5 Best ECN Forex Brokers in 2021

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ECN brokers (Electronic Communication Network brokers) are among the fastest emerging brokerages in Forex. In short, ECN Forex brokers provide a marketplace where traders & market makers can place competing bids against each other, sometimes as part of a hybrid ECN / STP execution model. 

1
FP Markets
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
2
Pepperstone
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
3
FXTM
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
4
BlackBull Markets
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders

FP Markets
5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500

fpmarkets is an Australian brokerage which launched in 2005. Headquartered in Sydney, Australia’s financial capitol, they have carved out a solid niche for themselves as the best Forex / CFD broker enjoying ASIC regulation. Australian regulators are much more relaxed about leverage than their counterparts in the U.S.A., U.K., and the E.U. and so fpmarkets can offer a maximum leverage as high as 500 to 1.

For most traders, the standout unique selling point of this broker lies in the incredibly wide range of tradable assets offered, providing an opportunity to trade over ten thousand individual stocks and shares. These go beyond the typical U.S.A. and U.K. companies and include a good selection of publicly traded shares on the Hong Kong and Sydney exchanges, as you might expect from an Australasian-facing broker like fpmarkets. Also, over 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin are also on the menu here.

Unique Features

Headquarters

Australia

Regulation

CySEC, ASIC

Year Founded

2005

Type of Broker

No Dealing Desk

Minimum Deposit

$100

Maximum Leverage

1:500

Type of Platform

MetaTrader 4, MetaTrader 5, IRESS

They offer an unusual hybrid ECN/STP execution model which means that their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.

Traders can scalp and hedge at this broker, whose fast ECN execution speed makes it a natural home for scalpers. Clients may choose between the MetaTrader 4 and MetaTrader 5 platforms, and shares can be traded through the IRESS trading platform which includes access to level 2 exchange data.

FP Markets Pros & Cons

Advantages

  • Choice of trading platforms and auxiliary trading tools

  • Very competitive cost structure and excellent asset selection

  • Low minimum deposit requirement and leverage of up to 1:500

  • Well-regulated and trustworthy

Disadvantages

  • Availability of Iress geographically restricted

  • Limited commodities and metals selection

FP Markets is an Australian multi-asset broker with more than $1 billion in daily trading volume, serving clients from 80+ countries. Founded in 2005 in Australia, FP Markets grew into a trusted brand over the past 15+ years with more than 100 employees. The upgraded MT4/MT5 trading platforms, via the Trader Tools consisting of twelve plug-ins, present clients with a competitive edge. We have conducted an in-depth review of this CFD broker to provide traders with a complete overview of the trading environment at FP Markets.

FP Markets Snapshot - ECN trading with leverage up to 1:500 

Headquarters

Australia

Regulation

ASIC, CySEC

Established

2005

Execution Type

No Dealing Desk (NDD)

Minimum Deposit

$100

Maximum Retail Leverage

1:500

Trading Platform(s)

MT4, MT5, Iress (proprietary)

Pepperstone
5.0/5 in this category
In Summary
Great ECN execution on MT4 platform


Pepperstone, founded in 2010 and headquartered and regulated in Australia, the U.K., and Dubai, is possibly the most well-known ECN Forex broker in the world. ASIC’s deft regulatory touch combined with local expertise made Australia a haven for broker startups heavy on technology and offering extra-speedy frictionless execution and extremely high maximum leverage. Pepperstone offer geographically eligible clients a maximum leverage as high as 500 to 1, which is enough for anybody’s trading needs.

Unique Features

Headquarters

Australia

Regulation

FCA, ASIC, DFSA

Year Founded

2010

Type of Broker

ECN/STP

Minimum Deposit

$1

Maximum Leverage

1:500

Type of Platform

MetaTrader 4, MetaTrader 5, cTrader

As an ECN broker, Pepperstone offer raw spreads and low commissions. Taken together, Pepperstone’s “Razor” account gives one of the lowest and most competitive cost of trading in Forex that you will find anywhere.

In addition to their global headquarters in Australia, Pepperstone also have presences in London, England, where they enjoy full regulation by the Financial Conduct Authority (FCA), and in Dubai, where they are regulated by the Dubai Financial Services Authority (DFSA).

Pepperstone is renowned for its advanced technology tools such as Smart Trader Tools and cTrader Automate. cTrader is one of the more popular trading platforms out there but is not offered by a majority of brokers, so Pepperstone can be a good choice if you want to trade with an ECN brokerage through the cTrader trading platform.

Pepperstone Pros & Cons

Advantages

  • Low minimum deposit and high leverage

  • Choice of trading platforms and social trading alternatives

  • Comprehensive MT4/MT5 upgrade package and VPS hosting

  • Active trader program and competitive cost structure

Disadvantages

  • Limited asset selection

FXTM
5.0/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

We have made FXTM our top-rated broker because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.

Unique Features

Headquarters

Cyprus

Regulation

CySEC, FCA, FSC, CMA

Year Founded

2011

Type of Broker

Instant/Market Execution

Minimum Deposit

$10

Maximum Leverage

Flexible

Type of Platform

MetaTrader 4, MetaTrader 5

FXTM, or “ForexTime”, has been around for a long time: they were founded in 2011. Recent years have seen them continue to steadily expand their business, and they are well- regulated by the U.K., Cyprus, Mauritius, and South Africa. The brand is owned by private companies incorporated in the U.K., Cyprus, and Mauritius. Customers of FXTM have access to more than 57 Forex currency pairs and crosses, precious metals, the major energies, equity indices, big cryptocurrencies, and a few individual American stocks. Talking of stocks, FXTM are quite unique in the area of trading stocks, as they enable direct trading through real legal ownership, not just wrapped as CFDs like almost every other similar brokerage offers.

FXTM offers traders a choice between two of the most popular execution models: customers may open either an ECN-type account, or one that trades by “straight-through processing”. Clients have a straight choice between two trading platforms, with both MetaTrader 4 and MetaTrader 5 on offer.

Through their Mauritius regulator, FXTM offer leverage as high as 1000 to 1. In the U.K. and Cyprus, they are limited by law from offering more than 30 to 1.

If you are looking for a broker with a good copy trading program, it is worth taking a serious look at FXTM’s “FXTM Invest” copy trading program.

FXTM Pros & Cons

Advantages

  • Excellent client deposit protection

  • Low minimum deposit

  • Free MT4 add-ons and VPS hosting

  • Good educational tools

Disadvantages

  • No cryptocurrencies or exotic currencies

  • Low leverage for retail traders

  • Internal withdrawal fees and an inactivity fee

BlackBull Markets
4.5/5 in this category
In Summary
Competitive ECN trading environment with scalping and hedging available

BlackBull Markets is a relative newcomer as a Forex broker, being founded in 2014 in New Zealand, which along with Australia, has become something of a haven for exciting Forex brokerages. Like many antipodean brokerage houses, BlackBull Markets is an ECN broker, offering raw spreads and competitive commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1.

Unique Features

Headquarters

New Zealand

Regulation

FSPR, FMA

Year Founded

2014

Type of Broker

ECN/STP

Minimum Deposit

$200

Maximum Leverage

1:500

Type of Platform

MetaTrader 4, MetaTrader 5, Web-based

In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia

BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should not worry the average trader who is more concerned to have a normal range of markets to trade without being overly worried about diversification.

BlackBull Markets impresses through a kind of quiet confidence – they do not make extravagant claims, they simply focus on providing the basics required for ECN trading well and at a reasonable cost.

BlackBull Markets requires a minimum deposit of $200 which may put it out of the range of traders intending to make smaller deposits, at least initially.

 

BlackBull Markets Pros & Cons

Advantages

  • High leverage of up to 1:500

  • ECN/NDD execution model from a minimum deposit of $2,000

  • Competitive ECN pricing environment and volume-based rebate program

  • VPS hosting and social trading support via market-leading providers

Disadvantages

  • Limited asset selection

  • No MT4 upgrades despite labeling itself as a FinTech company

What is a True Electronic Communication Network (ECN)?

This model is sharply differentiated from “market maker” brokers who take the other side of their customers’ trades. Minimum deposits for ECN accounts are often higher than they are with standard Forex accounts, but there are several significant advantages offered by the best ECN brokers, such as the ability for scalping and lower spreads.

With so many attractive options to choose from, choosing between different ECN trading options can be surprisingly difficult. Compounding the decision is the fact that many traditional brokers offer ECN accounts in addition to their standard trading accounts, which widens your pool of options.

To make your decision easier, we have compared critical aspects of some of the top ECN brokers to give you a starting point in your search for the best ECN Forex broker.

How does ECN Forex brokers work?
Click on image to enlarge

More and more brokers are advertising themselves as ECN brokers, or at least offering ECN-type accounts. There is a lot of controversy around the question of whether many of these brokers are “real” ECN brokers. So, what is a “real” ECN broker, and how can you tell when one is telling the truth?

A true ECN broker is simply defined as a broker that plugs your orders into a network where it is automatically matched to a matching order from another client or liquidity provider. This is the textbook definition to work from. Most brokers claiming to be ECN brokers are probably telling the truth about this at least, although if you see large spreads, spreads that never seem to really vary, or continuously slow execution, they are almost certainly not.

The more sophisticated problem arises when we ask what qualifies as a “liquidity provider”? If it is just another dealing desk, then how can it be a “true” ECN offering? The network is only as good as its source. To be regarded as a real ECN broker, the liquidity provider should really be a tier 1 bank. We must wonder how often this is really the case, and why many brokers that advertise themselves as ECN brokers are so tight-lipped about which liquidity providers they use!

When the first ECN brokers started appearing, bank traders started to ask how orders for mini-lots (0.1 lots), let alone micro-lots (0.01 lots) could possibly be sent straight through to tier 1 banks for processing. Bank traders will tell you that at this level, trade sizes are usually in minimums of ten or so full lots. This suggests that an ECN broker offering smaller minimum trade sizes must inevitably perform a “bucketing” of orders, and that would require a kind of dealing desk to process and allocate the bucketing.

The final question is, does it really matter? If a broker is at least trying to match orders directly, there is not much of a conflict of interest, potential or otherwise. If you benefit from a low cost of trading and relatively fast execution, then why not be happy with what you have got. Just do not be under any illusions as to what is probably going on behind the scenes.

Basics of an ECN Broker

An ECN broker runs a computerized system which matches its customers’ trade orders electronically and automatically. For example, customer A wants to sell 1 lot of EUR/USD at the price of 1.2000. Customer B wants to buy 1 lot of EUR/USD at the same price. An ECN broker will have a system that can match these two orders, where the broker does not take the other side of the trades. The ECN broker makes most of its profit from charging commission on each trade order which is matched.

You will know you are looking at an ECN broker when you see tight spreads and fixed commissions.

Understanding the ECN

ECN brokers will observe different price offerings, known as quotes, from the different liquidity providers they use and offer their customer access to the one with the best spread. The spread will depend on the difference between the buying and selling price and it is measured in pips.

Spreads tend to be lower at ECN brokers, but ECN customers need to understand that the true “spread” is really the spread plus commission charged.

As ECN brokers do not “make a market”, when there are high-impact events in the market which trigger high volatility, it can actually be more difficult to trade normally with an ECN than it might be with a market-maker / no dealing desk broker.

Benefits of the Electronic Communications Network

The primary benefit of using a broker with an ECN execution model is that the broker does not profit from their clients’ net losses, unlike most Forex / CFD brokerages who make their own market though a dealing desk. ECN brokers match corresponding orders between their clients and pass the net orders to liquidity providers. This means that there are fewer potential conflicts of interest between an ECN broker and their clients.

Traders using an ECN broker should get honest, automated, anonymous, and fast trade execution.

As ECN fee models usually offer lower spreads in practice although commissions are also charged, ECNs often offer an overall lower cost of trading to clients trading in relatively large quantities.

Where a true, pure ECN execution model exists, customers can even occasionally benefit from inverted spreads, which occurs when for at least a few moments, the bid price is lower than the ask price. In theory, these moments offer an opportunity for risk-free profit if execution is fast enough, but once the commission charged is factored in any net profit would vanish. Inverted spreads do at least offer a relative bargain to the trader.

Disadvantages of the Electronic Communications Network

While the spreads available from an ECN broker are generally low, when commissions are factored in, the smaller trader might find they are paying the same overall cost of trading as they would at a market-maker broker. On top of this, spreads can be very unpredictable in an ECN network, depending on the market behavior of the ECN broker’s clients. When natural liquidity is thin, spreads may be very wide, particularly at the time of major market releases.

Some ECN brokers do not offer trading in micro-lots but impose a minimum trade size of 1 mini-lot. Therefore, again, this might force traders with relatively low trading capital to trade higher position sizes than they would ideally want to, forcing them into an over-leveraged position.

How Does an Electronic Communication Network Work?

Once you place a trade, it will be matched with a buy or sell order from someone else in the world. It will be executed immediately and anonymously, and you will be charged a fixed commission price and probably a relatively low spread.

ECN Trading

Traders who have never used an ECN broker will find that the experience of ECN trading can be very different to trading with brokers using the more common market-maker / dealing desk execution model. ECN trading can be less liquid when major events are moving the market. Market-makers tend to widen spreads at these moments, but ECN brokers will often present very large and sudden price jumps in their price feed, even if spreads will tend to remain somewhat lower than those offered by market-maker brokers.

As a general rule, trading liquid markets during periods of peak liquidity is where the practical benefits and economies of ECN trading become most obvious.

Possibly one of the greatest benefits of using an ECN broker is largely intangible: knowing that you have no potential conflict of interest with your broker, because they do not make any additional profit when you make a losing trading.

What to Consider When Choosing the Best ECN Brokers

The best ECN trading account forex broker for you will depend upon where you are resident, how large or small you trade, what you trade, and how frequently you trade, as these will all affect the cost of your trading. Different fee models will be more economical for one type of trader than another. Keep your trading style in mind when you are comparing broker offerings. It is always a good idea to read the small print since a low spread could mean a bigger commission and vice versa.

Choosing an ECN broker is not very different from choosing any broker. There are not many special factors to watch out for at ECN brokers that differ from what should be the usual considerations.

When choosing any Forex broker, you should start from how much money you want to deposit, what kind of instruments you want to trade, how often you want to trade, and where you are located. Beginning with these three factors, you should be able to eliminate several brokers from your list of candidates. The good news is that brokers that do not meet minimum standards of acceptability in one area are usually the same ones that will not meet required standards in other areas also, so it becomes easier to eliminate them.

Starting with location, you might feel more comfortable with a broker located in your own country (or a nearby country), or one in a country that speaks the same language as your or which has a similar legal system. If you are a U.S. resident, you have special issues to consider as the U.S. is quite restrictive in Forex trading and if you must be onshore you have little choice, but it makes your choice easier. If you live in the United Kingdom, you might want a U.K.-based broker that offers spread betting format for tax purposes, so you will probably not have to pay any tax on any winnings. This is probably the easiest place to start and helps you narrow down the list considerably right away when choosing a Forex broker.

The next step to consider is regulation and the safety of your deposit. This might not matter so much to you if you only intend to deposit a relatively small amount of money that is not very important to you. If not, though, this is a very big issue. Some countries have a well-developed culture of financial regulation enforcement, which is always reassuring, and are just not places where the big fraudsters can thrive. Another big issue to consider is whether any protection is offered on your deposit. For example, at the time of writing, the United Kingdom government protects everyone’s deposit with any regulated broker up to a maximum amount of GBP 75,000. This means that if you deposit that amount or less with a broker regulated by and based in the United Kingdom, if they steal from you or cheat you or even just go bankrupt, you should eventually receive your deposit back from the government there. This is a significant advantage and provides a lot of reassurance. If your deposit is a significant sum, you should seriously question whether it is wise to deposit it anywhere that does not offer government-backed deposit protection. You also should be biased towards reputable financial centers and away from tiny islands you never heard of before!

The third factor to think about is the cost of trading. These days, there is no reason why anyone with a significant amount to deposit should put up with a total spread and commission equaling more than 1 pip on the benchmark EUR/USD Forex currency pair. One way to compare spreads is to open demo accounts at each of your candidate brokers to see what their spreads really are. One potential problem with this strategy, however, is that brokers have been known to make conditions in their demo accounts, including spreads, significantly better than those which prevail in their real money accounts. Fortunately, there are a few websites which compare the spreads of real money accounts in real time across a range of different brokers, so looking here is going to be a good idea.

Another serious factor to consider in choosing a broker is your style or intended style of trading i.e. how many trades you usually make. Are you or are you going to be a scalper, day trader, swing trader or position trader? If you are making few trades but leaving your positions open for several days or even over weeks and months, you should consider how competitive are brokers are in terms of their overnight financing rates which are generally charged each day against positions left open at 5pm New York time. For position traders, these rates can make more difference to overall profit and loss than the spreads charged, at least up to a point. However, if you are going to be leaving trades open for only minutes or hours but making many more trades, the spreads become a more influential factor, and overnight financing may not be an issue at all. This means that of two Forex brokers, one might be the most economical choice for you as an intraday trader, but not as a longer-term trader holding positions overnight.

The next thing to consider is the broker’s trading platform. Does it work smoothly, or does it have problems freezing up? It is easy, intuitive, and pleasant to use, or not? Does the execution work in a manner that suggests the Forex broker is a true ECN broker or something close to it?

Finally, you can think about the issues that brokers’ advertising likes to focus on, but which are really the lowest of your concerns. Bonuses and other beneficial promotions could be interesting, but check the small print: accepting a bonus, deposit or otherwise, can mean you will be unable to withdraw a certain amount of your deposit until you have made a minimum number of trades.

One good think about choosing ECN brokers is that they tend to aim at a more sophisticated market than market-making brokers, meaning that you probably will not have to worry about misleading terms or hard sells. The most professional brokers of all sometimes have poor advertising and customer service, but they may be offering you the best ECN brokerage deal possible.

Reputable ECN Brokers Checklist

  • Where is the broker regulated? Reputable financial centers with strong regulatory protection for retail traders are best.
  • Does the broker have a generally good reputation? Do some internet searches and see what customers say, but do not believe everything you can find without verifying it. Pay most attention as to whether they have been fined or censured by any regulator or legal system.
  • Has the broker been in business for a long time? As a general rule, the longer a broker has been in business, the better. Two years in business is a good minimum benchmark.
  • Is the broker clear about having the capability to process withdrawals quickly? Anything longer than 3 business days should raise a red flag.
  • The broker should offer the kind of customer support that responds efficiently to any serious problem flagged by a client within 24 hours.
  • If you are very determined to find “true” ECNs, be aware that this type of broker will sometimes momentarily offer inverted spreads. An inverted spread is one where the bid price can be lower than the ask price for a few moments.
  • Check to see the full range of assets offered by the broker, and what the typical spreads, commissions, and overnight fees applicable stand at.
  • Check to see that a broker’s required minimum deposit (if any) is not greater than the sum you are willing and able to deposit.
  • If you have a favored trading platform you are really set on using to trade, you should check whether a broker offers that platform. Alternatively, you may want to at least check that the platform or platforms offered are acceptable to you.
  • If you are looking for an Islamic or Nano account, check that the broker offers such an option.
  • Check the available funding methods for the ECN Brokers – do they accept e-payments, debit cards, credit cards or bank wire transfers?
  • Does your ECN broker offer local training and seminar presentations?

Why do ECN Brokers Need to be Regulated?

It is important for any broker to be regulated in order to keep your funds safe and protect you against fraud. Reputable brokers are generally multinational and therefore supervised by more than one regulatory body. You will be assigned to the broker’s legal entity most suitable to your country of residence, which means policies may differ between different geographical branches of the same broker.

ECN Brokers’ Commissions & Fees 

An ECN broker will give you low spreads. However, they will charge commission as well as spread, unlike non-ECN brokers which typically will not charge commission.

For example, the broker FXCM offers a non-ECN “standard account”. Its minimum spread in trading the EUR/USD currency pair is 1.3 pips, but no commission is charged. The broker fpmarkets offers an ECN account with an average spread of 0.1 pips in EUR/USD but also charges a commission per trade (i.e. entry and exit) equivalent to 0.3 pips. This means that under these conditions, the cost of each trade would be 0.4 pips (0.1 pip spread plus 0.3 pips commission).

ECN Brokers Funding & Withdrawal Methods

Funding and withdrawal methods will depend on each broker. Your options might be e-payments, debit cards, credit cards or bank wire transfers. Some brokers specify minimum and maximum withdrawal or deposit amounts. They might charge a fee depending on the method you choose, and the procedure can be immediate or take up to a few business days. In any case, no withdrawal should take more than three working days to process unless there are unusual circumstances.

Many brokers impose minimums or even maximums on deposits and withdrawals. Most typically, minimums are imposed on deposits and maximums imposed on withdrawals.

For example, the ECN broker fpmarkets will only accept a deposit that is at least $100 or the equivalent. They impose maximum daily limits on deposit through certain payment channels due to anti-money laundering requirements. Regarding withdrawals, fpmarkets set no maximum limit as long as there are sufficient funds available in the account.

ECN Brokers with Round-the-Clock Support

If you choose to deposit with an ECN broker, it might be a good idea to make sure they offer around-the-clock support. The reason behind this is because ECN brokers authorize 24/7 orders for crypto CFDs, and the Forex worldwide is open around the clock from Monday in New Zealand until Friday evening in New York. There are even a few Forex brokers offering weekend trading.

Understanding Different Types of Brokers: ECN, STP, ECN+STP

Once you know what your goals as a trader are, it is important to understand the types of brokers and what each of these has to offer. The first thing you should look at is the type of network they offer. These could be ECN, STP or the hybrid model which is ECN+STP.

Types of Brokers

Brokers can be categorized depending on the network they use to function, thus offering different prices, trading hours and execution times. The available systems are ECN, STP and ECN+STP.

Dealing Desk

A dealing desk is a network operated by certain brokers. When you place an order through a dealing desk, your broker will take the other side of your trade. In other words, the broker employs skilled professionals, or maybe operates an algorithm, to build an inventory of currencies which it passes off to its customers at different prices as required. There will usually be relatively fixed spreads, and they do not depend on an external liquidity pool. Dealing desk brokers are also known as market makers.

No-Dealing Desk

This means the market order does not pass through a market maker. Buys and sells go

directly to the liquidity provider. No-dealing desks can either be STP or ECN brokers.

STP brokers

STP stands for Straight Through Processing. It is a no-dealing desk broker. STPs will set prices and market conditions depending on the customer’s trade volume, performance, and account type. They offer relatively small commissions and higher spreads.

ECN brokers

An ECN broker will consolidate their prices after comparing costs from several market providers in order to offer the lowest spread. They will earn their profit by charging a fixed commission.

Hybrid Model

A hybrid model is when both ECN and STP models are fused together in order to create a better deal for both the broker and the client. They can use characteristics from ECN and STP to automate trades, change spreads and commissions, and work with different markets.

ECN vs. Standard Account

If you see a broker offer something called a “standard account”, that broker (or at least, that account) will almost certainly not be an ECN. They will probably be offering an account which operates under a market-making order execution. Make sure you know what you are getting.

Alternative ECN Brokers 

We have listed what we consider to be the top 4 ECN brokers. We note there are a number of alternative brokers widely recognized as ECN brokers:

FAQs

What are ECN brokers?

ECN brokers are non-dealing desk brokers offering right spreads, 24/7 trading hours, immediate execution, and fixed commissions.

Which is the best ECN broker?

It will depend on your needs. It is always a good idea to try out a demo account and see if the broker meets what you are looking for. Check the maximum leverage offered, minimum deposit required, range of assets, regulation, and platform types. If they match what you are seeking, that ECN broker deserves a place on your shortlist.

Which is better? ECN or STP?

In practice, there is often little difference between two execution policies where one is labelled “ECN” and other “STP”. To some extent these terms are ill-defined, as one may be used rather than another primarily for marketing purposes. The best approach is likely to be one of looking into and understanding the details of a broker’s actual execution policy rather than the label it gives itself, then comparing between prospective broker candidates.

How do ECN brokers make money?

ECN brokers make money from fixed commissions charged to the customer on each trade.

Huzefa Hamid

Huzefa Hamid is a retail Forex trader with substantial financial market knowledge and derivative products' expertise. He trades currencies, equities, futures, commodities, treasuries and options. Huzefa wrote the Fibonacci retracement levels course for FX Academy, as well as other courses, and is the author of dozens of articles about Forex trading and the online finance industry. Huzefa is an industry researcher and uses technical analysis for trading as he believes that technical indicators offer the cleanest way to predict the future direction of price movements.