Slippage with ECN brokers?

rom1

Trader
Mar 12, 2016
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Hi,

I have been reading a book on Forex trading by Anna Coulling called "Forex for beginners".

Its a pretty good book, though I'm completely new to forex so can't say how useful the advice will be for actual trading until I start doing it.

Anyhow, in the section on how to choose a broker (page 149 to be precise), it says that one of the advantages of an ECN broker is no slippage.

I always thought there was no guarantee against slippage so was surprised to read this.

Just wanted some other thoughts that could corroborate this (or not)?

Thanks!
 

Enivid

Administrator
Staff member
Nov 30, 2008
12,766
520
144
Odessa
www.earnforex.com
Slippage occurs on trading accounts with Instant execution model. ECN brokers use Market execution model. In Market execution, there is no slippage. Instead, the broker will issue a requote should the price change during your order processing. You can read more about Instant vs. Market execution in my blog post:
http://www.earnforex.com/blog/instant-execution-vs-market-execution/
 

Ally

Newbie
Sep 13, 2016
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No slippages means no latency for market execution. Only the ECN or STP brokers offer no slippage model. Usually slippage occurs when the market is very volatile which is common during news hours in normal market conditions. Slippages which occur during no news hours take you in deep losses. These slippages occur because of the presence of market makers in the industry. Make sure you do not adhere to these types of brokers.
The popular ECN brokers I know are Finpro trading and 3TG Brokers.
 
Jan 30, 2017
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Yes, there is no guarantee against slippage. Some ECN brokers do have huge slippage which usually occurs during news hours. These slippages occur only during news hours.
 

Nas880

Newbie
Feb 16, 2017
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If your "ecn" broker gives only negative slippage and no positive, then it's not ECN!
 

garena

Master Trader
Jan 28, 2014
243
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Indeed, it could be MM and you're trading against broker, not market. The price you see on platform aren't from LPs.
 

Nas880

Newbie
Feb 16, 2017
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for real direct to market execution (STP/ECN) whatever you want to call it, you SHOULD see price improvement (positive slippage) also, never only negative!
 

ashouq

Active Trader
Feb 21, 2017
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Slippage occurs during high volatility and it mostly happens when the important news releases making the market more unpredictable allowing the traders to trade during the said scenario on as it is basis.