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ECN / STP Forex Brokers Comparison

 
ECN/STP FOREX BROKERS COMPARISON
ECN means Electronic Communication Network and refers to a currency-trading network that is designed to match automatically bid and ask orders and execute transactions without intervention. Via the use of the ECN network, participants in different geographic locations can easily trade with each other without the need for a middleman. ECN Forex trading is an electronic bridge connecting Tier-1 liquidity providers (banks) and smaller market participants such as retail traders. This connection is realized via an ECN Forex Broker and the use of a Trading Platform such as the classic MetaTrader4. This is a basic ECN Forex brokers comparison.
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» IC MARKETS

◙ ECN/STP FOREX BROKER 

US Residents: No
 
 

TYPICAL SPREADS:

EURUSD: 0.1 pip

GBPUSD: 0.3 pip

USDJPY: 0.5 pip

Trading Commissions$7.0 / full-traded lot
 
Max Leverage1:500
Online Since: 2007
Headquarters: Australia
Licensed: ASIC (No 335692)
Asset Index: 56+ Forex Pairs, Cryptocurrency trading, plus several financial products via CFDs

Bonus on New Accounts: N/A

Min, Deposit: 200 USD

MetaTrader: Yes

  • MT4/MT5
  • FIX/API
  • Free VPS
  • PAMM Accounts
  • Automated Trading / Scalping

 

» FP MARKETS

◙ ECN/DMA FOREX BROKER

US Residents: No
 

TYPICAL SPREADS:

EURUSD:  1.20 pip

GBPUSD:  1.60 pip

USDJPY: 1.46 pip

Trading Commissions: Included

There are also zero-spread account types, charging $7.0 / full-traded lot

 

Max Leverage1:500
Online Since: 2005
Headquarters: Australia
Licensed: ASIC (No 286354and CySEC (No 371/18)
Asset Index: more than 60 currency pairs, 2,000 shares, many cryptocurrency pairs, stock indices, metals, energies

Bonus on New Accounts: (N/A)

Min, Deposit: 100 USD

MetaTrader: MT4/MT5

  • FIX/API
  • Free VPS
  • IRESS Trader
  • PAMM Accounts
  • Automated Trading / Scalping
  • Autochartist

 

 

» FXTM

◙ ECN FOREX BROKER

US Residents: No

 

TYPICAL SPREADS:

■ EURUSD spread is 0.5 pip

■ GBPUSD spread is 0.7 pip

■ USDJPY spread is 0.7 pip

Trading Commissions

FXTM charge $2.0 per lot (ECN Accounts)

 

Max Leverage
Depends on the client's country, for Europeans 30:1
Online Since: 2011
Headquarters: Cyprus
Licensed: CySEC (No 185/12) and FCA UK (No 777911), and FSC Mauritius (No C113012295)

Asset Index: 50+ Forex Currency pairs, 10 Stock Indices, Shares, Energies, and Precious Metals

Bonus on New Accounts: 10%

Minimum Deposit: 10 USD

MetaTrader: MT4 and MT5

  •  Automated Trading / Scalping
  •  FXTM  loyalty program

 

 

» LQDFX

 ◙ STP FOREX BROKER

 

US Residents: No

 

TYPICAL SPREADS:

■ EURUSD spread is 1.1 pip

■ GBPUSD spread is 1.4 pip

■ USDJPY spread is 1.2 pip

Trading CommissionsNo

 

Max Leverage500:1
Online Since: 2015
Headquarters: Malta
Licensed: NO

Asset Index: 71 Forex pairs, 11 stock-indices, and 5 commodities

Bonus on New Accounts: 100% (Cash Bonus)

Minimum Deposit: 20 USD

MetaTrader: MT4

  •  Automated Trading / Scalping

 

Explaining ECN Forex Trading

ECN trading is the future of Forex Trading as it provides enormous liquidity, fast execution without price-manipulation, and tight transaction-cost.

How ECN Trading Actually Works?

The ECN Forex Brokers connect with the ECN Network via the FIX Protocol (Financial Information Exchange Protocol). This liquidity bridge is taking advantage of the vast market depth of the International Banking Industry. The ECN Forex Broker drives liquidity from tier-1 and delivers it to its clients without interference.

Variable Trading Spreads

Unlike Dealing-Desk brokers, ECN Forex brokers offer variable spreads to their clients. This is happening as ECN Forex Brokers do not control the bid/offer prices, and thus, they can offer only variable spreads and not fixed spreads. Any broker model offering fixed spreads is by rule the front end of a Dealing Desk system.

Types of ECN Forex Brokers

As in the case of other brokerage types, there are two main ECN Broker types: retail ECN brokers and institutional ECN brokers.

ECN Forex Trading Pros and Cons

The ECN Forex trading provides several advantages to Forex traders, and therefore, it is considered a ‘must’ for all professional and large-volume traders. Here are some of the advantages of ECN Forex Trading.

  • Narrower spreads between bid/ask prices and tighter transaction cost
  • Enormous liquidity that can be transformed into filling trading orders almost under any circumstances
  • No re-quotes and no price manipulation
  • The ECN brokers do not trade against their clients as in the case of Dealing-Desk brokers and that makes trading more reliable
  • Fast speed of trading, essential for scalping Forex
  • No execution delays even when important News is released, an essential feature for News-Traders
  • ECN Forex brokers allow Automated Trading, Scalping, Hedging, and the use of Expert Advisors
  • API trading is usually available by ECN Forex Brokers. API is a technology allowing traders to perform sophisticated risk management models and complicated automated trading strategies
  • Anonymity, as ECN trading activity, is by nature anonymous. This feature enables trading on neutral prices and real market conditions

Transaction Cost when Trading with ECN Forex Brokers

ECN Forex brokers charge trading commissions per transaction, and sometimes they also charge trading spreads. The transaction cost when trading with an ECN Forex Broker is generally lower than trading with other brokerage types (for example Dealing-Desk brokers). Real ECN brokers do not charge re-quotes and do not manipulate prices in any way. Furthermore, they provide anonymity for trading.

ECN Forex trading includes strong features and important advantages for institutional and retail Forex traders. The main advantages of ECN trading are tight spreads, no-re-quotes, fast execution, and anonymity. ECN Forex trading can be considered essential for day-trading strategies including Forex Scalping and News-Trading.  

 
 
ECN / STP Forex Brokers Comparison
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