market"s and can execute trades immediately without dealer intervention is what makes the platform STP. Consider These Factors To Choose The Best ECN Forex Brokers. Fixed spreads are only available through market making brokers. Increased spreads, lack of accuracy in price"s, platform manipulation, and other unethical trading behavior contributed to a less-than-favorable trading environment, which led to the rise in popularity of ECN Forex brokers. How an STP broker earns its money? It is a technology used by brokers to connect their clients directly with the liquidity providers of the Forex market. Most major currency pairs are known to have 0 pip spread during highly volatile trading conditions, which does keep the costs down for a majority of traders. They don't profit on spread difference.
Jump to: Who are the Real ECN Forex Brokers?How to Choose the Best ECN Forex Broker?
ECN Forex brokers operate on an entirely different protocol, which reduces the conflict of interest between a trader and a broker significantly.
Real-time liquidity does have its drawbacks, which can result in excessive slippages during low-volatile market conditions.
Hence, traders must be aware.
ECN Forex brokers - the largest list of ECN /STP Forex brokers from USA, UK, Canada, Australia.
ECN accounts have no conflict of interest, are cheaper due to the spreads, and have high liquidity for all categories of traders. Does it work smoothly, or does it have problems freezing up? This might not matter so much to you if you only intend to deposit a relatively small amount of money that is not very important to you. However, if you are going to be leaving trades open for only minutes or hours but making many more trades, the spreads become a more influential factor, and overnight financing may not be an issue at all. Maximum Cap On Leverage/Higher Minimum Margin Requirements: It is impossible for ECN Forex brokers to offer higher leverages, although some Forex brokers may offer relaxed rules on the minimum trading capital requirements. The market maker or STP brokers, on the contrary, have higher spreads and dont charge any commissions or fees for transactions.