Aspects to take into account when choosing an ECN Broker
When choosing an ECN broker, it's essential to consider several factors to ensure a satisfactory trading experience. Below are some key aspects to consider before selecting an ECN broker:
Regulation: The broker should be regulated by a reliable regulatory entity, preferably in a recognised jurisdiction in the financial world. This ensures that the broker complies with specific standards and regulations that protect the interests of traders and maintain the integrity of the financial market.
Trading technology: ECN brokers usually offer advanced technology that allows traders to access interbank prices and execute trades in real time. Ensure your broker offers a stable, fast, easy-to-use trading platform that suits your needs and preferences.
Transaction costs: ECN brokers charge commissions for each trade executed through their platform. Make sure you fully understand the transaction costs of the broker you're considering, including commissions and spreads, to avoid surprises that may affect your profits.
Variety of financial assets: Choose a broker that offers a wide variety of financial assets you're interested in trading. This will allow you to diversify your portfolio and exploit trading opportunities in different markets.
Customer support: Choose a broker that offers good customer service, with support in multiple languages and communication channels such as live chat, email, and phone. It's important that you can contact the broker at any time you need assistance or have questions about your trading account.
Finally, when choosing an ECN broker, it's critical to compare several brokers to find the one that best suits your needs and provides a satisfactory and profitable trading experience.
Below are the top 3 ECN brokers in the current market, taking into account their main characteristics, regulation, variety of financial assets, customer support, and user reviews.
An ECN broker is a type of broker that offers direct market access and greater transparency in the execution of its clients' trades.
Discover in this ranking the best ECN brokers. Our analysis and weighting includes information on regulation, variety of financial instruments, customer support, and user reviews.
BEST ECN BROKERS
How do ECN Brokers work?
Brokers ECN use an electronic communication network to connect traders with other market participants, including banks, investment funds, and other traders. Through this network, traders can access a transparent and real-time market depth and trade at competitive prices that reflect current market conditions.
When a trader sends an order to buy or sell a financial asset, such as a stock, a currency pair, or a futures contract, and specifies the price to an ECN broker, the following occurs:
The order is sent to the ECN network, and the broker or liquidity providers will seek counterparties for the transaction in the market. It is automatically executed if a matching buyer or seller is in the network and a confirmation is sent to the trader.
If no counterparty is available, the order is placed on the ECN order book and held until a counterparty is available to execute the trade. In some cases, the broker may offer a partial execution of the order, in which part of the order is executed at the requested price and the other part is left pending to execute at a different price.
Once a counterparty is available, the order is fully executed, and the corresponding confirmation is sent.
In general, sending orders and their execution takes place within seconds or milliseconds.
For more info on ECN Brokers, check out this article.
IC Markets is one of the largest Forex brokers in the world and has won several awards for its excellence in financial services. It is regulated by the Australian Securities and Investments Commission (ASIC) and offers various financial assets, including over 60 currency pairs, indices, stocks, cryptocurrencies, and commodities.
In addition, it has a fast and efficient trading platform and provides high-quality customer service. This Australian broker is well-known for its fast execution and low spreads, starting at 0.0 pips.
IC Markets offers various financial assets, including Forex, CFDs, indices, commodities, and cryptocurrencies. The broker also provides excellent customer support 24/5 through live chat, email, and phone.
Based on user feedback, IC Markets has an average rating of 4 in our Consensus Rating.
This broker is Australian and is another leading broker in the Forex market, offering a wide variety of financial assets, including over 70 currency pairs, indices, stocks, cryptocurrencies, and commodities. It is regulated by ASIC and the UK's FCA, ensuring the safety of clients' funds.
Pepperstone offers low spreads starting at 0.0 pips, as well as a diverse range of financial assets, including Forex, CFDs, indices, commodities, and cryptocurrencies. Their trading platform is user-friendly and offers a wide range of trading tools. Additionally, they provide excellent customer support, with an average user rating of 4 in our Consensus Rating.
AND THE WINNER IS...
Fxview is a forex and CFD broker based in Cyprus, regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Sector Conduct Authority South Africa (FSCA). Fxview offers access to various financial assets, including forex currency pairs, commodities, indices, and cryptocurrencies. Traders can trade in over 70 forex currency pairs and over 500 CFDs on commodities, stocks, indices, and cryptocurrencies.
Regarding cost, Fxview charges a commission of $1 per side, regardless of the instrument you are trading. Spreads with Fxview always remain low, even during high volatility hours.
In conclusion, Fxview is a reliable and regulated ECN broker that offers an advanced trading platform, a wide range of financial assets, and high-quality customer service. And most notably, it is considered a cost leader.