What is an ECN Broker?
An ECN broker is an Electronic Communications Network (ECN) broker that provides access to the global financial markets. ECN brokers are typically used by professional traders and investors who need direct access to the interbank market. ECN brokers provide access to the best bid and ask prices from multiple liquidity providers, allowing traders to take advantage of the tightest spreads and best execution prices.
History of ECN Brokers
ECN brokers have been around since the early 2000s, when the first ECN brokers began to emerge. These brokers were designed to provide direct access to the interbank market, allowing traders to take advantage of the tightest spreads and best execution prices. ECN brokers have become increasingly popular over the years, as they provide traders with direct access to the interbank market and the ability to trade with no dealing desk intervention.
ECN Broker Comparison
| Broker | Minimum Deposit | Spreads | Commission |
|---|---|---|---|
| Broker A | $500 | 0.2 pips | $2 per lot |
| Broker B | $1,000 | 0.1 pips | $3 per lot |
| Broker C | $2,000 | 0.0 pips | $4 per lot |
Summary
ECN brokers are a type of broker that provides direct access to the interbank market, allowing traders to take advantage of the tightest spreads and best execution prices. ECN brokers have become increasingly popular over the years, as they provide traders with direct access to the interbank market and the ability to trade with no dealing desk intervention. For more information about ECN brokers, traders can visit websites such as Investopedia, Forex.com, and FXCM.
See Also
- Forex Broker
- Market Maker
- Interbank Market
- Liquidity Provider
- Spread
- Commission
- Order Execution
- Dealing Desk
- No Dealing Desk
- STP Broker
