ECN or normal trading.

[j'ai]

Can you tell me what the difference is between ECN trading and normal trading (when clicking on new order in Metatrader).

I understand that ECN is commision trading and normal trading is the spread, but thats as far as I go.

Could someone tell me which is better, if say, you are trading several pairs over 3 timeframes and had approximately 25 trades in the day.

Thanks

[Enivid]

ECN is better, because it passes your orders to other parties in the Forex market, while your orders in normal broker stay within its system - the broker just matches your position with its own position in an opposite direction. ECN usually offers cheaper and faster trading.

[j'ai]

Thanks Enivid. Have now applied for a live ECN account with Dukascopy.

[Foster]

what does ECN mean?

[Enivid]

Electronic Communication Network.

[Fxpipper]

With ECN accounts, you get access to better quotes, smaller spreads..with a small commission that's levied.

[Stevenfx]

Originally Posted by j'ai

Can you tell me what the difference is between ECN trading and normal trading (when clicking on new order in Metatrader).

I understand that ECN is commision trading and normal trading is the spread, but thats as far as I go.

Could someone tell me which is better, if say, you are trading several pairs over 3 timeframes and had approximately 25 trades in the day.

Thanks

I will start from the end- ECN is much better than a fixed broker is. The reason is, just like you said, is that the spread are changing because a real ECN broker is connected to the actual forex market. An ECN broker usually has lower spreads than the fix broker, so it has direct impact on you balance on the end of the month. Another important issue that might save you a lot of money is the slippage. ECN brokers has low slippages because they show the real prices, but the fix broker sometimes cannot supply the requested price and you get a requote/slippage that increases your loses. I suggest that you test it with your own eyes. Start with demo accounts of ECN brokers such as Alpari or Sunbirdfx and compare the spreads with a fix broker. You will see the difference then.Good Luck !

[j'ai]

my apologies for the late reply Stevenfx, thanks for you post it was very helpful.

[bestforexpartners]

I think Making money through foreign exchange has now become a profitable measure for the individuals and with the evolution of forex trading; the number of traders to the forex market is increasing day by day. I will also prefer ENC accounts.

[devis77]

Originally Posted by bestforexpartners

I think Making money through foreign exchange has now become a profitable measure for the individuals and with the evolution of forex trading; the number of traders to the forex market is increasing day by day. I will also prefer ENC accounts.

I have noticed that too. Just a couple of month ago, me and my friends played online game together, now we are discussing forex news and strategies