How You Can Benefit From an ECN Broker

What is an ECN Broker?

ECN stands for Electronic Communications Network. An ECN broker offers an electronic network that allows many market participants, such as yourself, to execute trades directly with each other. The ECN broker does not make or set a price, instead the ECN broker lists the various bid/ask price quotes received from the individual market participants within the network. The prices listed on the ECN are immediate offers to buy or sell, that will be electronically routed and executed immediately when a matching order is made. Since you are trading directly with other market participants, the ECN broker charges a fixed commission for each transaction made. This commission is generally small and in many cases can be as little as 1 pip per round-turn lot.