Why do you need an ECN account for Forex, brokers and trading features

ECN account is one of the most comfortable options for trading, since trading in this case is carried out using the Non Dealing Desk system.

That is, all transactions are entered into the interbank market, where currency trading itself occurs.

This approach allows you to achieve the greatest liquidity, which means reducing the spread to almost zero values.

The opportunity to open this type of account is provided to the ECN company by brokers , of whom there are more and more people on the Forex market every day.

Trading without broker intervention occurs using electronic systems that transmit client orders to the foreign exchange market with maximum speed.

It’s not for nothing that the abbreviation ECN stands for Electronic Communication Network. The use of such a system does not require human participation in the execution of bizhe orders:

That is, you submit an application to open a transaction in the trading platform, it is sent to your broker’s server, and from there to the global foreign exchange market where it finds a counter application.

The main advantage of an ECN account is that with this type of trading there is no conflict of interest, in which the broker makes money on the client’s loss.

 The responsibilities of the brokerage company include only ensuring uninterrupted communication and charging a commission for its work.  

Features of trading on ECN accounts

If we talk about the advantages of trading on ECN accounts, there are quite a lot of them, it’s not for nothing that this option is recognized as the best solution for professional trading:

• Lower spreads (fees for opening trades)
• Opportunity to make transactions of maximum volume
• Maximum order execution speed, which depends only on the speed of the Internet connection
• 24-hour trading 5/7, and when using cryptocurrency pairs even 7/7
• Availability of information on the volume and direction of transactions concluded by other trading participants
• The ability to influence the market by concluding large transactions

As for the disadvantages of these types of accounts, they include:

• lower leverage, usually several times lower than on PRO
• high initial deposit with some brokers, often the minimum amount is from $500

Promotion Open an ECN account with a deposit of $10 or more from a leading broker

But even this does not make ECN accounts less attractive for trading, because in this case you are not working in the kitchen, but on the real foreign exchange market. Which virtually eliminates fraud on the part of your Forex brokerage company.

In addition, I would like to note one more point: if previously an ECN account only involved forex trading, now such accounts also allow transactions with other assets, such as metals, stocks, commodities and indices.