Forex ECN, or Forex electronic communication network, is the network of Forex traders and brokers. Forex ECN was created due to the widespread availability of internet access and home computers. This system allows for live streaming of Forex market activity and trade results online. The system relies on an online connection between ECN forex broker from different locations, from large banks to large Forex traders to individual Forex traders. Because the ECN system is direct, there is no need to connect with potential traders. The seller can view the order immediately and execute online trades. The ECN system matches trade order to active trading markets.
ECN systems allow orders to be processed instantly. ECN brokers offer better spreads and this is a huge advantage for traders. You can also enjoy the anonymity of an ECN Forex broker for execution of trades. The market is constantly changing so viable trades are always available, even during volatile times.
ECN markets allow for flexibility in trading, as orders can be handled of any size. ECN brokers won’t bid against you. ECN brokers can also use trading platform software, but it will be more user-friendly than other systems as it was designed for broker use. A demo Forex trading account is another perk offered by an ECN broker. This allows you to get familiar with the ECN system as well as the broker before you can start trading in the real market.
A Forex ECN broker can be your agent in multiple capacities. Not only can he buy and sell foreign currencies, but he can also search for buyers and sellers and place bids on behalf of you. In the same way, multiple liquidity sources can be used to fulfill purchase obligations.
ECN brokers cannot influence market prices or availability. An ECN broker may charge a commission or a fee for their online services. It would be worth your time to have an ECN broker act for you. ECN brokers can help you get better trade prospects. You should exercise caution when trading Forex or ECN. The Forex market can be volatile and trades that are executed without proper planning or execution could result in a loss.