ECN Broker All Forex brokers offer the same service to traders - TopicsExpress



          

ECN Broker All Forex brokers offer the same service to traders – Online Forex trading – but they differ in their order execution and pricing methods. ECN stands for Electronic Communications Network, and an ECN broker offers its client direct access to other participants in the currency market. ECN brokers link their clients to tier-1 liquidity providers, this link is done through using sophisticated technology setup known as the Financial Information Exchange Protocol (FIX Protocol). This means that the orders made by clients are delivered to the liquidity providers, and the broker obtains liquidity from the liquidity providers and makes it available to the clients. The fact that ECN brokers use multiple liquidity providers allows them offer tighter spreads to their clients, something which is impossible for non ECN brokers. Usually ECN and STP brokers go hand in hand. STP is straight through processing meaning trading orders go directly to the market without a dealing desk. An ECN broker matches trades between market participants and therefore the broker itself cannot bet against its clients, something that non STP or ECN brokers are usually accused of. ECN brokers make their income through commission fees which are taken from the transactions done by the clients. The fee per transaction gets higher the more volumes are traded by clients. There are many benefits to trading with an ECN broker. With ECN market execution is done instantly and goes straight to the market, meaning orders are final and confirmed as soon as they are dealt. Clients trade on the global liquidity of world class banks and qualified financial institutions. And lastly clients get tighter spreads, which are variable meaning they can change depending on the price movements which can be a good thing as they could get lower than they originally are. FxNet Team FxNet Ltd is a global, fully licensed Over the Counter (OTC) online Forex and commodities broker, regulated by the Cyprus Securities and Exchange Commission (CySEC). FxNet is located in Limassol Cyprus. FxNets mission is to reach and retain traders around the globe through exceptional customer service, integrity and continuous innovation that will provide our clients with simple, exciting and secured trading platforms. fxnet/news/ecn-broker
Posted on: Tue, 28 Jan 2014 14:42:01 +0000

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