Electronic Communication Networks (ECN) are computer networks that are proprietary in nature and are used by Forex brokers as a repository for securities for sale in the foreign exchange market. ECN’s provide traders with instant listings from reputable banks or Forex related institutions within which to trade. This also allows traders to access information relative to Forex listings 24/7 via internal and external networks. The goal of this article is to provide information to help traders find the best ECN Forex broker.
Best ECN Forex Broker: Anonymity
Some traders prefer to keep their identity a secret. This is because a trader’s identity and affiliation may serve as a “tell” to other traders or dealers. A trader’s precise specialization, platform, tactics, trading styles, etc. can be used by a dealer or by other traders in mirroring the move or preventing a play. ECN brokers provide anonymous transactions when buying and/or selling. This is because account information as well as historical data relevant to your plays are not disclosed or even traced. Perfect for traders or players who want anonymity!
Best ECN Forex Broker: Trade or Make a Market
ECN brokers allow a trader to work as a trader or create a situation which is conducive for a specific strategy a.k.a. be a market maker. This can be done via different plays such as making several bids or spreading your trades. This is perfect for Forex players who do not only want to be controlled by the Forex market but who want to influence the same. Of course, within legal limits or at least within gray areas.
Best ECN Forex Broker: Execute Your Plays
Execution is maximized two ways. The first is because it removes from your plate unnecessary acts and/or worries. Remember you are not dealing with the broker but with the forex network he/she provides. The second is because ECN accounts provide demo accounts that allow a trader to sharpen their skills in a controlled environment before releasing the same into the forex floor.
ECN is especially helpful when the market is volatile. This is because ECN brokers allow you to trade in different platforms with any number of forex listings. This means your potential for profits increases. Of course, this is dependent in large part on how well you have read the market.
Best ECN Forex Broker: You are not Tied Up
ECN brokers allow you to trade in different spreads. This is especially helpful during short spurts of activity conducive to profit. Picture this, you are fed with continuous information relevant to different currency pairs with various spreads. Of course this depends upon the actual volume traded and liquidity to support the trade. This effectively provides you with information from several sources both raw and analyzed in order to come up with your own conclusions.
In Closing
ECN Forex brokers increase your chances to get information to make a profit in the foreign exchange market. In effect you get to pick from the best action that is available out there. Now all you have to do is read the charts, determine the indicators, and make your play.
