recommended to choose this avenue over market makers. 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. ECN/STP, STP, united States, nFA, cftc, FCA 5000 50 : 1 - Mini account 50 : 1 - Standard account 50 : 1 - ECN account.05 - Mini account.05 - Standard account.05 - ECN account. The main reason why traders are usually advised to work with ECN Forex brokers is because they are the least likely to have a conflict of interest. Understanding all the differences is not that easy, especially for the beginner. Weve noted that more and more brokers are advertising themselves as ECN brokers, or at least offering ECN-type accounts.
This is the essential nature of the Forex market, and there are always willing buyers and sellers. 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. Furthermore, it can be very difficult to tie down exact"s in the markets.
Are you or are you going to be a scalper, day trader, swing trader or position trader? The good news is that brokers that dont meet minimum standards of acceptability in one area are usually the same ones that wont meet required standards in other areas also, so it becomes easier to eliminate them. Think about it, if there are so many traders in the interbank market, how could you know at what exact price your order would be filled? What is ECN Forex broker? As you may guess from their name, these kinds of brokers create the market themselves rather than connecting you to other traders.
Many users search for true ECN STP brokers because they dont want the broker to be the counterpart of their orders, in other words, they do not want to have conflicts of interest where the broker might. The first result will probably be from the companys website itself. Forex brokers in the US are among the most regulated brokers in the world. To find out if a company is legitimate, therefore, do a Google search. The first thing any trader needs to do is look into the company itself.