ECN trading mostly comes with a high commission fee. Luckily there are brokers with low commissions on their ECN accounts. Where can you find them?
Looking for the best trading conditions is a must if you want to trade safely. Finding the best broker to fulfill all your needs might not be easy. That being said, trading in an ECN account might be able to give you want you are looking for.
Using ECN brokers has plenty of advantages compared to regular STP brokers. For example, they might allow you to trade outside of traditional trading hours.
This offers great flexibility for part-time traders who work full-time and can't actively trade during normal market hours.
It also avoids wider spreads that are common among traditional brokers. ECN can provide a level of anonymity to those who desire it, so privacy is fully protected. All ECN brokers have access to the exact same feed and trade the exact price, which means price transparency is no joke.
Brokers providing such an account are also said to be capable of offering clients the best price quotations in exchange for paying a commission fee.
So, here are the lists of brokers with low commission ECN Accounts that will be discussed further:
- IC Markets: commission only around $3.50 per lot payable per side.
- FXTM: offers an average of $0.40 - $2 volume-based commission.
- Vantage Markets: offers a commission of $2 only.
- FXOpen: commission fee is $1.5 per standard lot.
- ThinkMarkets: only $3.5 commission per side per lot.
- Exness: This broker charges a commission of up to 3.5 USD per lot.
Check the brokers' complete offerings, benefits, and facilities in this article below.
Brokers with Low Commission ECN Accounts
To avoid getting too much cost for every single trade, there are low-commission ECN accounts that might be ideal for you. What are they?
1. IC Markets
IC Markets provides one of the best low commissions ECN accounts in the market right now. It is one of the best trading companies in Australia that aims to offer trading solutions for active day traders and scalpers alike.
This brokerage ensures low latency connectivity and superior liquidity in order to give the best trading conditions for all clients. IC Markets uses the ECN pricing model from external unrelated liquidity providers. This means clients will get the best prices with no dealing desk interventions.
This ASIC-regulated broker has three accounts types, but the best one is said to be their raw spread account. Through this feature, they present some of the lowest possible spreads available.
Their commissions' fee is quite competitive, only around $3.50 per lot payable per side. It is accessible throughout multiple platforms including cTrader.
You can also trade CFD assets here, which is an efficient way of diversifying your existing portfolio or hedging your trades. IC Markets offers flexible contract sizes, allowing you to customize your trading according to your risk management criteria.
That being said, always be mindful of how much capital you can risk and make sure you have the best strategy beforehand.
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.
2. FXTM
Another low commission ECN broker you should consider is FXTM. The company promises no re-quotes for all clients.
There are plenty of benefits from using an ECN account in FXTM, and one of them is floating leverage up to 1:500. FXTM also provides other supporting features like spread starting from 0, low minimum deposits, copy trading platform, and of course different trading platforms (MT4 and MT5 available on PC, iOS, Android, and Windows Mobile devices).
More importantly, their most recommended account offers an ECN trading condition with zero minimum spreads and an average of $0.40 - $2 volume-based commission.
Another reason to consider FXTM is its new trading app. The FXTM Trader is an investment app created to revolutionize your trading experience.
Through this app, you can open and close positions in seconds, access live currency rates, manage your trading accounts, and stay one step ahead of the markets.
This is a great app for mobile traders and busy traders. Right now, FXTM Trader is available in both AppStore and Google PlayStore.
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.
3. Vantage Markets
Vantage Markets has two types of ECN account for their clients, one being a raw ECN account and the other called a pro ECN account.
So, what are the differences? Both accounts can be accessed from MT4 and MT5 trading platforms, both also have 500: 1 leverage as well as a wide range of instruments to trade with.
The difference starts with minimum deposits. Raw ECN account only requires $500 to start trading, while pro-ECN requires a $20,000 starting capital.
Raw ECN costs $3 per lot per side, while pro-ECN only costs $2. Despite the differences, both accounts still offer a fairly competitive commission fee compared to most ECN accounts.
Vantage Markets was founded in 2009 in Australia. It is the brand name of the Vantage International Group which is regulated by the Cayman Islands Monetary Authority (CIMA). Before it is known as Vantage Markets as today, they used to be MXT Global in 2009 and Vantage Markets Pty LTD in 2015. The Vantage Group also operates other companies such as Vantage Global Prime, which is regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA).
According to the broker's website, Vantage Markets adds further protection to clients by segregating client funds and holding their funds with Australia's National Australia Bank (NAB). NAB is one of the 4 largest financial institutions in Australia as well as the Top 20 safest banks in the world. Thus, clients don't need to worry about saving their funds at Vantage Markets.
With Vantage Markets, traders will experience super-fast trade execution, as well as interbank grade and RAW ECN spreads. When combined, these elements offer clients a true institutional trading experience, across a wide range of trading instruments. They also offer services designed for both beginners and professionals with access to Forex ECN trading, as well as CFD trading on Indices, Commodities, and U.S & Hong Kong Shares. Those instruments are available to trade on MetaTrader 4, MetaTrader 5, MetaTrader WebTrader, CHARTS by TradingView, Mobile Apps, either for Mac, PC, iOS, or Android. There are also social trading platforms such as MyFXbook and Zulutrade.
By registering in Vantage Markets, traders will have access to an impressive range of educational materials and research tools including MT4 SmartTrader Tools, a wide variety of promotional trading offers and rebate programs, as well as access to accounts with up to 500:1 leverage. However, the leverage for ASIC and FCA clients is 30:1, and normally no promotion for AU and UK clients because of the compliance policy.
Vantage Markets provides research in the form of technical and fundamental analysis on its blog from in-house staff as well as guest writers. There is also an economic calendar powered by MQL5 from MetaQuotes. For clients who deposit at least $1,000, Vantage Markets offers a suite of plugins for MT4 branded as MT4 SmartTrader Tools, developed by FX Blue LLP.
As an authorized representative of Vantage Global Prime, the broker caters to retail traders under the Vantage Markets brand and offers access to the following instruments:
- 44 currency pairs, which are the most liquid global forex market currencies.
- 16 most liquid Indices from across the globe, including the S&P 500, DAX, FTSE, DJ30, and more.
- 16 commodities, either soft commodities or precious metals.
- 5 indices futures such as DJ30ft, DAX4ft, and NAS100ft.
- 600+ US, UK, and HK shares from large companies, such as Apple, Google, Coca-Cola, and big corporations listed on the Hong Kong Stock Exchange.
Clients can open accounts in Vantage Markets and deposit funds in 8 base currencies: USD, GBP, CAD, AUD, EUR, SGD, NZD, HKD, and JPY. They also provide clients with convenient deposit and withdrawal methods through local and international bank transfers, credit/debit cards, and e-payment.
Overall, Vantage Markets is valued to be proper for retail traders with small deposits who like the max leverage thresholds. In terms of pricing, the broker's commission-based Raw ECN account is the clear choice for cost-sensitive traders as it features a lower all-in cost compared to its Standard account offering.
4. FXOpen
FXOpen ECN account allows a unique electronic communication network that links different participants of the forex market, including banks, centralized exchanges, other brokers, and traders involved.
The brokerage promises the best price, spreads, and executions through its advanced price aggregating technology. Their no dealing desk system matches your order against an opposite order from another participant of the ECN to make sure they do not trade against you.
All trading styles are allowed, which means there are no limitations to scalping, news trading, and Expert Advisors. FXOpen's ECN account commission fee is $1.5 per standard lot.
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.
5. ThinkMarkets
ThinkMarkets is a great low-commission ECN broker with only $3.5 commission per side per lot. This brokerage increased its pool of liquidity providers in order to reduce trading costs for forex and metals.
Their servers are hosted in Equinix's LD5 and HK4 data centers which are known as two of the world's largest trading ecosystems, allowing clients to get the best raw spreads at the fastest execution speed available.
In addition, ThinkMarkets zero spreads allow traders to avoid mark-ups. This is the best low-cost option for traders to calculate their costs more precisely in advance.
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.
6. Exness
Exness provides ECN (Electronic Communication Network) service to its clients through their raw spread and zero accounts. These account types offer a minimum spread of 0.0 pips, ensuring tight pricing for traders.
Additionally, Exness charges a commission of up to $3.5 per lot traded on these accounts. This allows traders to access transparent pricing and direct market execution, making Exness a competitive choice for those seeking ECN trading services.
The choice of broker is adjusted to the needs of each trader. If you are a trader who only needs a basic platform and trading features with the best attributes, then Exness can be your best choice.
Exness covers its lack of feature variations with other advantages like low spreads starting from only 0.1 pip. This is very suitable for traders who use scalping strategies (Scalper). Spreads on major pairs in certain account types can also be as low as 0.0 pip, depending on market conditions.
Not only that, but traders can also enjoy other advantages such as automatic fund withdrawals. Exness processes the majority of client withdrawals instantly, without manual checks; however, withdrawals may be subject tos depending on the payment provider or method of choice.
The safety of traders' funds is also guaranteed as Exness is one of the European-based STP/ECN brokers. Exness's ability to become an official partner of the Real Madrid soccer team for 3 years, starting July 2017, also provides evidence that the company has high solidity.
Deposits and withdrawals may be made 24 hours a day, 7 days a week. However, it is important to note that the company shall not be liable fors in processing deposits and withdrawals if suchs are caused by the payment system.
Traders do not need to worry about transaction fees when depositing and withdrawing. Exness doesn't charge any transaction fees to traders even though some charges may be incurred depending on the payment provider of choice. A variety of payment methods are provided for traders, including Wire Transfer, Bank Card, Neteller, Skrill, and many others.
The financial reports and metrics on the Exness website are audited quarterly by Deloitte, one of the four largest public accounting firms globally.
Moreover, Exness is one of the mote transparent brokers in the online trading industry. Traders can find out all information about this company on the website, such as trading volume, number of active clients, client deposits, company funds, and many more.
The platforms provided by Exness vary in MetaTrader 4, MetaTrader 5, Web, and Mobile platforms. This makes it easy for traders when trading on Exness, as they can also access Exness platforms anywhere and anytime.
Over the years, Exness has developed into a broker that attracts traders. Trader's trust is further enhanced by its compliance with financial regulations like the FCA and CySEC.
One measure of client confidence can be put on the trading volume. By December 2018, their clients' monthly trading volume reached USD348.4 billion and active traders around the world surpassed 50,342.
Through the program offered by Exness, traders also have the opportunity to earn extra income by becoming their partners. From the Introducing Broker (IB) program, partners can earn up to 33% spread commission from every new client that registers with them.
Additional income can also be obtained from Exness Partners. Traders can get a spread commission of up to 25% per transaction made by traders who register through an affiliate link.
When trading with Exness, clients can also make use of its free VPS hosting services. A VPS (Virtual Private Server) offers increased reliability and stability for traders as they can maintain their trades and expert advisors without interruption in the event of unexpected technical issues, such as internet or electricity downtime.
From the review above, it can be concluded that Exness is a favorite broker for traders because of low spreads and flexible account types. This condition is very suitable for traders with limited funds but is in need of more opportunities to get maximum profit. This broker is also well known for its maximum support on both new and existing partners.
ECN Account Has Flaws
Nevertheless, there is no perfect thing when it comes to trading. Even though there are many benefits traders can take from a broker's low commissions ECN account above, there are some flaws that might go hand in hand with the account itself.
That being said, it might be different according to each broker's policy, but in general, here are some of the most common flaws of an ECN account.
1. No Micro Lots
Sometimes it might be almost impossible for traders who want to open smaller positions. The main reason is that most liquidity providers can also have such high requirements and service costs.
This might be a problem if you are looking for a smaller lot, but then again, this policy might be different according to which broker you trade with.
2. High Deposit
A lot of ECN brokers require a huge amount of deposit. Some traders might not like it because that means they will have to provide a lot of money in the beginning.
But, since they pass your order directly to liquidity providers, this is a good bargain.
3. Fixed Commission
Brokers typically don't charge spreads on their ECN accounts. On the other hand, they implement fixed fees and commissions for every transaction.
However, the fees are different from one broker to another. ECN account is not very suitable for small trading stakes, since a commission fee might easily swallow up your profits.
After Thoughts
An ECN account is a great way to get the best market price. Most brokers provide ECN accounts for professional traders, so some may think it is unsuitable for small-cap traders.
You can always choose low commissions ECN accounts in one of the abovementioned brokers as a solution for that problem. Some of them may even charge you 0 spreads along with low commission fees.
Another pro tip is to always check what other features your broker has in store. For example, you can check what kind of analytical tools they provide to complement traders' strategies, or if they have a swap-free option.
When it comes to low trading fees, a lot of traders might be having a hard time choosing between ECN and fixed spread. While both have their own advantage and disadvantage, how do you know which one is better for you?
12 Comments
Dec 31 2021
most people don't realize, but a commission fee is a big part of trading. It's always great to find out your broker commission fee beforehand.
Jan 3 2022
Where do broker with 0 commission fees get their profits from? Just curious.
Feb 18 2023
213riverside: If you carefully read the trading conditions offered by the brokers, if the spread is more than 1 pip or not the RAW spread, then the commission will drop to even 0. However, when RAW spreads are offered, the commission will be higher than the standard account level.
And other things like swap fees, or other fees like inactivity fees, even deposit and withdrawal fees. Or all the fees you paid when trading Forex are paid to the brokers. SO they make a profit from all the fees you charge, including the swap that occurs on each trade which also includes the broker's profit. Therefore, when offered little or even free on one term, the other will be more expensive
Jan 5 2022
I have just started trading, but I use a low spread account. Is ECN account more dangerous compare to STP?
Feb 18 2023
bulltrader: The problem is not the danger or not, but the necessary features. If you are a beginner, scalpers for example. You can use an ECN account if you want. But if you are a beginner and do not really need to use the ECN function, it is better to use the standard account.
For example, a scalper, for example, needs extremely low spreads to minimize trading costs, because the spread occurs every time he opens a trading position, while the day trader or a swing trader opening a position will choose a regular standard account because the standard account has a lower commission. I mean, there are a lot of elements that you want to use or not. Depends on your trading needs
Jan 11 2022
I don't recommend this for a new trader. While it has a great opportunity, the risk can be too high for newbies.
Jan 14 2022
Does all ECN account charge a commission fee? Where can I find free commissions account?
Feb 18 2023
newbiedontbully35: Yes, all ECN accounts charge a commission. The main source of the broker's income is spreads and commissions. Since the ECN account provides the real market situation, the trader can know all the conditions occurring in the market (this is called the DOM feature); the trader himself can see the actual spread occurring in the market. In addition, the spread cannot be marked up by the broker. This means that the broker cannot profit from the spread. Instead of spread, the broker charges a correspondingly higher commission.
So, I make sure the 100% EXN account has a commission fee and is higher than the commission fee of other accounts
Jan 17 2022
I'd say ECN is probably better since it technically doesn't allow broker to trade against you
Feb 18 2023
Ted: I agree! ECN connect we as trader to the main liquidator provider without any hidden fees. Even we can see the other trader's position, the real spread, and the real condition on the market.
Meanwhile other account or broker, sometimes, even we don't know is they are Non dealing desk or Market maker because they are not telling that they are Non dealing broker or Market Maker broker.
But need to be noted, the commission in ECN Account is higher and many features that may not known well by beginner trader. Better to use standard account if posible, by seeing the scalping trading is allowed and sread is floating, you can know the broker is the Non Dealing Desk broker.
Jan 19 2022
ECN is considered to have better 'transparency', but always be careful when trading. Pick your broker wisely.
Feb 18 2023
Indiana: Actually, you are right. It is necessary to pay attention to the ECN broker. Is this a real ECN broker or just an STP broker with an ECN account. Today, many brokers claim that they can offer ECN accounts with raw spreads and commissions based on rounds. Because these two are considered the main advantages offered by ECN brokers. Meanwhile, ECN accounts can actually offer much more, but very few new traders know about it.
For this reason, many people have fallen into the hands of an "ECN-STP" broker claiming that they are trading with an ECN account. The commissions received are higher than in other accounts, although with Raw SPread the trading fees are always higher than in the regular account and you cannot even get the transparency you should have in an ECN account.