The advent of the internet paved the way for Forex to be traded online. The development of the same relative to connectivity, upload/download speed, and security of information made it necessary to develop a system for ECN Forex brokers, traders, and other major players. This article will discuss the basics of the ECN in Forex with particular emphasis on brokers.
Who are the Best ECN Forex (Brokers, Traders, and Other Major Players)?
Electronic Communications Network (ECN) is the system that controls the upload and download of data relevant to the Forex market. This means raw data on market activity, analyzed data relevant to raw data, market results, any other information relevant to Forex (i.e. political, economic, legal developments). This is stored and accessible via internal and external networks whether wired, wifi, cloud, etc. The result is that information is available to players in the field of Forex 24/7. This is accessible via desktops, laptops, tablets, smart phone, smart TV, mass media, etc.
Who are the Best ECN Forex Brokers?
The common misconception is that an ECN broker is the so called “middleman”. This is not true, because the middleman in a conventional sense of the word has been eliminated by the ECN, in that investors have direct access to Forex traders and the former can issue commands or view results real time. In reality an ECN broker is the person or the group of persons that work with the electronic system. Their job is to match orders to buy and sell from banks and lenders with orders from Forex traders.
Why Hire the Best ECN Forex Brokers?
There are several reasons why you should consider hiring an ECN broker. This includes but is not limited to:
- ECN brokers allow you to get better spreads on each transaction.
- Some players prefer anonymity and by hiring an ECN broker you are assured of the same.
- ECN Brokers allow a trader to handle trades of different sizes.
- ECN brokers may have access to information relevant to your trades but will not bid against you.
- Demo accounts are also available via ECN brokers; therefore, you can practice using ECN in a controlled environment before going live.
- ECN brokers provide the trader with a high level of liquidity since the same matches customer orders with banks.
- A broker using ECN to fill a trader’s order does not get involved in the buy and sell prices.
How to Find the Best ECN Forex Brokers?
The easiest answer would be to get in touch with another trader or a banking institution you have done business with who can recommend reputable ECN Forex brokers. However if you want to increase your choices you may want to search for one online. Remember the best ECN brokers are tied up with reputable banking and Forex related institutions. If you have an existing online account you can inquire about ECN brokers. Make sure to request for a demo or trial account in order to familiarize yourself with the functionalities before going live.