Accounts, and USD100 in ECN Accounts. As for leverage, FXOpen offers up to 1:3 (for Crypto Accounts), and up to 1:500 (for Micro, STP, and ECN Accounts).
Besides, traders can enhance their trading capabilities with Myfxbook and Zulutrade automated trading systems. Both of these services allow anyone to copy the transactions of experienced traders. Thus, traders can replicate the results of professional traders' strategies.
The FXOpen PAMM Service allows copying trades from a Master account to one or more than one Follower account and automates the distribution of profits and losses. The Master operates personal capital through a PAMM account, and his trading strategy is replicated to the Follower's capital. The owner of the Follower account can view and analyze the performance of the PAMM account with the help of advanced analytics. There are 3 PAMM accounts in FXOpen, namely STP, ECN, and Crypto PAMM.
On ECN accounts, traders will get direct price quotes from leading liquidity providers, including Dresdner, SG Paris, Standard Chartered, Barclays Capital, Bank of America, CRNX, JP Morgan, Morgan Stanley, Deutsche Bank AG, RBS, CITI, and UBS. This is one of the reasons why FXOpen's ECN account has become a trader favorite.
After seeing the various advantages offered by FXOpen, traders can easily register an account, simply by filling out the form in the registration menu on the FXOpen website. Traders will be asked to verify documents in advance if the trader will make a deposit or withdrawal of funds. Based on traders' experience and information since FXOpen was founded, there have not been any major complaints about payments (depositing or withdrawing funds) from clients.
Once registered with the FXOpen broker, traders also have the opportunity to get other benefits. One example is the FXOpen cashback program for the first 90 days from registration as a new client. The minimum cashback is USD5 and the maximum is USD1,000.
Furthermore, free VPS is available for ECN, STP, and Crypto account holders. Traders can use FXOpen VPS without any fees for 1 month if they can maintain equity of USD5,000 at the end of the month or trade with a trading volume of USD10,000,000 per month. The advantages of VPS on FXOpen are excellent accessibility, flexibility, and speed.
Trading on FXOpen is made easier because traders can add insight into trading by entering contests. FXOpen Broker offers weekly and monthly trading contests on demo accounts through the ForexCup.com site. Traders can join competitions that are free of charge to hone their skills. If a trader wants a bigger challenge, there is also a trading contest on a real account.
The company also offers Forex partnership programs to traders, Forex brokers, and website owners who publish information about fiat and crypto-currency trading. There are 3 types of partnership levels, including Forex IB (Forex Agent) that attracts new clients to FXOpen using a referral (affiliate) link, Forex Rebate, and individual partnership conditions.
In Conclusion, FXOpen is a well-rounded forex brokerage for traders with a desire to try various trading instruments, a trading environment in ECN account, low minimum deposits, the best cryptocurrency trading condition, as well as interesting trading features like PAMM and demo contests.
Pepperstone
Pepperstone operates as an ECN broker, adhering to a no-dealing desk policy, although it may not fall under the category of a "true ECN broker." As the issuer of their products, Pepperstone maintains control over the systems to establish a direct relationship with their clients.
Unlike other brokers, Pepperstone obtains pricing from external Liquidity Providers through an electronic communication network, ensuring their clients receive pricing without interference from a dealing desk.
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone.
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. You can start trading with a minimum lot of 0.01 (micro) and 1:400 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
ThinkMarkets
ThinkMarkets prides itself on its robust trading infrastructure, powered by twin Equinix trading servers in Hong Kong and London, enabling lightning-fast transaction execution in milliseconds. With advanced technology, ThinkMarkets ensures an impressive uptime of 99.99 percent and achieves rapid execution speeds, making it an ideal choice for automated trading.
The broker offers two main trading accounts: the Standard Account, providing broader spread betting options, and the ThinkZero Account, an ECN account with tighter spreads and transaction fees. Both are available as demo and Islamic accounts, catering to various trading preferences. Additionally, ThinkMarkets offers a specialized Joint Account specifically designed to accommodate two or more professional traders.
As a multi-asset online brokerage, ThinkMarkets present a wide range of trading assets starting from Forex to Precious Metals, Commodities, Indices, Shares, and Cryptocurrencies. The Australian-based broker is established in 2010 and has since opened additional headquarters in London and regional offices throughout Asia-Pacific, Middle East, North Africa, Europe, and South America.
Along with its history operation, ThinkMarkets has been awarded and recognized many times in various aspects. Most recently, they won the Best Value Broker in Asia at the 2020 Global Forex Awards.
Average FX spreads for traders opening an account in ThinkMarkets start from 1.2 pips for the standard account, while ThinkZero provides the best trading experience with 0.1 pips spread. Still, traders may need to consider that ThinkZero applies commission from $3.5 per side for every 1000,000 trading volumes.
As a global online brokerage, ThinkMarkets operates under various financial regulatory institutions. For example, ThinkMarkets Australia is managed by TF Global Markets (Aust) Limited and is licensed by the Australian Financial Services as well as the Australian Securities and Investment Commission (ASIC) with ABN: 69158361561. ThinkMarkets UK is registered under the Financial Conduct Authority (FCA) by the company name of TF Global Markets (UK) Limited (number: 09042646).
ThinkMarkets consistently try to improve their trading environments with various advanced products. Automatic trading fans are provided with free VPS Hosting, while passionate traders who'd like to experience beyond MetaQuote platforms can try ThinkMarkets' proprietary platform called ThinkTrader.
The trading platform is available on 3 different interfaces specifically designed for Web Desktop, Tablet, and Mobile displays. Furthermore, customized tools such as 80+ drawing tools and more than 125 indicators for technical analysis accessible even through Mobile screens would certainly provide a brand new trading on-the-go experience.
As far as market updates go, trading in ThinkMarkets would be accompanied with news from FX Wire Pro that is known for its strict policy toward upholding objective journalism and delivering critical, trusted information in real-time. Information segments covered by FX Wire Pro include Economic Commentary, Technical-level Reports, Currency and Commodities, Central Bank Bulletins, Energies and metals, together with Event-driven Flashes.
For payment methods, ThinkMarkets offer the gateway via bank transfer, credit card (Visa and MasterCard), Skrill, Neteller, POLi internet banking, BPay, and Bitcoin wallet.
All in all, it is safe to say that for a company that started business since 2010, ThinkMarkets is an accomplished broker in terms of legal standing and innovation in trading technology. As an additional safety assurance for traders, this broker underlines its commitment to provide a $1 million insurance protection program which is made possible by ThinkMarkets' insurance policy with Lloyd's of London that protects clients' funds for up to $1 million in the unlikely event of insolvency.
FBS
FBS is a global forex and CFD broker that offers ECN trading accounts. ECN stands for Electronic Communication Network, a type of trading that allows traders to trade directly with liquidity providers. This means no intermediary, such as a market maker, is involved in the trade.
FBS ECN accounts present several advantages compared to traditional forex accounts, such as lower spreads, faster execution speeds due to the absence of intermediaries, and increased liquidity, which translates to a more accessible trading environment with a broader pool of buyers and sellers.
Since 2009, the action of FBS Holding Inc. or known as FBS in the world of forex trading has been recognized by various international institutions. With clients reaching 14 million as of 2019, FBS has received the title of Most Transparent Forex Broker 2018, Best Investor Education 2017, Best Customer Service Broker Asia 2016, IB FX Program, and many others.
FBS is regulated by FSC Belize and CySEC Cyprus. This broker has been trusted by millions of traders and 370 thousand partners from various countries. Based on their data, FBS garners about 7,000 new traders and partner accounts every day. And, 80% of the clients stay in the FBS for a long time. No wonder the broker is growing rapidly due to the incredible growth in the number of clients.
Trading products offered by FBS range from forex, CFD, precious metal, and stock. For forex trading, CySEC-regulated FBS offers leverage up to 1:30 on Cent and Standard Accounts. Clients who want to try higher leverage than that can alternatively register an account under FBS Belize.
FBS spread begins from 0.5 pips for Pro account type and from 0.7 pips for Standard and Cent accounts. On a standard account, volume orders can be made from 0.01 to 500 lots. Therefore, this account is recommended for experienced traders.
Whereas on Cent Accounts, volume orders can be carried out with a maximum of 500 cent lots or the equivalent of 5 standard lots. Cent Accounts involve a different level of risk. FBS recommends Cent Accounts for beginner traders. All account types support the following trading instruments: 36 Forex pairs, 8 metals, 3 energies, 11 indices, 127 stocks, 5 crypto pairs.
Before plunging into the real forex market, traders can practice with FBS Demo Account which consists of two types, i.e Standard and Cent.
FBS uses the MetaTrader 4 and MetaTrader 5 platforms. They offer them on Windows and Mac as well as Android and iOS mobile. These platforms provide a trading experience at traders' fingertips, allowing traders to progress as a trader anywhere at any time.
MetaTrader platforms also have a variety of mainstay features, including the possibility to create, buy, and use expert advisors (EA) and scripts, One-click trading and embedded news, technical analysis tools, the possibility to copy deals from other traders, hedging positions, and VPS service support.
Another advantage provided by FBS is a deposit bonus of 100% for clients who fulfill certain requirements. The process of FSCing and withdrawing funds can be run easily and quickly. Based on clients' testimonies, each process usually takes no more than 3-4 hours, except on holidays.
Traders also have the opportunity to develop a side business when trading with FBS, namely as an Introducing Broker (IB) or Affiliate. The FBS partnership system provides partner commissions that are already in 3 level positions. Only by introducing new clients to FBS according to certain procedures, traders can earn extra income.
Traders will also get trading education experience at FBS. They have prepared a comprehensive forex course. The course consists of 4 levels: beginner, elementary, intermediate, and experienced. Traders can take courses that will turn them from newbies to professionals. All materials are well-structured. Besides, FBS provides various forex analyzes, webinars, forex news, and daily market analysis that can be accessed easily on their site.
Traders can access the FBS website with many language choices. Of course, this will increasingly provide comfort for traders. Available languages include English, Italian, French, Portuguese, Indonesian, Spanish, and others. Live chat support is also provided 24 hours 7 days a week.
In conclusion, FBS is a widely known broker among retail traders around the world. It continually grows to become a preferred broker because of flexible trading conditions that enable its clients to trade with various instruments, low deposit, and other trading advantages.
4. Common Trading Conditions in ECN Brokers
When choosing the best ECN broker, remember that an actual ECN broker does not profit from the spread but charges a commission fee per lot traded. Meanwhile, the spread on ECN accounts will always fluctuate according to market conditions, in line with the liquidity provider's price connected to the broker.
The next important factor is a matter of regulation. Those who deserve to be labeled the best ECN broker must be a broker legally regulated by a credible regulator. Prominent regulators usually have stricter rules and can even ensure the broker's safety.
Other than that, it should be noted that, usually, forex brokers provide an ECN account as an option alongside several other accounts. This means a broker can offer account options with instant execution (where it acts as a dealer) alongside another option with market execution (ECN-mode).
So, before you register with a broker, pay close attention to what type of account you choose because the trading conditions in each account can be very different.
Lastly, consider the trading platform that the broker uses. Some traders think the best true ECN broker shouldn't use MetaTrader 4 because brokers can intervene on the platform. However, MetaTrader 4 is still a favorite among traders, so many ECN brokers still offer MetaTrader 4 as their standard platform while providing other platforms alternatively.
2 Comments
Jan 23 2024
The article suggests that a broker is considered a fake ECN broker if it provides a fixed spread, as authentic ECN brokers typically offer a variable spread due to their inability to manipulate market spreads. I'm curious to learn more about spreads, as they are crucial fees to monitor. In my understanding, a fixed spread provides clarity with consistent fees, while a floating spread introduces uncertainty about the incurred costs. In the context of ECN, I'm interested in understanding why brokers cannot control the spread of the market, as implied in the article.
Jan 25 2024
Greetings! As mentioned in the article, the term "fake ECN broker" is used to describe a broker offering a fixed spread. The article suggests that a genuine ECN (Electronic Communication Network) broker typically provides a variable spread because they lack control over market spreads. The inquiry about spreads arises from the understanding that it's a critical factor in assessing fees. Fixed spreads imply consistent fees, offering transparency, while floating spreads introduce uncertainty about the incurred costs.
Regarding ECN brokers, the article implies that they cannot control market spreads because they operate within an electronic network that aggregates prices from various liquidity providers. The absence of control over spreads ensures a more genuine reflection of market conditions, as prices are determined by the interplay of supply and demand. This lack of influence over spreads aligns with the core principle of ECN brokers to offer traders direct access to the interbank forex market without interference or manipulation. Hope you can understand that!