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]

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.

 

[devis77]

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 😀

 

[stockcats]

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[DiF0r]

I don't like ECN accounts because of the high commissions especially for scalping techniques.

 

[Weizfx]

An ECN-STP broker provides spreads and quotes which are the closest to the real market. They work straight to the real market so you are supposed to get the same spreads. STP brokers earn just from the spread. When you have a broker with fix spreads they probably wont let you trade the news, do not let you log in or sometimes you dont get the price you open the trade...

 

[mr.gardner]

ECN-STP brokers are the best. They offer great spreads and you can see the market in-depth. It is non-dealing desk ! Most brokers have small commissions for compensation.

Take care!

 

[kerigold]

ecN

Hello there! did somone tried FxPro ECN, Im with Dukas, but spreads are bit high

account manger was telling me that they want good traders that they only get a commission on volume... think is like fxcm o alpari. Excution is better than alpari, tried it... spread for Asia are quite good! im suprised. Really

[links removed]

 

[mr.gardner]

I was trading with FXPro long time ago and not sure whether I was using normal or ECN trading. Presently, I am using the Level2 module of DF Markets, which is an ECN-STP and I really get used to their platform and I was also received switch broker bonus. The execution speed is very fast and spreads are tight. Here you are a list where you can see some useful information about other broker offering ecn.

Good Luck!

 

[Fxpipper]

ECN trading is definitely preferable, given the interbank quotes and low spreads. On the commissions, they are not that big. I have been using Trader's Way ECN account module for a while now and no complaints from me so far..would suggest that you google the ECN brokers, demo them and then go with a live acc.

 

[masudraj]

I think creating cash through foreign exchange has currently become a profitable live for the people and with the evolution of forex trading; the amount of traders to the forex market is increasing day by day.

 

[Dominator4fx]

I think creating cash through foreign exchange has currently become a profitable live for the people and with the evolution of forex trading; the amount of traders to the forex market is increasing day by day.

Forex trading is becoming more popular every day and this is why we see more trading volumes and the ability to make more profitable deals do exists.