Complete Guide to ECN Account: What is Forex ECN Accounts?

Non-dealing desk forex or NDD brokers use technologies without a dealing desk to directly connect clients and liquidity providers. NDD brokers do not sell any re-quotes when an order needs to be filled, and they can be STP or ECN brokers. IC Markets offer one of the widest choices of funding methods of all forex brokers, and they do not charge any fees for deposits and withdrawals. MT4 is a logical choice for traders as it’s the most popular trading software. Most brokers offer the platform as it offers a range of financial instruments and easy to use interface.

On the ECN account, you will be trading from 0.0 pips variable spread plus $7 per round turn lot. For the purpose of describing how your market orders are routed to market, it is worthwhile to concentrate on specialised forex trading and business jargon. An ECN account can be the best option for you if you’re a frequent trader looking to improve volume. However, if cost is more important to you than speed, remain with a regular account. A few of the benefits of trading using an ECN broker have already been mentioned above.

Difference between ECN and STP broker

IC Markets RAW ECN pricing account spreads compare extremely well when we compare spreads with other brokers using similar trading execution. The comparison below compares the spreads of different brokers using average spreads published. CTrader trading platform offers a different trading experience to MetaTrader so you would choose this platform if you prefer this platform over MetaTrader. Another major feature to focus on is the broker’s regulatory compliance.

If you are trading from outside the UK or Europe, you will be trading with a broker using FSC. It is important to understand risks when trading with a broker using an offshore regulator. As you can see in the comparison (which is updated each month), FXTM avg spreads are actually a fair bit higher than 1.3 pips.

Forex Standard Account vs ECN Account

Remember that the additional cost is one of the main reasons some traders cannot make enough profits. This also applies to any leveraged product due to leverage amplifying the risks of trading. This type of trading account is similar to the MetaTrader Raw Spread account.

IC Markets pass these prices to you without any requotes or dealing desk intervention. All accounts offer 24/7 customer support with dedicated customer service teams in Sydney (Australia) and Limassol (Cyprus). You can contact IC Markets via live chat on their website, via phone or by email. The customer service and features above make IC Markets the best low-fee forex broker.

Markets

IC Markets charge a commission for each trade you do rather widen the spread. The pursuit of transforming a modest investment into a substantial sum attracts both seasoned traders and daring novices. Ultimately, the possibility to double your Forex account in a month exists. An ECN broker is usually a No Dealing Desk (NDD) broker, which means that the clients’ orders do not pass through a Dealing Desk, which enables execution in a direct connection between the parties. While the FCA, CySEC, and FSP are tier 1 or tier 2 regulators, the FSC is a tier 3 regulator which means the level of regulation (compared to other major regulators) is much lower.

The difference is that it is for traders using cTrader rather than the MetaTrader Trader Platform. If a trader chooses the cTrader trading platform, the commission structure is also different. The IC Markets Raw spread account offers ECN pricing if you are using the MetaTrader Trader Platform.

What Are The Typical Spreads For The RAW Spread Account?

Straight Through Processing or STP, brokers pass orders from the client directly to a liquidity provider, often a third party. Electronic Communications Network or ECN brokers match client orders for trade execution. Whether a novice or an expert trader, you always need a reliable broker. The hunt for a broker does not end at their certifications and regulations; it goes beyond that. There are different types of brokers, and if you wish to trade successfully, you should choose yours wisely. There are several advantages of an ECN forex account that can highly benefit forex traders.

An ECN (electronic communication network) account is an electronic version of a standard account; it has similar features and functionality. However, unlike a standard account, an ECN uses a third-party matching engine that matches orders in real-time. When you are totally new in the forex market, it may be hard to get your head around all of the different account types that are available to you as an individual trader. ECN Account provides access to the full market depth, allowing traders to see the available liquidity at different price levels. Traders can place orders at specific prices within the market depth, potentially leading to improved order execution.

Advantages of ECN Account

You find this account offers some of the tightest spreads in the online forex industry. To keep tight spreads, IC Markets charges a commission of AUD $7.00 or ecn account vs standard USD $7.00 round turn. Enjoy favorable trading conditions with the AximTrade ECN brokerage services; especially when it comes to margin and leverage levels.