FXCC brand is an international brand that is registered and regulated in various jurisdictions and is committed to offering you the best possible trading experience. It’s also worth noting that an ECN broker’s fundamental function is to deliver a cost-effective solution for their clients. ECN brokers thrive on turnover, and they need you to be successful and profitable. Trading through an ECN broker is advantageous for many reasons, some of which we’ve already covered above.
- As you pay no commissions, you will find the spreads are wider than most ECN style accounts.
- Unlike the webinars which seem to be targeted more towards beginners, the eBooks have content for beginner, intermediate and expert traders.
- In other words, the investor can see the trader’s process and close the positions if they believe it’s the right thing to do.
- This also applies to any leveraged product due to leverage amplifying the risks of trading.
Our spread comparison suggests you can get cheaper and better value standard account spreads with other brokers. Unfortunately, FXTM doesn’t provide their average spreads for all currency pairs, so it is hard to give a direct comparison to other brokers. FXTMs standard account is a market maker style account, this means you will pay no commissions when you trade since your orders are executed using a dealing desk. A simple search through a search engine will reveal which brokers offer ECN trading accounts. You can then work your way through these brokers and perhaps engage in an online conversation with them to decide where to open your trading account.
What is ECN pricing?
Transparency, fairness, speed of execution, and the lower cost of each trade are just some advantages. STP compliments the NDD protocol, and your orders are routed straight through to the forex market through to a liquidity supplier. STP is a highly transparent process, and as with NDD, the purpose is to get you the best price available.
To ensure you receive the best possible price, IC Markets do not hedge any positions with the liquidity providers. For this reason, while not completely a true ECN broker, IC Markets can offer what they call an ECN pricing model. This means they use an Electronic Communication Network pricing model (known as ECN for short) to access their deep pool of external liquidity providers when sourcing prices. IC Markets pass these prices to you without any requotes or dealing desk intervention. The IC Markets Raw spread account offers ECN pricing if you are using the MetaTrader Trader Platform.
Forex ECN Account Advantages
Raw ECN account is an ECN account with tight spreads, almost zero. As a result, with a RAW ECN account, traders can experience some of the lowest trading costs in the industry. The main difference between a micro or mini Forex account and a standard account ECN or Classic trading account is that a reduced volume system is used when trading on mini and micro account.
However, if you are looking for the most cost effective account type, then the ECN account is the one to choose. As long as you are executing when the spread is less than 0.3 pips your transaction fees will be cheaper. On the ECN account, you will be trading from 0.0 pips variable spread plus $7 per round turn lot. In an ECN account, however, orders go straight to other customers and market makers don’t get involved in trades. Many traders start with a Standard Account and then realize they want to have more control over their trades and switch to an ECN Account later on down the line.
If you trade into an ECN on a platform such as MetaTrader’s MT4 through a reputable broker, then you’ve given yourself the best foundation to underpin your progress. When you trade a standard trading account, you typically get a fixed spread. For instance, you might get quoted a 2-pip spread on EUR/USD, whatever the price or volatility of the currency pair. It is not possible to predict future success based on past performance.
Another notable feature of ECN accounts is the potential for lower spreads. However, it’s important to note that ECN accounts may also involve commission-based trading costs, which can vary depending on the broker and the specific ECN account type. ECN Account offers direct market access (DMA) and connects traders directly to liquidity providers, enabling trades to be executed at the best available bid/ask prices in the market. Orders are filled by multiple participants, including banks, institutions, and other traders. Standard Account’s trades are executed through the broker’s dealing desk or as market maker, where the broker acts as the counterparty to the trades. The execution may be faster than ECN accounts, but the prices are determined by the broker.
Resources Available For FXTM Traders
IC Markets provide a range of forex trading and education tools to help you with your trading journey. Thus we can conclude you will save $3 with a RAW account when trading with standard lots. In our example, we are using AUS USD where AUS is the quoted rate and USD is the base. IC Markets adds a flat 1.0 pip to the spreads on the Standard account (1.4 pips).
FXTM uses floating commissions which means the larger amount you trade, the lower your commission will be. ECN is the electronic computer network where your order gets matched. Imagine the ECN is a liquid pool of buy-and-sell orders that get matched with a partner. Your order goes into the vast collection and finds a match in milliseconds. Your NDD broker doesn’t interfere with your order through their dealing desk operation. They don’t group your orders, delay them, or otherwise try to game the system to increase their bottom-line profitability.
Advantages of Forex Trading – Leverage, Liquidity, and Volatility
FXTM offers some index and commodity CFDs but doesn’t offer any other kind of CFDs which some other providers do. (Note that in the UK, the FCA has banned the trading of crypto-asset derivatives due to amateur retail traders being exposed to such high risk). Each 1.0 pip you trade costs $10, so you are paying $13 for each lot you trade with FXTM. Choosing a broker with spreads of 0.8 pips ($8) could save you $5.00 for each lot you trade. Requotes will usually not be in the trader’s favour so instant execution is for traders that want to ensure they buy or sell at the quoted spread. Traders that value fast execution speed will prefer ECN accounts that use market execution.