What is the best ECN forex broker?

[SweetAnalyst]

Hi, I wonder if what are the other ECN forex brokers existing in the market?
I would like to share a conversation on how it gain success on forex trading.

 

[bigmistake]

How do you define the best ECN broker? Please advise.

 

[gerryg]

Hi, I wonder if what are the other ECN forex brokers existing in the market?
I would like to share a conversation on how it gain success on forex trading.

What do you mean under ECN brokerage? No market-making? Liquidity from several LP's? Traders often confuse this notion as they heard somewhere that any quality brokerhouse should be featured with ECN, but don't understand what are its advantages.

 

[alextrader79]

You can find the info on the brokers' websites.
There may be some honest information sometimes Why sometimes? The majority of marketmakers tell people they are ecn , but in fact they even don't have liquidity providers (I won't tell the names, but you will meet such companies while researching).
I chose the one I work with as they HONESTLY told about a mixed business model. People who want to trade on ecn do it, people who don't care choose classic or cent accounts

You may also ask the support. But read reviews and forums prior to choosing a company

 

[gerryg]

You can find the info on the brokers' websites.
There may be some honest information sometimes Why sometimes? The majority of marketmakers tell people they are ecn , but in fact they even don't have liquidity providers (I won't tell the names, but you will meet such companies while researching).
I chose the one I work with as they HONESTLY told about a mixed business model. People who want to trade on ecn do it, people who don't care choose classic or cent accounts

You may also ask the support. But read reviews and forums prior to choosing a company

They do provide information that they may act as a counterparty on some instruments. Just lurk into Нotforex ToS. Although I'm quite comfortable with market makers too.

 

[SweetAnalyst]

You can find the info on the brokers' websites.
There may be some honest information sometimes Why sometimes? The majority of marketmakers tell people they are ecn , but in fact they even don't have liquidity providers (I won't tell the names, but you will meet such companies while researching).
I chose the one I work with as they HONESTLY told about a mixed business model. People who want to trade on ecn do it, people who don't care choose classic or cent accounts

You may also ask the support. But read reviews and forums prior to choosing a company

Thank you Alexander! I agree with you, where in fact there are a lot of unreliable companies existing which offers promising services yet getting bad reviews.

 

[alextrader79]

They do provide information that they may act as a counterparty on some instruments. Just lurk into Нotforex ToS. Although I'm quite comfortable with market makers too.

Of course, everything depends on WHAT kind of marketmaker it is

 

[alextrader79]

Thank you Alexander! I agree with you, where in fact there are a lot of unreliable companies existing which offers promising services yet getting bad reviews.

Such situations are widespread and no one is insured, unfortunately...

 

[Raynold]

How do you define the best ECN broker? Please advise.

Yeah, that's interesting point. I am also interested to learn a lot about this matter.

 

[Fill_Or_Kill]

CapMar.

Unfortunately they won't be accessible to you unless you have at least £250k to trade.

But you did ask...

 

[gerryg]

I'm really amused to read those comments where people have no clue about consistently winning trading but demand something that won't help them at this stage. I would say they rationalize their impotence in trading blaming brokers for it. That's incorrect approach, imo.
Start from yourself before you can really know what are your requirements for ideal broker.

 

[Fill_Or_Kill]

I'm really amused to read those comments where people have no clue about consistently winning trading but demand something that won't help them at this stage. I would say they rationalize their impotence in trading blaming brokers for it. That's incorrect approach, imo.
Start from yourself before you can really know what are your requirements for ideal broker.

Gerry, Gerry, you're such a cynic. As an experienced trader would you advise someone to practice on a spread marked up by 500% or by using a proper OTC matching engine with the underlying spread and paying commission? If you had the choice?

It strikes me that effort spent beating the Euro on a 1 point spread is something of a waste of time. I also have no idea how anyone scalps on such a spread, consistently. Presumably nobody actually does it for a living.

 

[gerryg]

Gerry, Gerry, you're such a cynic. As an experienced trader would you advise someone to practice on a spread marked up by 500% or by using a proper OTC matching engine with the underlying spread and paying commission? If you had the choice?

It strikes me that effort spent beating the Euro on a 1 point spread is something of a waste of time. I also have no idea how anyone scalps on such a spread, consistently. Presumably nobody actually does it for a living.

Well first of all I wouldn't call myself experienced, still learning hard to earn those pennies

Second is, you are carrying the case to the extreme. Competition in the broker market is a primary catalyst for service improvements and playing dirty quickly turns well-established business footing into walking on the rope.

Thirdly, not blaming myself in my mistakes means lose the opportunity to learn. Exculpating myself blocks the path of self-development, so you have to be in constant process of picking holes in yourself.
That's my philosophy

 

[Agne35]

I don’t have any problem with MM or ECN unless the broker is well regulated. I believe it is your trading style which is more important. I won’t go if that broker has no FCA regulation and well market reputation. No authority has the same degree of trust as FCA does!

It would be very tough to compare between ECN brokers by trading environment. Most of the ECN brokers offer lighting fast execution and no requote these days. However, I prefer ECN broker with lower commission for my Scalping. I switched to a ECN broker called Tickmill and I am happy so far.

Actually, I am a Price Action trader in daily chart but as you know market turmoil is very high recently. Nobody knows what Mr.Trump is going to do next with Syria and Russia. France election is playing vital role as Le Pen wants Frexit, OPEC is next and so much more.

I switched to my scalping strategy unless these changes and lower spread ECN is vital to scalp.

 

[gerryg]

I don’t have any problem with MM or ECN unless the broker is well regulated. I believe it is your trading style which is more important. I won’t go if that broker has no FCA regulation and well market reputation. No authority has the same degree of trust as FCA does!

It would be very tough to compare between ECN brokers by trading environment. Most of the ECN brokers offer lighting fast execution and no requote these days. However, I prefer ECN broker with lower commission for my Scalping. I switched to a ECN broker called Tickmill and I am happy so far.

Actually, I am a Price Action trader in daily chart but as you know market turmoil is very high recently. Nobody knows what Mr.Trump is going to do next with Syria and Russia. France election is playing vital role as Le Pen wants Frexit, OPEC is next and so much more.

I switched to my scalping strategy unless these changes and lower spread ECN is vital to scalp.

Ok so how did you figure out that your broker is ECN? Any distinguishing features you can share with newbies?

 

[Agne35]

Ok so how did you figure out that your broker is ECN? Any distinguishing features you can share with newbies?

To be honest it is very tough to identify a True ECN broker. But I have experience trading with few ‘ECN by Association’ brokers like FXCC. I have had experience with them multiple fake candles! I have screenshot.

First point is, a scam broker won’t ask you twice for verification but Tickmill ask me twice to send my documents. I had to provide my Passport and rejected my ID card! (No FX broker did before, I have open account with more than 20 brokers with this ID card!) They wanted a paper scan (after providing the digital pdf)! I believe this is a great sign.

I traded the rumor of today (Trump threaten N.Korea) , I had 4 short at USDJPY and all of them was close in positive slippage! ( one of them was 3 pips), Nobody does that unless a true ECN. Never found re-quote! And you can set SL anyway you like no minimum PIP requirements. And they offer no big offers which is a big sign of a good ECN broker.

Hope this will help newbies. Hope they will ignore those broker who offers so much free stuff.

 

[progix]

Hope they will ignore those broker who offers so much free stuff.

I think new traders should make some thorough research before finalizing any reputed broker because it is becoming much difficult to find a decent broker these days.

 

[gerryg]

I think new traders should make some thorough research before finalizing any reputed broker because it is becoming much difficult to find a decent broker these days.

What are the criterions you can suggest essential for valid research on a broker?

 

[Ereson]

Sometimes I see someone about saying true ECN broker . what is actually True ECN ?

A true ECN is a system that allows routing your trade to another member of the ECN.
The vendor or agency that provides the software (and sometimes hardware) could be a neutral broker or just a technology provider agency. If is a neutral broker their commission per transaction should be very low. They won’t take the other side of your trade and might offering you to deposit with them but as extra services. You can find all quoted prices and venues to route your trades and should get some notion of the transaction outcome before the pending order get place, so it will be for example a slippage event, you will know exactly the different among prices, that can occurs ( due markets condition at the day, venue notify that slippage event can occur, so the trader will not be surprised if they dont get filled in the price the want to deal) since the venue (a brokerage house, broker dealer, an exchange or another trader) will post in the pre trade book.
If is a retail ENC there is a little blur due ENC are most popular and flexible in the wholesale side, so for the retail ECN is the same on quoting price, but you do not connect directly to the venue that is streaming the price, the broker will send your trade and place it with a venue that is willing to make a deal with those retail blocks orders.

If the ECN is a tech, news, data provider company (like Bloomber, Flextrade or Reuters) they won’t hold funds in your behalf, they just will charge a monthly fee for the services and just will link your order to the venue you choose to.

 

[rgibson91]

I think it really depends what you're looking for. Tighter spreads on ECN but instant execution on MM/DD. However, like a lot of people have said here, execution on most modern ECN platforms is pretty much instant with no re-quotes.

A lot of traders like the 'peace of mind' factor that comes with ECN, in the fact that they're simply passing the trade through to a liquidity provider/other participant in the market and it's not going to a desk with someone that (possibly) has different interests to you.

Most brokers that are 'true' ECN will market this quite heavily on their website/info etc, so it shouldn't be that hard to find.