The perfect forex trading experience is all about finding the ideal forex broker. Generally, no forex trader can enter and trade in the forex market without the presence of an ideal forex broker. Furthermore, the forex market is loaded with several forex brokers that sometimes confuse the traders confused when selecting the broker for their needs. You can also read freshforex review by traders to make finalized decisions before start trading. However, forex brokers play a vital role in overall forex trading. Read More
Typically, the traders can find market makers and ECN brokers as the most significant brokers in the forex market. The forex traders can select among them per their trading needs and demands. Both the brokers have their own merits and demerits. However, as per the current status, many traders are going ahead with ECN brokers. Let us walk through the meaning and benefits of ECN brokers. Take a close look:
Who are ECN brokers?
ECN stands for Electronic Communications Network, and by the name, it is pretty clear that the trading is conducted via a computerized system. Generally, the ECN brokers are the platforms that connect the small market traders with the large liquidity providers. Therefore, as a result, the forex traders get the ideal currency rate, making them lay their hands on more lucrative deals.
The primary feature of the ECN brokers is that they offer direct contact between the liquidity providers and market traders. Hence, as a result, the traders get access to the nearest market prices. It is a significant reason that many people choose ECN brokers like fxglory review platform brokers.
Benefits of ECN forex brokers
Once the general meaning of ECN brokers is clear, let us move to the advantages they offer to their clients.
The market makers make you an open book as any trader can see your name and other details. However, this is not the case with an ECN broker. Typically, forex traders can trade with complete privacy as no other individual can see their details. Thus, a committed ECN account is all you need to trade with complete anonymity and make lucrative deals. Furthermore, it is perfect to say that ECN brokers are the ideal platform that makes traders connect with large liquidity providers.
Forex brokers can effectively access the market prices. Thus, as a result, the forex traders can ideally trade on the tight bid and offer spreads. While on the other hand, when the traders trade with market makers, they usually encounter fixed spreads. Hence, as a result, the overall transaction cost will enhance, making the transaction pretty expensive for the traders.
Faster trade execution
The significant feature of the ECN brokers is that they account for excellent trade execution speed. Unlike the market makers, the forex traders need not wait for a long time to get their trade done. Additionally, the ECN brokers follow a computer-based trading pattern and are the major platform for connecting the traders with the liquidity providers.
The working model of ECN brokers is centrally directed towards a regulated pool of liquidity. As compared to the market makers, the ECN brokers are highly liquid. Hence, as a result, the forex traders get access to more liquidity. Additionally, they also account for the highest level of transparency, making them highly ideal for forex traders.
The Bottom Line
Therefore, in a nutshell, it is fitting to mention that forex traders prefer ECN brokers due to several reasons. However, ECN trading is not everyone’s cup of tea, as it is pretty expensive compared to the market makers. However, once traders select the ideal ECN forex broker, they end up laying their hands on the most lucrative deals. Thus, choose wisely and make the right decision by reading the fxgiants review and ratings.