ECN Forex Brokers


ECN Brokers

  • ECN brokers pass your trades to an ECN pool, in which other liquidity providers(banks, hedge funds, brokers, individual traders) become a counterparty to your trade.
  • All participants (banks, market makers and retail traders) trade against each other by sending competing bids and offers into the system.
  • Allow clients’ orders to interact with each other.
  • Orders are matched between counter parties in real time.
  • Participants get the best offers for their trades available at the time.
  • Only variable spreads
  • Makes money only through commission. ECN brokers do not make money on spreads(bid/ask difference).
  • Display the Depth of the Market (DOM) in a data window. Traders can show their order size and other traders can hit those orders. Then can see where the liquidity is.

ECN Benefit

  • Anonymous trading environment.
  • Straight through processing with banks liquidity.
  • All trading styles are welcome
  • Interbanks prices and spreads. Greater number of marketplace participants means tighter spreads.
  • Greater price transparency, faster processing, increased liquidity.

Read more: Forex Broker Types: ECN vs DMA vs STP vs Market Maker

Dukascopy Bank SA

Company: Dukascopy Trading Technologies Corp.
Note: Dukascopy Bank SA (In Switzerland) is regulated by the Swiss Financial Market Supervisory Authority FINMA both as a bank and a securities dealer.   Dukascopy Europe(in Latvia) is not regulated as a bank or a securities dealer  and is not regulated by FINMA.