Forex broker comparison ecn

ECN Forex Brokers.

ECN brokers (Electronic Communication Network brokers) are among the fastest emerging brokerages in the Forex world, and there's no question that new ECN brokers are opening their doors regularly. In short, ECN Forex brokers provide a marketplace where traders and market makers can place competing bids against each other. Minimum deposits for ECN accounts are often higher than they are with standard Forex accounts, but there are several significant advantages offered by the best ECN brokers, such as the ability for scalping and lower spreads.

With so many attractive options to choose from, choosing between different ECN trading options can be surprisingly difficult. Compounding the decision is the fact that many traditional brokers offer ECN accounts in addition to their standard trading accounts, which widens your pool of options.

To make your decision easier, we've compared critical aspects of some of the top ECN brokers to give you a starting point in your search for the best ECN Forex broker.

More info about ECN Forex Brokers.

. So what is an ECN Broker?

Recent years have seen many new Forex brokers open their doors as ECN brokers. ECN stands for “electronic communications network” and sometimes brokers of this type are also referred to as “STP brokers” (STP stands for “straight through processing”) or “no dealing desk” (NDD) brokers. All these terms mean approximately the same thing: clients’ trades are executed by matching them with other clients or 3rd party counterparties who wish to take the other sides of the trades. Non-ECN brokers, in contrast, take the other side of the trade themselves, creating a large and obvious conflict of interest with their clients. They are typically referred to as “dealing desk brokers” or “market makers”.

ECN brokers typically charge lower spreads than market makers, which they compensate for at least partially by charging additional commissions on trade entries and exits which is calculated as a fixed percentage of the total value of the trade. Despite these fees, the combination of spread and commission is usually at least a little lower than the spread charged on a similar trade by non-ECN brokers.

It is this combination of lack of conflict of interest plus the typically low cost of trading that makes ECN brokers so attractive to traders, but there are some other factors worth considering before you decide that an ECN broker, or an ECN account (some brokers offer both ECN and dealing desk type accounts) is for you.

Account size – ECN brokers usually require higher minimum deposits. A few insist on minimum trade sizes as high as 1 minilot instead of the 1 microlot (one tenth of a minilot) that has become more standard within the Forex industry.

Execution – ECN brokers typically offer excellent execution speed and sometimes spreads are even non-existent or inverted for a second or two. Note that during periods of very low liquidity execution may be seriously delayed as there is no market maker to take the trade if no client wants it. This can lead to seriously negative slippage events or being stuck in a bad trade a little longer than you would be if trading with a market making broker. These events often tend to occur at major news releases especially when the result differs from the market’s consensus expectation.

Spreads – these are usually an attractive feature, even when commission is considered. However, spreads can widen dramatically and can sometimes be beyond what market maker brokers will be offering at the same time. Spreads will of course vary a lot as they are based more precisely upon market supply and demand. Fixed spreads are only available through market making brokers. They are rarely worth it economically, as it happens, but that is another story.

Choice of Instruments – as ECN brokers need to be sure they are truly plugged into a market’s liquidity before they can credibly offer trading in that market instrument, market making brokers are often better situated to offer a wider choice of instruments, especially in individual stocks and shares, commodities, and various types of indices. Additionally, ECN brokers tend to require higher minimum trade sizes in these kinds of non-Forex instruments. This means that if you want to be very diversified, you might have another reason to consider using a market making broker in addition to or as an alternative to an ECN broker.

Maximum Trade Size – ECN brokers usually offer much higher maximum trade sizes, as they (at least theoretically) do not have to worry about processing any order through a dealing desk. For example, some dealing desk brokers won’t let you buy or sell more than 5 lots at once. ECN brokers, if they specify maximums, tend to place them at much higher levels.

Minimum Trade Size – ECN brokers used to commonly require higher minimum trade sizes of 1 minilot (0.1 full lots), compared to the 1 microlot (0.01 full lots) that was typically required by dealing desk brokers. Although an increasing number of ECB brokers do now allow trading in microlot sizes, a few still do not, so it could be an issue if you prefer to trade in microlots.

Who are the “Real” ECN Forex Brokers?

We’ve seen the reasons above why ECN Forex brokers are increasingly popular. We’ve noted that more and more brokers are advertising themselves as ECN brokers, or at least offering ECN-type accounts. There is a lot of controversy around the question of whether many of these brokers are “real” ECN brokers. So, what is a “real” ECN broker, and how can you tell when one is telling the truth?

A true ECN broker is simply defined as a broker that plugs your orders into a network where it is automatically matched to a matching order from another client or liquidity provider. This is the textbook definition to work from. Most brokers claiming to be ECN brokers are probably telling the truth about this at least, although if you see large spreads, spreads that never seem to really vary, or continuously slow execution, they are almost certainly not.

The more sophisticated problem arises when we ask what qualifies as a “liquidity provider”? If it is just another dealing desk, then how can it be a “true” ECN offering? The network is only as good as its source. To be regarded as a real ECN broker, the liquidity provider should really be a tier 1 bank. We must wonder how often this is really the case, and why many brokers that advertise themselves as ECN brokers are so tight-lipped about which liquidity providers they use!

When the first ECN brokers started appearing, bank traders started to ask how orders for minilots (let alone microlots) could possibly be sent straight through to tier 1 banks for processing. Bank traders will tell you that at this level, trade sizes are usually in minimums of ten or so full lots. This suggests that an ECN broker offering smaller minimum trade sizes must inevitably perform a “bucketing” of orders, and that would require a kind of dealing desk to process and allocate the bucketing.

The final question is, does it really matter? If a broker is at least trying to match orders directly, there is not much of a conflict of interest, potential or otherwise. If you benefit from a low cost of trading and relatively fast execution, then why not be happy with what you have got. Just don’t be under any illusions as to what is probably going on behind the scenes.

How to Choose the Best ECN Forex Broker?

Choosing an ECN broker is not very different from choosing any broker. There are not many special factors to watch out for at ECN brokers that differ from what should be the usual considerations.

When choosing any Forex broker, you should start from how much money you want to deposit, what kind of instruments you want to trade, how often you want to trade, and where you are located. Beginning with these three factors, you should be able to eliminate several brokers from your list of candidates. The good news is that brokers that don’t meet minimum standards of acceptability in one area are usually the same ones that won’t meet required standards in other areas also, so it becomes easier to eliminate them.

Starting with location, you might feel more comfortable with a broker located in your own country (or a nearby country), or is in a country that speaks the same language as your or which has a similar legal system. If you are a U. S. resident, you have special issues to consider as the U. S. is quite restrictive in Forex trading and if you must be onshore you have little choice, but it makes your choice easier. If you live in the United Kingdom, you might want a U. K.-based broker that offers spread betting format for tax reasons so you won’t have to pay any tax on any winnings. This is probably the easiest place to start and helps you narrow down the list considerably right away when choosing a Forex broker.

The next step to consider is regulation and the safety of your deposit. 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. If not, though, this is a very big issue. Some countries have a well-developed culture of financial regulation enforcement, which is always reassuring, and are just not places where the big fraudsters can thrive. Another big issue to consider is whether any protection is offered on your deposit. For example, at the time of writing, the United Kingdom government protects everyone’s deposit with any regulated broker up to a maximum amount of GBP 75,000. This means that if you deposit that amount or less with a broker regulated by and based in the United Kingdom, if they steal from you or cheat you or even just go bankrupt, you should eventually receive your deposit back from the government there. This is a significant advantage, and provides a lot of reassurance. If your deposit is a significant sum, you should seriously question whether it is wise to deposit it anywhere that does not offer government-backed deposit protection. You also should be biased towards reputable financial centers and away from tiny islands you never heard of before!

The third factor to think about is the cost of trading. These days, there is no reason why anyone with a significant amount to deposit should put up with a total spread and commission equaling more than 1 pip on the benchmark EUR/USD Forex currency pair. One way to compare spreads is to open demo accounts at each of your candidate brokers to see what their spreads really are. One potential problem with this strategy, however, is that brokers have been known to make conditions in their demo accounts, including spreads, significantly better than those which prevail in their real money accounts. Fortunately, there are a few websites which compare the spreads of real money accounts in real time across a range of different brokers, so looking here is going to be a good idea.

Another serious factor to consider in choosing a broker is your style or intended style of trading i. e. how many trades you usually make. Are you or are you going to be a scalper, day trader, swing trader or position trader? If you are making few trades but leaving your positions open for several days or even over weeks and months, you should consider how competitive are brokers are in terms of their overnight financing rates which are generally charged each day against positions left open at 5pm New York time. For position traders, these rates can make more difference to overall profit and loss than the spreads charged, at least up to a point. 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. This means that of two Forex brokers, one might be the most economical choice for you as an intraday trader, but not as a longer-term trader holding positions overnight.

The next thing to consider is the broker’s trading platform. Does it work smoothly, or does it have problems freezing up? It is easy, intuitive and pleasant to use, or not? Does the execution work in a manner that suggests the Forex broker is a true ECN broker or something close to it?

Finally, you can think about the issues that brokers’ advertising likes to focus on, but which are really the lowest of your concerns. Bonuses and other beneficial promotions could be interesting, but check the small print: accepting a bonus, deposit or otherwise, can mean you will be unable to withdraw a certain amount of your deposit until you have made a minimum number of trades.

One good think about choosing ECN brokers is that they tend to aim at a more sophisticated market than market-making brokers, meaning that you probably will not have to worry about misleading terms or hard sells. The most professional brokers of all sometimes have poor advertising and customer service, but they may be offering you the best ECN brokerage deal possible.

Additional Reading.

Thinking of switching from a traditional broker to an ECN Forex broker? Discover the differences between market makers (aka standard Forex brokers) and ECN brokers, and determine which one can meet your current trading needs. Read more.

ECN brokers require higher trade volumes than most other Forex brokers, but they do allow scalping and excellent spreads. Read on to learn if an ECN Forex broker is right for you. Read more.

Looking to enjoy the benefits of ECN Forex trading with the convenience of the MetaTrader 4 platform? This article explores the advantages and disadvantages of the MT4 ECN Forex platform. Read more.

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Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Best ECN Forex Brokers.

Top 5 ECN Brokers.

Top 4 ECN Brokers.

Top 5 ECN Brokers.

* No Deposit, T&C apply.

ECN brokers are very popular in the Forex world these days, mainly due to the increased conflict between Market Maker Forex brokers and traders that have led to losses to the tune of billions of dollars for investors located across the globe. ECN is a widely accepted Forex trading protocol, known as the Electronic Communications Network (ECN), which serves as a central electronic system for market participants to exchange orders through a centralized clearing platform. ECN trading involves connecting traders, brokers, banks, and other market entities to a global liquidity pool, where different financial instruments such as stocks and currencies change hands without the involvement of a central exchange.

History & Relevance Of ECN Forex Trading.

The modern aspect of Forex trading from mainstream FX trading companies is generally geared towards the retail trading market, which involves offering Forex brokerage accounts to small traders that invest only a small amount of trading capital when compared to the industry bigwigs. Intuitional Forex trading involves direct market access trading, where all orders are performed at the interbank level. Therefore, to accommodate the needs of smaller retail traders, Forex companies started adopting the market maker trading protocol, which worked on matching traders’ orders through an internal dealing desk. Market Maker brokers became an instant hit among retail investors, primarily due to the small capital outflow and an insane amount of leverage that facilitates trading on margin. Market maker brokers were able to offer trading accounts for as low as $5 trading capital, which were supported by leverage as high as 1:3000. Together with the rise in popularity of online trading platforms during the early part of the 2000s, Market Maker protocols were considered to be at the pinnacle of online Forex trading. However, Market Maker brokers had their distinctive disadvantages, which includes the high cost of trading (spreads) and an increased conflict of interest between a broker and the trader. A market maker acts as the counterpart to a trader’s order, and it is up to a broker to decide whether they wish to pass on the opposite end of an order to other traders, or absorb them completely. Such a situation gave rise to market manipulation, where brokers purposefully created adverse trading conditions to ensure that the company profits from their clients’ losses. Increased spreads, lack of accuracy in price quotes, 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.

Understanding The Concept & Operating Structure Of ECN Forex Brokers.

ECN Forex brokers operate on an entirely different protocol, which reduces the conflict of interest between a trader and a broker significantly. Active traders and professional investors always make it a priority to trade on ECN or Direct Market Access (DMA) protocols, in order to enjoy higher liquidity and better transparency in pricing. To understand the concept of ECN trading in detail, you will need to understand how Forex brokers operate in the markets. A Forex broker is a market intermediary that acts as a link between an investor and the market. The primary responsibility of a Forex broker is to facilitate a transaction at market price, where the underlying instrument can include Forex currency pairs, stocks, commodities, indices, metals, and ETFs. Brokers may adopt numerous trading protocols, platforms, and environments to ensure that they can offer market access to their clients using the best account packages. In reality, Forex trading, or investing in any other financial market in general, does require a high amount of trading capital. Forex trading was only included in the speculative investment category in recent times, as FX trading primarily involved exchanging currencies for meeting debt, purchasing goods, and paying for services through a global forum. However, once speculators and investors started understanding the benefits of betting on price movements, Forex trading quickly gathered momentum in the retail trading market. Such a rise in popularity led to the creation of market maker Forex brokers that allowed its clients to speculate on the volatility of the currency markets. Market maker brokers are also known as dealing desk brokers, where all orders are transmitted through a company’s dealing desk. Market maker brokers would act as a counterparty to a trader’s position, by absorbing the opposite end of their clients’ orders. Essentially, if a trader is long on the EUR/USD, the broker would sell the pair in the market to hedge its position against market volatility. At times, market makerFX brokers may also be able to pass its orders internally to other clients, by matching two traders who wished to buy and sell a currency pair with similar lot requirements. Although market maker brokers became a hugely popular and a common occurrence in the Forex market, traders began to realize that FX trading companies were not all that honest in their approach to their trading services. Fraudulent and dishonest brokers were using several means to trick their clients by offering incorrect price feeds, manipulating the platforms, and by trading against its clients to ensure that their traders lose their money in the markets. Therefore, dealing desk brokers earned a vast amount of negative reputation in the market, as coupled with the risks and volatility of the markets, Forex traders started losing a significant portion of their trading capital.

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The Introduction Of ECN Platforms On FX Trading.

The ever-rising risks involved in trading with dealing desk brokers forced traders into exploring alternative options in the market that did not have any conflict of interest. Therefore, ECN Forex trading began to take root in the market, which basically provided a conflict-free trading environment that allowed traders to access the market liquidity through a global liquidity pool. An ECN trading network is comprised of global liquidity providers such as banks and interbank exchanges, where the price is freely floated according to the depth and liquidity of the markets. ECN Forex brokers make use of advanced trading protocols by connecting traders to ECN servers that are connected to a global liquidity pool, which gives access to live price feeds and market orders. An ECN network is an open network, which allows traders to get real-time information on the market liquidity, pending orders, open orders, and live market quotes that have the best spreads due to the increased presence of both retail and institutional traders. Orders are executed at market price, where positions are filled based on price settlement. The constant volatility of ECN networks, along with the presence of large market players ensures that traders can open a large position in the market without the worry of any requote. However, trades may be susceptible to instant price fluctuations, which can lead to slippages, and in other cases, partial order fills. Real-time liquidity does have its drawbacks, which can result in excessive slippages during low-volatile market conditions. Hence, traders must be aware of the different aspects of ECN trading before committing themselves to the risks of the market.

The Main Points In Support Of FX Trading With ECN Forex Brokers.

Low Spreads – ECN trading aggregates price from different liquidity providers and traders in the market, which keeps the spreads extremely competitive. 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. High Liquidity & Volatility – ECN networks have the highest liquidity in the markets that is capable of filling any order of any magnitude. Of course, while orders are filled at the market price according to the existing volatility, ECN trading does guarantee orders to be filled at market price, without any requotes or order rejections. No Conflict Of Interest – ECN trading is performed over a No Dealing Desk trading protocol, which provides direct market access trading for investors. All orders are passed directly to the market, which is filled at the existing market rates that prevent any conflict of interest between a broker and the trader. Transparency In Pricing – ECN provides transparency in pricing, along with the ability to read the market liquidity and the depth of the market. ECN traders can receive real-time information on all the market orders, which is one of the primary reasons why ECN traders have reported to enjoy far more flexibility in ECN accounts than market maker accounts. No Dealer/Broker Intervention – The absence of a dealing desk means that a broker cannot interfere with their clients trading strategies. An ECN broker cannot manipulate the price, tamper with the platform, or create unfavorable trading conditions, thereby offering the best trading conditions for ECN traders. Perfect For Large Traders – ECN is more often the preferred trading protocol for large traders and institutional investors, due to the direct market access trading conditions and the reduced conflict of interest. Larger traders can also benefit from competitive spreads and better pricing, which contribute to a low-cost trading environment.

The Risks & Cons Of ECN Forex Brokers.

Commission Of Trading – ECN Forex brokers charge a nominal commission for trading, which is either charged as a percentage of the trading amount or as a fixed fee for a lot traded. Sometimes, ECN FX trading companies may also incorporate their commissions into their spreads, which may prevent traders from enjoying zero spread trading. ECN brokers receive their revenue from the commission, and traders are expected to factor in the commission to their trading before opening or closing their positions. Slippage – ECN networks have significant volatility, which can see the price changing by tens or even hundreds of pips within a fraction of a second. Since there isn’t any dealer-specific restriction on trading during volatile conditions, traders may experience significant slippages that can either be positive or negative. In certain cases, slippages can be highly risky, particularly if a trader uses high leverage for trading. No Fixed TP/SL – One of the main allures of market maker brokers is the ability to trade using fixed trading conditions such as guaranteed take profit and stop loss. However, in ECN trading, the markets are on a consistently volatile trading scenario, which cannot guarantee that orders are filled at predetermined levels. Therefore, traders will have to be proactive in ensuring that they have manual control over their trading accounts in case their fixed predetermined trading levels are not triggered. High Capital Requirement – ECN trading is not suitable for smaller traders, as direct market access conditions warrant for a higher trading capital. Most ECN Forex brokers will stipulate a higher minimum trading capital, which makes it out of reach for the average trader. Nevertheless, traders may be able to find ECN brokers that do not require higher trading capital, especially by registering for an ECN account at our recommended Forex brokers.

How To Understand The Authenticity Of ECN Forex Brokers?

While ECN Forex brokers have been primarily known to offer high-quality trading services, there are a huge number of scam brokers in the industry that offer a regular market maker account on the pretext of an ECN account offering. In some cases, Forex brokers may also offer an STP (Straight Through Processing) protocol, which is nothing but a hybrid of the market maker and ECN account protocols. Therefore, as a trader, you should have a precise understanding of the different ECN features before choosing an ECN Forex broker. Here are some of the standout features of an ECN FX trading account:

DMA Trading: ECN allows direct market access trading that does not involve any type of interference from the broker. The broker does not use either a manual or automated dealing desk, and as a result, all orders are filled at market price at the existing liquidity. ECN accounts do not face any issues of order rejections, requotes, or cancellations. Competitive Spreads At The Expense Of Commission: All ECN accounts offer highly competitive spreads that even guarantees 0 pip spreads for major currency pairs. Therefore, ECN companies will charge a commission, which can either be included in the spreads as a markup or involves a fixed fee for the number of lots traded. The market maker or STP brokers, on the contrary, have higher spreads and don’t charge any commissions or fees for transactions. Market Depth Information: ECN traders are connected to a global liquidity pool, where traders have access to information such as market depth and liquidity. Traders can witness the real-time orders taking place through their platform, which is unavailable through a regular market maker or STP account. Slippages & Partial Fills: Market volatility is a key ingredient of ECN accounts, which is why traders will have to account for significantly higher slippages than those witnessed in market maker or STP accounts. Liquidity of the markets may also lead to partial fills off orders, where the orders are filled according to the market depth. 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. Normally, a majority of ECN dealers will have a mandatory minimum capital requirement that will begin at $1000, although it is not uncommon for FX brokers to offer ECN accounts for a lower trading capital such as $5.

Consider These Factors To Choose The Best ECN Forex Brokers.

If you want to find the top ECN Forex brokers, we can offer you some advice and direction that will help you to refine your search and make a choice much easier. Look for the following factors in an ECN Forex brokers to ensure that you find a reliable and top ECN Forex broker:

You might have found out your perfect ECN broker that offers an excellent trading account with the best features, but your broker is only as reliable as the safety of your funds through proper regulation. Ensure that the broker of your choice is regulated by a dependable authority, one who stands by the investors by protecting them from broker scams and fraudulent practices. Strong regulation will not only ensure a reliable trading environment, but it will also provide you with long-term security and safety of your trading capital.

The fact that so many STP brokers claim to be ECN Forex brokers makes it even more important for the best ECN Forex brokers to have a good reputation. A broker should have an excellent reputation with its past and present clients, while it should have mostly positive reviews in online customer forums. A well-established Forex broker with many years of experience in the market, along with a good amount of positive reviews from existing customers is an excellent choice. However, new Forex brokers may also be able to provide a good quality Forex account, as they may be able to cater to the modern requirements by garnering positive reputation from new age traders.

– Original & Innovative Trading Features.

The more unique features an ECN Forex broker has in comparison to the rest of the ECN competition in the market, the better. Brokers may come up with innovative trading features and great resources such as trading tutorials, live news feeds, market analysis, and trading signals, all of which can contribute to an excellent user experience. Of course, ECN brokers may also offer advanced trading tools such as VPS, which will further enhance your trading environment.

The top priority for any trader should be to determine the reliability and performance of a trading platform before investing their time and money into an ECN Forex Brokerage. ECN brokers usually provide tried and tested ECN platforms such as MT4 and the cTrader, while some brokers may offer branded or proprietary trading platform that connects traders to an ECN network. The MT4 terminal is designed primarily as a market maker platform, which requires ECN bridges to connect a trader to an ECN network. cTrader, on the other hand, is built from the ground up as a dedicated ECN platform. Therefore, browse through different platforms options and choose a trading software that is best suited to your trading style. You should also choose a platform that is worth your investments, as you should never choose an unreliable trading platform that can potentially erode your trading capital.

Special offers and promotions are one of the best features that can be offered by top ECN Forex brokers; however, you should never forget that bonuses are not the only thing that you should look for in a Forex trading company. Sometimes, a broker will give the wrong initial impression to gain a trader’s trust – for example; a dishonest and fraudulent ECN forex broker may offer very generous bonuses to mask their inefficiency and financial malpractices. On the contrary, several genuine Forex brokers are pretty honest in their bonus policies and trading conditions, which clearly outline the numerous terms that are associated with a trading account.

Why You Should Invest Your Money With Top Rated ECN Forex Brokers.

ECN Forex brokers have the best trading conditions that clearly provide an edge to the traders without any risk of broker or dealer intervention. ECN accounts have no conflict of interest, are cheaper due to the spreads, and have high liquidity for all categories of traders. ECN Forex brokers also offer several ECN account features that allow traders to take complete advantage of the markets. Therefore, if you are looking for safe and secure Forex trading, and if you are concerned about protecting your funds from broker scams, you should definitely try your hand at Forex trading with the best ECN Forex brokers.

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ECN Forex Brokers 2017.

ECN forex brokers are species of investment and online trading offering companies. Their distinction from regular forex brokers is figured out in cooperation with institutional liquidity providers to let retail customers the direct access to them; such brokerages provide a possibility of trading currencies without the participation of a dealing center. ECN broker provides a trader with access to various financial institutions and banks, as these technologies are embedded into the network of electronic communications of a dealing desk. ECN technologies are elaborated and sophisticated to ensure high internal liquidity, possibility of closing deals, internal rates' clearance. ECN forex brokers do charge commission for making deals, at that they offer certain advantages to their clients, such as no "chasing stops" and anti-scalping. The ecn brokers in the international currency markets are not excessively numerous and dominating, but there is the sufficient enough amount of them to offer a decent variety of possibilities. Our rating is proud to present to the international traders’ community a selection of ECN companies and top ecn brokers where any interested trader may well find a reliable ECN broker. Read our article "What is ECN?" to find out what opportunities ECN brokers provide their clients. ECN forex broker comparison tool provided by our rating is intended to help you to choose the best best ecn broker ever to trade with. ECN broker list grows perpetually as long as more and more brokerages start offering direct trading services to their customers. The reviews from real traders you can find at our forum will assist you to select best ecn brokers from the variety of those.

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Forex Brokers.

Due to the popularity of forex trading over the past decade, hundreds, if not thousands, of new forex brokers have flooded the market, all seeking your patronage. Our desire is to help you find out exactly which one of these brokers is the right one for you, thereby avoiding a potential nightmare from ever happening before you even get started.

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Table of Contents – 5 Step Guide.

Key Considerations when choosing a forex broker Step 1: Choose a trusted forex broker Trusted Forex Brokers Top List Step 2: The broker’s offer and services Step 3: What to watch out for Step 4: Other considerations Step 5: Checklist of features For non-US traders Concluding Remarks.

Forex brokers range widely from the highly reputable and well regulated firms like FXTM or AVA, handling many accounts honorably, to those engaging in questionable pricing and order execution practices, to outright fraud in some cases, like Refco, a highly publicized bankruptcy of a forex and commodities broker that attempted to hide $430 million in bad debts from investors and clients. Customer accounts were not held in segregated bank accounts and suddenly reverted to paying down other creditor claims. In other words, traders lost their money before they were able to make their first trade.

Consequently, it is basic common sense that all traders should take their time when choosing their most significant business partner, the one that will support their trading aspirations going forward – their forex broker. The process is called “due diligence” or “vetting a vendor” or whatever name you may wish to assign to the task, but urgency should not be a factor. When it comes to money, there is a criminal element in our society that will go to great lengths to deceive you. Significant research in advance will pay rewards. Take your time to find a forex broker that is worthy of your trust, before you ever send them any money.

There are many websites that can help you in your search process. The staff at Forextraders has reviewed many capable brokers and reduced the group down to a list of worthy candidates. The selection process begins by choosing a minimum of three possible brokers, and then following with an evaluation of each and whether they meet your needs. Even after you narrow the group down to one final candidate, you may want to start off slow with a small deposit and small trade positions to validate your initial findings. There is no reason to rush. There will always be trading opportunities around the corner.

Step 1: Choose a trusted forex broker.

Of course, the first and most important consideration when selecting a forex trading broker involves determining whether or not your funds will be secure in the broker’s hands.

There are four aspects you want to examine to make sure your money is safe: Domicile , Regulation , Reputation, and Funding .

If the domicile of your forex broker is in a major country with well-developed financial regulation, this legal infrastructure can often help you recover your funds if problems arise. Make sure to double-check the domicile of the company even if the address looks reputable. Sending your money to an online forex broker based in less well-regulated places like the Bahamas or Panama may not be in your best interests. Trying to exert your legal rights in a foreign jurisdiction can be a daunting task, especially if there is no regulatory oversight in the background to support your effort. Avoiding forex brokers with a dubious base of operations will actually help narrow down considerably the search for a reputable broker! And you want to save time, right?

Regulation.

The second security signal to check is whether the broker is regulated or not. You should be aware that opening an account with a forex broker who has taken the trouble to register with a regulatory agency – while a very good idea – will still not guarantee that the company is legitimate or that your trading funds are safe.

Nevertheless, by having a regulatory agency involved, a certain amount of recourse exists for a broker’s clients if the company files for bankruptcy or if other problems develop that put the return of your trading funds at risk. To conclude, you should always choose a regulated broker.

Reputation.

The third point to check out is the broker’s reputation. Be sure to check the Internet for either favorable testimonials or continuing complaints about the brokers you have chosen for consideration. Especially look for reviews and comments where traders have had difficulties in withdrawing their funds. If you see evidence of this, don’t waste any more time on this broker.

The fourth and last point when it comes to choosing a trusted broker involves the financial security of the broker. Your money will always be more secure in the hands of a forex broker with great financial backing. The broker should be well funded, or have a trusted owner or parent company. These supporting relationships are often disclosed on the broker’s official web site on tabs like “About Us” or “Press Releases”. Although all the top forex brokers represented here should be well funded, it is always a good idea to make sure one extra time. You may also want to visit the website for the regulatory body in the region. Regulators often publish annual statistics on the capital funding for their licensees and whether they are adequate or not. You will also want your broker to hold your funds in segregated accounts at Tier-One banks. Safety and soundness are key factors when dealing with a broker.

Use the chart below to compare forex brokers. Here you will find our top choices of brokers that you can trust with your money.

Top list of most trusted forex brokers.

- Over 400k Account Registered.

- More than 250 Trading Instruments.

- MT4, MT5 and Web Trader Platforms.

- Full ECN Trading Model.

- Active 10+ years.

- 40% New Member Bonus.

- Very well regulated.

- Support in 18 languages.

- Negative balance protection.

- Social Trading Platform.

- 24/5 Customer Support.

- Well regulated in over 3 continents.

- 24/5 multilingual Customer Support.

- Tightest spreads in the market.

- 15% new account opening bonus.

- MT4, MT5 and mobile trading platforms.

- Multi Asset Trading Platform.

- No Time Frame for Demo Accounts.

- Very well regulated.

- Dedicated Account Manager.

- 1 Million GBP Insurance by Lloyds of London.

- ECN Real Raw Spreads, 0.2 EUR/USD.

- Up to 1:500 leverage with micro-lots (0.01 size) available for everyone.

- Scalping, hedging, trading on the news, and EAs are permitted.

- 50% FTD Bonus! (non EU Traders only)

- Active since 2001.

- 300+ markets can be traded.

- Social Trading Features.

- Available in 25 languages.

- No Minimum Deposit.

- Very well established.

- 24/5 Customer Support.

- $30 + Deposit Bonus up to $5,000 (t&c apply)

- Very well regulated.

- 24 hour support.

- Forex Pais and CFD Trading.

- Cash back loyalty bonus. Earn up to £1.80 cash back per lot.

- Tight Spreads as low as 1.2 pips.

- No minimum deposit.

- Very well established.

- Daily s with market commentary.

- Automated mirroring service.

- One on one training.

- 24x5 customer support.

- 24/5 Customer support.

- Phone and live chat support.

- PAMM Accounts Available.

- Owned by the BetFred Group.

- Trade in 50 currency pairs.

- Very well regulated.

- BONUS: $4 cashback per lot traded till the end of the year.

- EAs, hedging and scalping allowed.

- ECN shop with the backing of several liquidity providers.

- Bilingual customer support 24x6.

- FXGiants has a proprietary interface to make its account funding process easier, fast and secure.

- Very well regulated.

- Order slippage on stop losses is generally minimal.

- Trade in over 50 currency pairs.

- No fees for deposit or withdrawals.

- Does both binary and forex.

- Low minimum deposit.

- Their own platform.

- No withdrawal fees.

- Three trading platforms.

- Bonus available(t&c apply)

- Their own platform and MT4.

- Attractive bonus promotions.

- Dedicated account manager.

- Various FTD bonuses.

- No dealing desk executions.

- Account management for traders on varying experience levels.

- Many Deposit and Withdrawals options.

- Forex pairs and CFD trading.

- Tight spreads as low as 1.2 pips.

- Over 130 assets.

- CopyMaster social trading platform.

- Permits scalping hedging, EAs.

- Very well regulated.

- Withdrawal request approved within 24 hours.

- Negative balance protection.

- 24 hour support.

Want to be featured in this Broker list?

Send to: brokers[]forextraders.

Note that a high degree of leverage can work against you as well as for you.

• Leverage over 50:1 for majors and 20:1 for minors is not available to traders in the U. S.

• As indicated in the list, only NFA regulated brokers are available to U. S. customers.

* Brokers offer variable spreads which means that the spreads are subject to current market conditions.

If you want to get some more basic information on brokers, and more information on different regulatory bodies that provide oversight for forex brokers as well as articles that dig deeper into the different aspects on choosing a forex broker that we talk about on this page, you will find that in our forex broker tips section.

Step 2: The broker’s offer and services.

After you have found a broker that you think you can trust with your money, it is time to look at the offer and services you should expect from your broker.

My top list of things to check out include the following:

1. Spread Margins.

Forex brokers usually charge a commission on deals by taking part of the bid offer spread, so the tighter their spreads, the more money the trader saves. If your preferred trading strategy is more active than most, then spread margins will be more important for you.

2. Execution of orders.

Speed is really important when it comes to execution of orders. You should test his speed and effectiveness with a demo account with the broker you have chosen. More on demo accounts later. In some cases, the demo account may not be a good barometer. You should also check other online reviews to find out if there are “slippage” problems or constant re-quotes from the broker. If the speed and effectiveness is not there, then choose another broker!

3. Check out the trading platform.

You need to determine the ease of use and reliability of the broker’s trading platform, in addition to the quality of the online market information offered by the broker to its clients. Does the platform need to be downloaded, as with Metatrader4, the most popular and widely used platform on the market? Some downloads are easier than others. Is the platform a proprietary design? This situation may be good or bad. Demo testing can help here, as well. It is not always easy to decide the best forex trading platform since it depends on your needs. Are you on the go and need to access your account via an iphone or Android device? Some brokers support mobile trading. Others do not.

Remember, the forex market is open 24 hours a day almost 6 days a week, if you count from the opening of the week in Sydney Monday morning until closing in NY Friday afternoon. See the forex market opening times. Different time zones can impact the accessibility of customer support services. If the broker’s support crew is on one side of the globe and you are on the other, you might need support from your broker on a 24-hour basis. We highly recommend that you choose a broker with 24-hour support.

These were our four most important points to review when accessing the capabilities of your prospective broker. It also helps to be aware of the pitfalls that can occur in the forex industry. Here are a few tips that could alert you to the possibility of questionable business practices and help you to easily discard prospective brokers on your short list.

Step 3: What to watch out for.

Beware of Unusual Trading Rules.

Beware of forex brokers with arcane trading rules, such as giving you a minimum time to hold a position or denying you to “pip hunt”.

Beware Outrageous Marketing Claims.

There are unscrupulous brokers that will attempt to attract your interest with marketing claims that seem too good to be true. In most cases, be suspicious of claims of high returns, super tight spreads, and professional support that will help you make a fortune in forex trading. Competition is high, and many brokers will say anything to get your initial deposit. Be wary and skeptical. You are your first line of defense when it comes to preventing fraud.

Avoid Brokers That Requote.

Requoting is the situation where your trading platform shows a certain price, and then when the trader goes to deal on it, the platform makes them wait, and then shows them another often worse price.

Excessive slippage on stops.

Slippage occurs when an order, usually a stop loss, is not executed by a forex broker at the rate at which it was placed. Instead, the order is filled at a rate that is usually worse than originally intended by the trader.

Front running orders.

Front running means that the broker may be holding an order for an especially large commercial transaction and might trade it ahead of or “front run” the order to make money at the client’s expense.

Step 4: Other considerations.

You will want to read the prospective broker’s official website and any documents thoroughly to get clear on both their terms and operational rules of the road.

We also suggest you give their customer support a test call. You will want to assess the helpfulness and market expertise of the customer service department when assisting you in getting started trading or in case a problem arises. Brokers that fail to answer questions or that put you on hold when you try to call in are best avoided.

Withdrawals and Deposits.

Make sure that the forex broker’s withdrawal and deposit policies agree with you. Some brokers charge exorbitant fees for bank or wire transfers, while some will even take PayPal.

Also, some brokers can make you wait an agonizingly long time to withdraw your funds. Make sure you have this information before you give them your money.

Make use of bonuses.

Make sure to check out the prospective broker’s bonus offering. Often they will provide you with some kind of extra bonus with your first deposit. Some of them also offer other types of bonuses for you as a loyal customer. Make sure to understand the terms and conditions connected to the bonus.

What type of account to use?

There are demo trading accounts and live trading accounts. We always recommend that you start trading with a demo trading account to check out the trading platform. But you need to understand that there are differences between demo and live trading.

When you are ready to open a live account we recommend that you start trading with a micro account first.

Step 5: Checklist of features.

The following list presents many of the more desirable features and services offered by forex brokers. We have already covered many of these in the above discussion, but not all. This list will help you prioritize your personal needs.

Competitive dealing spreads Fast and reliable executions Mobile phone trading support Automated trading support Dependable order execution on stop loss orders Minimal slippage on stops Easy deposits and withdrawals Sign up bonuses and promotions Trading in a wide array of currency pairs Trading in other markets such as gold, silver and crude oil Low initial deposits Instructional material for novice traders Personalized trading strategy and market advice Economic calendars Reuters or AP/Dow Jones financial newswires Forex expert market commentary Calculators and trading tools Technical analysis tools Charting software Size of dealing lots High leverage accounts Competitive rollover fees.

Most of these services can be obtained through a variety of online retail forex brokers, so it is up to you to determine what services you consider important for your personal trading needs. Your goal is to select the broker that best suits your personal trading needs.

Concluding Remarks.

As you might expect, the larger the forex broker, generally the more services the broker can make available to their clients, the tighter their dealing spreads, the more reliable their trading platform and the faster their transaction executions are likely to be. Thus, in general we recommend that you choose one of the larger brokers.

Any qualified forex broker will provide you with a reliable trading platform, 24-hour customer support during forex trading hours, charting and technical analysis tools, access to quality forex news and commentary, competent order execution, competitive dealing spreads and a wide choice of currency pairs to trade. Brokers offering any less than this basic package should not be considered in the selection of a forex broker, since today’s market offers a broad blend of online retail forex brokers for your consideration.

Performing adequate due diligence on the front end on your prospective forex broker, before making your first trade, can literally save you thousands of dollars and prevent nightmares from ever happening down the road. Finding the right broker for you and your trading needs is your top priority. Invest the time that this task requires, and you will never regret it.