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7 Best ECN Forex Brokers for 2024
Searching for the best ECN forex broker to trade with? Through our hands-on analysis, we’ve narrowed down the top 7 options to meet diverse trading needs. Practical tips from our experts are included.
By:
Reviewed By:
Updated: Oct 2, 2024
List of Top ECN Brokers
ECN pricing, tight spreads. Competitive trading commission. MT4 and MT5. Autochartist, Trading Central tools.
Diverse choice of digital instruments. Innovative crypto index. Very low Bitcoin spread. Research content geared towards crypto trading.
MT4, MT5 platforms. Trading Central MT4 tools. Raw ECN account. 1,000+ financial CFD instruments.
Fast order execution speeds below 45 milliseconds. Over 12,000 tradable instruments. Maximum retail leverage of 1:2000. Low minimum deposit requirement.
FIX API protocol for DMA trading. Free VPS hosting for high-volume traders. Choice of highly versatile trading platforms. Over 26,000 tradable instruments.
Low fees, zero spread, zero requote accounts. MT4, MT5, cTrader platforms. Advanced Trading Tools, VPS. High leverage for some regions.
12,000+ instruments. ECN execution spreads from 0.0 pips. Trading Central, Market Sentiment Tool. High leverage for some regions.
Navigating ECN Forex Broker
Standing for ‘Electronic Communication Network’, an ECN account offers direct access to the interbank market, a crucial feature that promises transparency and real-time execution of trades.
ECN accounts demonstrate how rapidly the financial world is becoming digital, offering traders an edge in a market that is increasingly competitive and fast-paced. ECN accounts are renowned for their quick execution, variable spreads, and the enhanced potential they offer for automated trading strategies. Additionally, they provide an added layer of anonymity, making them a popular choice among a wide spectrum of traders.
How did FX Empire choose the best forex ECN brokers?
- We researched the presence of ECN accounts, pricing, and execution.
- We tested the quality of order execution and pricing.
- We checked the number of trading services offered.
- We investigated the number of liquidity providers pricing is sourced from.
- We tested the trading platforms offered.
- We checked the broker’s licenses and regulations.
- We examined brokers’ trading commissions and fees.
Our team of experts has identified brokers’ strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.
Now let’s dive into the selected brokers.
Best Overall
4.6
Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
- $100Min Deposit
- 8977Tradable Instruments
- LowFees
Why We Picked It
Established in 2005, FP Markets has become a leader in providing trading accounts offering deep liquidity ECN pricing. Authorized and regulated by ASIC and CySEC, with one entity unregulated based in St. Vincent and the Grenadines (SVG), you can trade over 800 instruments from the MT4 and MT5 platforms.
Key Features:
- ECN account options:
Standard ECN Pricing Account. Zero commission. Spreads from 1.0 pip.
Raw ECN Pricing Account. 3 USD commission per lot, per side. Spreads from 0.0 pips. - Leverage:
ASIC entity – up to 1:30 for retail clients, 1:500 for professional clients.
SVG entity – up to 1:500 for all clients. - Trading platforms: MT4 and MT5.
- Tradable instruments: 72 FX pairs, 18 indices, 17 commodities, 12 cryptos, 680+ shares.
During the course of my research, I found that FP Markets provides a great offering for those interested in capitalizing on the benefits of ECN trading. The broker’s ECN account offers ECN pricing where quotes are sourced from different liquidity providers providing low latency execution, competitive spreads and zero requotes.
While there is no commission to pay on the Standard ECN Pricing Account, the Raw ECN Pricing Account does charge a commission but comes with much tighter spreads. According to my findings, the 3 USD per lot (100,000 units of currency), per side fee is much better than the industry average of 3.50 USD.
By trading live with the broker, I witnessed first-hand the number of trading tools offered on top of the industry-leading forex platforms MT4 and MT5. These tools included a Traders Toolbox for additional MetaTrader indicators, as well as access to Trading Central and AutoChartist.
I personally enjoy using AutoChartist as it can act as a real-time, algorithmic-based pattern recognition scanner for currency pairs across different timeframes. This helps to speed up the research and identification of market opportunities which combined with the speed of execution on the broker’s ECN Pricing accounts makes FP Markets an ECN broker to consider.
Pros and Cons
Pros
- ECN pricing, deep liquidity.
- Tight spreads, zero requotes.
- Trading Central, AutoChartist tools.
Cons
- No proprietary platform.
Best for Crypto Trading
4.1
CFDs are complex instruments and carry a high level of risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether trading is appropriate for you. You should not invest money that you cannot afford to lose. Leveraged products may not be suitable for everyone and may result in loss of all your capital.
- $5Min Deposit
- 130Tradable Instruments
- HighFees
Why We Picked It
FXGT.com is a forex and CFD broker founded in 2019 and headquartered in Seychelles. I was impressed by FXGT’s diverse offering of digital assets, including 33 crypto CFDs, 9 synthetic crypto CFDs (commodities, shares, and indices crosses), and 14 NFTs.
Key Features:
- ECN account options:
ECN Account. $6 round-turn commission. Spreads from 0.1 pips. - Leverage:
FSA entity – up to 1:1000.
VFSC entity – up to 1:1000.
FSCA entity – up to 1:500. - Minimum deposit: $0.
- Trading platforms: MetaTrader 4&5.
- Tradable instruments: 53 FX pairs, 12 indices, 56 digital assets, 6 commodities, 27 share CFDs.
FXGT has its unique approach to crypto trading. The crypto market is characteristically volatile, making it especially risky. However, FXGT has attempted to help its clients by developing its own crypto index – GTi12. The GTi12 index is comprised of 12 cryptocurrencies, and it allows traders to better navigate the turbulent crypto market by balancing their overall exposure.
FXGT.com has one ECN account type which features floating spreads from 0.1 pips and a $6 round-turn commission per traded lot. This combination meets the industry average. I also measured FXGT.com’s Bitcoin spread at around $5, which is considerably lower than the industry average of around $40.
FXGT.com incorporates the popular MetaTrader 4 and 5 platforms, which have easy learning curves and accommodate fast order execution. However, I consider MT4 outclassed by newer and sleeker platforms, which is made evident by its rather cumbersome charts. MT4 accommodates basic technical analysis.
Pros and Cons
Pros
- Diverse offering of crypto assets.
- Competitive prices.
- Platforms with easy learning curves.
- Diverse account types.
Cons
- Narrow choice of educational content.
Best MT4
4.2
Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.
- $100Min Deposit
- 926Tradable Instruments
- MediumFees
Why We Picked It
Established in 2015, VT Markets is authorized and regulated by ASIC and FSCA and has one entity based in St. Vincent and the Grenadines (SVG) which is unregulated. You can access ECN trading accounts from the MT4 and MT5 trading platforms and download a Trading Central MT4 tools package which provides real-time trading ideas from the MT4 platform.
Key Features:
- ECN account options: RAW ECN. Commission 3 USD per lot, per side. Spreads from 0.0 pips.
- Leverage: up to 1:500.
- Trading platforms: MT4 and MT5.
- Tradable instruments: 48 Forex pairs, 22 commodities, 24 indices, 43 cryptos, 51 ETFs, 805 share CFDs.
During our live test, I found that VT Markets offers its clients the option to trade from the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms. MT4 has long been the gold standard for forex traders due to its reliability and functionality. Beginner traders may find it easier to start with the web or mobile app as it is far simpler to navigate than the desktop version.
While there is a learning curve to the desktop platform, traders should not shy away from the platform as it comes packed with lots of features. This includes access to more than 80 in-built technical analysis indicators and drawing tools, a customizable chart layout, and access to the MetaTrader Market to download algorithmic trading strategies.
I enjoy using the MT4 platform myself as the execution speeds are great through the variety of order types available and its one-click trading feature. You can also clearly see any fees or commissions on your trades from the Terminal window which is useful for risk management calculations.
I also found that you can download a Trading Central MT4 package which comes with a range of extra tools for MT4. This includes a large selection of technical indicators such as Adaptive Candlesticks, Adaptive Divergence Convergence, and real-time trading ideas in MT4 from the Featured Ideas and Analyst Views tool.
During our live fee test, we found the spread for EUR/USD during the London and New York session averaged 1.3 pips which is a bit higher than the industry average of 1.0 pips for a commission-free trading account.
Pros and Cons
Pros
- 1,000+ financial CFD instruments.
- Trading Central MT4 tools package.
- RAW ECN account.
Cons
- Mac users may need to use external software to run MT4 on Windows.
Best for High Leverage
4.1
Forex trading involves risks.
- $10Min Deposit
- 95Tradable Instruments
- MediumFees
Why We Picked It
Founded in 2009, RoboForex is a forex and CFDs broker headquartered in Belize. It offers more than 12,000 tradable instruments on the R StocksTrader platform, free VPS hosting for high-volume traders, and fairly competitive trading fees. The maximum leverage with the broker is 1:2000, though the maximum leverage on its ECN accounts is capped at 1:500.
Key Features:
- ECN account options: ECN Commission 2 USD per lot, per side. Spreads from 0.0 pips
- Leverage: up to 1:2000
- Minimum deposit: $10
- Trading platforms: MetaTrader 4, MetaTrader 5, R StocksTrader
- Tradable instruments: 28 Forex pairs, 5 commodities, 51 share CFDs, 12,000+ real shares, 5 indices, 6 futures contracts
I clocked RoboForex’s average order execution speed (without VPS) at around 45 milliseconds, which beats the industry average. This performance is suitable for high-leverage traders because it decreases the risk of negative slippage.
High-leverage traders with RoboForex can opt for the MetaTrader 5 platform. It features more than 80 analytical tools and chart configurations, and it also supports all basic order types – market, limit, and stop. Furthermore, algorithmic traders can use MT’s Expert Advisors (EAs) feature to automate their strategies.
I carried out my tests on RoboForex’s ECN account, which features a $4 round-turn commission per traded lot and raw spreads from 0.0 pips. This combination beats the industry average. The account type’s minimum deposit requirement is only $10. RoboForex’s tight margin policy also protects high-leverage traders. The broker’s margin call is set at 100%, while its stop-out level is at 50%.
Pros and Cons
Pros
- Fast order execution speeds
- Over 12,000 tradable instruments
- High maximum leverage
- Free VPS hosting
Cons
- High spreads on some instruments
Best for Professional Traders
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
- $0Min Deposit
- 26121Tradable Instruments
- MediumFees
Why We Picked It
BlackBull Markets, a New Zealand-based derivatives broker founded in 2014, offers multiple services and tools geared towards professional traders. It incorporates several highly versatile platforms and provides access to over 26,000 instruments across different asset classes.
Key Features:
- ECN account options: Prime. Commission 3 USD per lot, per side. Spreads from 0.1 pips.
- Leverage: up to 1:500.
- Minimum deposit: $2000
- Trading platforms: BlackBull Trade, BlackBull CopyTrade, BlackBull Shares, cTrader, TradingView, MetaTrader 4, MetaTrader 5, ZuluTrade
- Trabale instruments: 64 Forex pairs, 6 commodities, 26,000+ share CFDs, 11 indices, 28 cryptocurrencies, 31 futures contracts.
I concluded that BlackBull Markets’ Prime account is ideal for seasoned traders. It features raw spreads from 0.1 pips and a $6 round-turn commission per traded lot. This combination beats the industry average. The minimum deposit requirement for this account is set at $2000.
Professional traders can use the broker’s Virtual Private Server (VPS) hosting, which is free for funded accounts with at least $2000 and 20 lots of traded volume per month. The service facilitates ultra-fast execution speeds (below 5 milliseconds) and stable internet connectivity.
Additionally, BlackBull Markets provides FIX API protocols for Direct Market Access (DMA), allowing traders to obtain the most competitive spreads directly from an exchange’s order books.
Professionals can also utilize BlackBull’s TradingView platform, which has extremely detailed charting capabilities and accommodates the execution of sophisticated technical analysis. Alternatively, they can use its cTrader platform, which has advanced automated trading capabilities. Experienced algo traders can use it to program sophisticated trading algorithms.
Pros and Cons
Pros
- Fast execution speeds
- DMA trading
- Competitive raw spreads
- Diverse instruments offering
Cons
- Elevated overnight fees
Best Low Spreads
4.5
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
- $200Min Deposit
- 2245Tradable Instruments
- LowFees
Why We Picked It
Established in 2007, IC Markets has become the ‘go-to’ forex broker for high frequency, high volume traders who prioritize zero fees, zero requotes and access to raw, interbank market spreads. Authorized and regulated by ASIC, CySEC, SCB, and the FSA Seychelles, you can trade with ECN pricing from the MT4, MT5, and cTrader platforms.
Key Features:
- ECN account options:
Standard ECN Pricing Account. Zero commission. Spreads from 0.6 pips.
Raw Spread ECN Pricing MetaTrader Account. Commission of 3.50 USD per lot, per side. Spreads from 0.0 pips.
Raw Spread ECN Pricing cTrader Account. Commission of 3 USD per lot, per side. Spreads from 0.0 pips. - Leverage:
CySEC and ASIC entities – up to 1:30 for retail clients and 1:500 for professional clients.
SCB and FSA Seychelles entities – up to 1:500 for all clients. - Trading platforms: MT4, MT5, and cTrader.
- Tradable instruments: 61+ FX pairs, 25+ stock indices and 28+ commodities, and a wide range of stocks.
From my research, I found that IC Markets offers an ECN pricing model that sources pricing from external liquidity providers with prices passed on with no dealing desk execution. This allows the broker to provide ultra-fast execution of speeds under 40ms with deep liquidity. According to the broker’s ASIC-regulated entity, it processed 1.2 trillion USD in trading volume in March 2023.
Having traded with IC Markets on a live account before, I can attest to the competitiveness of the broker’s fee structure and speed of execution. During the course of our live fee test, I found the spread for EUR/USD during the London and New York session averaged 0.65 pips for its commission-free trading account.
This is much better than the industry average of 1.0 pips. Traders can access even lower spreads from the Raw trading account but this will charge a commission per trade of 3.50 USD per lot, per side for MT4 and MT5 which is in line with the industry average.
If you truly want the lowest fees possible then you may consider using the cTrader platform with IC Markets, as this charges a commission of only 3 USD per lot, per side which is much more competitive.
As IC Markets tailors its services to algorithmic traders who need fast execution, low spreads, deep liquidity and zero requotes, it makes it a top broker for those interested in low fees.
Pros and Cons
Pros
- Low fees, zero spread, zero requote accounts.
- ECN pricing model with deep liquidity.
- Good selection of trading platforms.
- High leverage for some regions.
Cons
- Trading platforms have a learning curve.
Best for Tradable Instruments
4.2
80.26% of retails CFD accounts lose money.
- $100Min Deposit
- 10107Tradable Instruments
- HighFees
Why We Picked It
Established in 2013 TMGM is a Sydney-based broker that provides ECN trading on forex and access to more than 12,000 instruments covering indices, commodities, cryptocurrencies, and global stocks. The broker is authorized and regulated by ASIC, VFSC, and FMA New Zealand.
Key Features:
- ECN account options:
Classic Account. Zero commission. Spreads from 1.0 pips.
Edge Account. Commission 3.50 USD per lot, per side. Spreads from 0.0 pips. - Leverage:
ASIC entity – up to 1:30 for retail clients, 1:500 for professional clients.
VFSC entity – up to 1:500 for all clients. - Trading platforms: MT4 (forex, indices, commodities) and IRESS (stocks only).
- Tradable instruments: 56+ FX pairs, 20+ indices, 20+ cryptos, 5+ commodities, 10,000+ shares.
If you are interested in trading forex ECN while also gaining access to a wide range of other markets then TMGM is a broker to consider. From my research, I found that through the MT4 trading platform, you can trade on 56 major, minor, and exotic currency pairs using ECN pricing and execution, along with 20 indices, 20 cryptos, and 5 commodities.
The IRESS trading platform provides DMA (direct market access) to 10,000+ global shares from the USA, Europe, the UK, and Asia. The platform allows you to access the order book of the stock exchange and provides Level II market depth.
During the live fee test, I found the spread for EUR/USD during the London and New York session averaged 0.9 pips which is below the industry average of 1.0 pips for a commission-free trading account.
Pros and Cons
Pros
- 12,000+ tradable instruments.
- ECN execution for forex pairs.
- DMA execution for stocks.
- Trading Central, Market Sentiment Tool.
Cons
- The lowest minimum deposit for an IRESS account is $5000.
How to choose a forex ECN broker?
Now let’s delve into the specific factors that traders must consider when seeking a reliable forex ECN broker.
How to choose a safe forex broker for ECN trading?
Safety should be your top priority when choosing a forex ECN broker. To ensure a secure trading environment, you should consider the following factors:
Regulation: Make sure that the broker is regulated by a respected financial authority. This will provide you with a level of protection in case the broker becomes insolvent or engages in fraudulent activities.
Reputation: Look for brokers with a good reputation in the industry. You can find this information by reading online reviews and different trading forums.
Security of Funds: Check if the broker keeps client funds in segregated accounts. This means that your money is kept separate from the broker’s own funds. You should also check if they offer a negative balance protection policy so your account doesn’t go below zero on a black swan event and if they are part of a compensation scheme to protect your capital if they become insolvent.
A competent broker typically displays this information on their website as it serves as a significant attraction for potential customers. If this information isn’t readily available, it may raise a red flag. In such cases, you can verify the details by consulting the relevant regulatory authority’s online register.
Alternatively, you can delve into the broker’s legal documents. If they don’t mention their segregated accounts, negative balance protection, and compensation schemes, it’s probable they’re not implementing them, so you should better sidestep such companies.
The role of regulatory agencies in this landscape is absolutely vital. They ensure the safety of forex trading activities and maintain stringent standards of ethical conduct.
Read more about Best regulated forex brokers.
What fees should you expect with ECN accounts?
When trading with an ECN broker, you should consider two main types of fees: trading fees and non-trading fees.
Trading fees are costs associated with executing trades. They include:
- Spreads: This is the difference between the bid (buy) and ask (sell) price of a currency pair. ECN brokers typically offer the best spreads as the ECN model means price quotes are coming directly from multiple liquidity sources and the interbank market.
- Commissions: ECN brokers often charge a commission on each trade. This is usually a fixed amount per lot traded, which is 100,000 units of currency.
- Swaps. This is a fee to hold a leveraged position overnight and is based on the interest rates of the currency pairs you are trading and a broker markup.
Check out our guide on best lowest spread forex brokers.
Non-trading fees are costs not directly related to trading. They include:
- Deposit/Withdrawal Fees: Some brokers charge fees for depositing or withdrawing funds from your trading account.
- Inactivity Fees: If you don’t trade for a certain period, some brokers may charge an inactivity fee.
Trading fees should be 100% transparent on the broker’s website – especially if the broker is regulated by a good quality financial regulator. If they are not, then you need to check the broker’s terms and conditions for any potential surprises.
What to consider when choosing an ECN broker?
Choosing the best Forex ECN account depends on your individual trading needs and goals. Here are some factors to consider:
- Trading Platform: Check if the broker offers a reliable and user-friendly trading platform. MetaTrader 4 and MetaTrader 5 are among the most popular platforms in the industry.
- Account Types: Check if the broker offers different types of ECN accounts. Some brokers offer accounts with different levels of spreads and commissions, which can be suitable for different types of traders.
- Customer Service: Good customer service is essential, especially for beginners. Ensure the broker offers prompt and helpful customer service by testing their live chat or reading FX Empire’s in-depth broker rating reviews in which the reviewer tests the customer service quality for you.
- Tradable Instruments: If you trade other markets such as stocks, indices, commodities or cryptos then check if the broker provides access to these products from the same account and trading platform.
What is the best leverage with ECN accounts?
Maximizing positions without requiring a large account balance is possible thanks to the concept of leverage in CFD trading. While this financial product may create bigger returns for investors, keep in mind that high amounts of leverage will increase both profits and losses.
Brokers authorized and regulated by tier 1 regulators such as the UK FCA, ASIC, and CySEC are restricted to offering leverage on forex up to 1:30 for retail clients.
While some offshore brokers may offer leverage on forex up to 1:500 or more, it is because they are not regulated by a top financial body and provide fewer protections for retail traders.
What is the best trading platform to use with ECN accounts?
Determining the ideal ECN account trading platform depends on your personal preferences and trading demands. There are a variety of trading platforms available to traders but the gold standard for forex trading has always been MT4 and MT5.
Check out our dedicated guides on best MT4 brokers and best MT5 brokers.
While the MT4 and MT5 desktop platforms require a bit of a learning curve for beginner traders, they do come packed with lots of features so it is worthwhile investing time to learn them.
To start off with, beginner traders may find the MT4 and MT5 web or mobile trading apps easier to use. But check if the broker also offers their own web-based platform, which could be even easier to navigate and trade from.
Here are our picks of best forex trading platforms.
What to avoid when choosing a forex broker for ECN trading?
When choosing a forex broker for ECN trading, avoid brokers that:
- Are not regulated. Unregulated brokers may not adhere to the standards and practices set by financial authorities. This can put your funds at risk.
- Have wide spreads. Wide spreads can significantly increase your trading costs and reduce your potential profits. By the very nature of an ECN account, the spreads should be very low.
- Charge hidden fees. Some brokers may have hidden fees that can eat into your profits. Always read the broker’s fee structure carefully which you can find from its terms and conditions.
How to avoid forex and CFD scams?
Keep these tips in mind to avoid a forex and CFD scam:
- Use a regulated broker. Regulated brokers are monitored by financial authorities and are required to follow strict rules and regulations.
- Do your research. Before choosing a broker, do thorough research. Read online reviews, check the broker’s background, and make sure they have a good reputation in the industry.
- Beware of unrealistic promises. If a broker promises high profits with little risk, it’s likely a scam. Remember, there’s no such thing as a guaranteed profit in forex trading.
Our Methodology
We employed an advanced proprietary methodology, yielding results that positioned the listed brokers as leaders in our tests. Since 2010, FXEmpire has pioneered the in-depth evaluation of forex and CFD brokers, continually refining a process involving hundreds of reviews over the years. We have examined over 250 data points in our broker analyses, providing confidence in your platform selection.
For a holistic view, each broker is evaluated by the following nine core categories:
- Trust
- Fees
- Platforms and tools
- Tradable instruments
- Customer service
- Deposit and withdrawals
- Account types
- Research
- Education
In our individual broker reviews, we demystify complex areas, like regulatory status, for easy understanding of fund safety and guaranteed benefits.
Data collection involves live testing, research, detailed questionnaires, and broker demonstrations. We open an account with each broker, primarily examining one entity’s services while using the standard account type and platform. We also conduct live tests of spreads and measure overnight swap fees and account-related costs.
Our comparative analysis highlights a broker’s competitiveness in the industry and the usability of their trading platforms, saving you the time it takes to master these tools.
At FX Empire, we adhere to strict editorial integrity guidelines. Scoring is largely based on measurable data, maintaining objectivity, and eliminating individual biases. Our review process is independent, follows a rigorous protocol, and includes repeated fact-checking, as reviews are continuously updated. Further details on our review process can be found here.
For this guide, we verified the ECN account offerings of every broker, focusing on their pricing and execution. We preferred brokers who maintain competitive prices and execute trades swiftly and accurately. In addition, we examined the number of liquidity providers from which brokers sourced their pricing, rating highly those who demonstrated consistently superior performance in this area.
We also prioritized brokers who offer low trading commissions and fees. Furthermore, we assessed the array of trading services, products, and instruments offered by these brokers. The accessibility of different trading platforms was another consideration, with preference given to brokers that provide a variety of user-friendly, feature-rich platforms catering to different trading styles and requirements.
Meet Our Writers
The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.
Get to Know Our Authors
Dan BlystoneBroker Analyst
Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.
Jitan SolankiBroker Analyst
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
Plamen StoyanovBroker Analyst
Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.
Vladimir ZernovBroker Analyst
In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.
What is an ECN account?
An ECN account is a type of trading account that provides pricing directly and anonymously from multiple liquidity sources (usually the interbank market) you can execute trades at the best possible price without any broker intervention.
How does an ECN trading model work?
The ECN trading model works by connecting traders directly with liquidity providers and the interbank market so they compete for your price. Traders using an ECN account often benefit from competitive pricing, potentially tighter spreads, and the ability to see the depth of the market.
What advantages does an ECN account offer to forex traders?
The key advantages of an ECN account include deep liquidity, variable spreads, fast execution, and transparency in pricing.
What is a liquidity provider in relation to ECN accounts?
Liquidity provider refers to a financial institution, such as a bank or a non-bank financial entity, that supplies liquidity to the ECN network. Liquidity providers play a crucial role in the functioning of ECN accounts by offering buy and sell prices for various financial instruments. When a trader places an order through an ECN account, the broker routes the order to the liquidity providers in the network. The liquidity providers then provide pricing and execute trades based on the orders received. They ensure that there is sufficient liquidity in the market to match the orders from traders, facilitating the smooth execution of trades.
Are there any minimum deposit requirements to open an ECN account with your forex broker?
The minimum deposit requirements for opening an ECN account can vary depending on the forex broker. Each broker sets its own minimum deposit criteria, which can range from a few hundred dollars to several thousand dollars.
What are the typical spreads and commissions associated with trading on an ECN account?
Spreads on an ECN account are variable and can be tight, especially during high liquidity periods, while widening during low liquidity or volatile market conditions. ECN accounts typically involve commission charges on top of spreads, which can vary based on factors such as the broker, account type, and trading volume. Most brokers offer a forex ECN account with spreads from 0.0 pips and an industry average commission of 3.50 USD per lot, per side.
Is there any limit on the number of open positions or the volume of trades on an ECN account?
There isn't typically a limit on the number of open positions or the volume of trades on an ECN account but it does depend on the liquidity of the market and the time of day you are trading. Every broker has different conditions so be sure to check their terms and conditions before opening a trading account.
Can I use automated trading systems, such as Expert Advisors, on an ECN account?
ECN accounts are generally compatible with automated trading strategies, including EAs, as they offer direct market access and fast trade execution.
What trading instruments are available for trading on an ECN account?
ECN accounts typically offer a wide range of trading instruments, including major, minor, and exotic forex currency pairs, commodities, indices, shares (equities), and cryptocurrencies. However, the specific availability of trading instruments may vary between brokers.
Do ECN accounts offer additional order types or trading features compared to other account types?
An ECN account is a form of pricing and execution. The order types or trading features will be dependent on the trading platform you use.
How fast are order executions on an ECN account?
Order executions on ECN accounts are generally the fastest of any account type due to direct access to liquidity providers.
Is a demo account available for ECN trading?
Yes, many brokers offer demo accounts for ECN trading, allowing you to test out their services and products.
Are scalping and hedging available on an ECN account?
Yes, scalping and hedging strategies are generally available on an ECN account. ECN accounts are well-suited for these strategies due to their direct market access and fast trade execution.
How do I fund my ECN trading account?
Funding an ECN trading account can typically be done via bank transfer, credit card, or e-wallets, but it depends on the broker's policy.
What trading platforms are compatible with ECN accounts?
ECN accounts are typically compatible with advanced trading platforms like MetaTrader 4, MetaTrader 5, and cTrader, or the broker’s own proprietary trading platform.
Can I trade cryptocurrencies on an ECN account?
Some ECN brokers may offer trading in cryptocurrencies, but it varies by broker. However, the true ECN liquidity will not be as high as the forex market as there are not many regulated crypto exchanges to provide ECN pricing.
What is the difference between ECN, STP, and Dealing Desk brokers?
The difference between ECN, STP, and Dealing Desk brokers is in the execution model. ECN execution connects traders directly to liquidity providers who compete for your price, STP execution sends orders directly to the market at the market price, while Dealing Desk brokers create a market for their clients.
What is the difference between ECN and Market Maker?
The difference between ECN and Market Makers lies in the trade execution. ECN accounts connect traders directly to the interbank market. Market makers set both the buy and sell prices and create the market you trade on.
What is the difference between ECN and standard accounts?
ECN accounts provide direct market access, fast trade execution, and variable spreads based on liquidity. Standard accounts, on the other hand, typically involve execution through the broker's dealing desk with fixed spreads. ECN accounts offer more transparency, potentially tighter spreads, and direct interaction with liquidity providers, while standard accounts provide simplicity and consistent spreads.
Why is an ECN account more suitable for professional traders?
ECN accounts are more suitable for professional traders because they provide direct market access, transparency, and advanced trading tools. Professional traders benefit from faster execution, potentially tighter spreads, and the ability to implement sophisticated trading strategies such as scalping and high-frequency trading.
About the Author
Jitan SolankiBroker Analyst
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
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