ECN trading has been a milestone in the modern forex industry due to the transparency, ease and advantages that it entails. With direct access to liquidity providers and automatic matching and execution of orders, it has become the way forward for a vast majority of forex traders around the world.
What does ECN stand for? Electronic Communication Network. What's the secret? Like much of the forex market mechanisms today, an ECN is an automated component of trading, since it connects traders to liquidity providers such as banks, brokerages and other traders round the world and eliminates the role of the traditional middleman. Traders get access to different prices from a variety of market participants directly on their trading platforms and are shown the best bid and ask prices available in the market. The matching and execution of orders ensues automatically and in this way the trader can always be sure that the broker they are using does not have any dealing desk involvement against them or the trade is processed on an STP (straight through process) basis. For each transaction, traders are charged a small fee by the broker.
|Account Currency||USD / EUR / GBP / NGN 1|
|Leverage / Margin req.||Floating from 1:500 - 1:255|
|Minimum deposit||$/€/£ 500, ₦20 0001|
|Commission||$2 per lot17|
|Order execution||Market Execution|
|Limit & Stop Levels||X|
|Pricing||5 decimals for FX (3 on JPY pairs), 2 decimals for Spot Metals|
|Trading Instruments||Majors, Minors, Exotics9 — 45, Spot Metals — 3, Spot CFDs — 1419|
|Micro Lot (0.01)||V|
|Mini Lot (0.1)||V|
|Standard Lot (1)||V|
|Maximum Volume per Trade||100|
|Maximum Number of Orders||Unlimited|
1 NGN accounts are only available to clients in Nigeria.
2 Commission is taken only when a position is opened, at double the levels listed in the table above (accounting for both the opening and the closing of the position). Since a client's total trading volume is calculated on a monthly basis, at the beginning of each month commissions will be charged at the highest level and should the trading volumes increase during the month it will automatically be reduced to reflect the volumes traded.
5 The Leverage / Margin requirements may be subject to change as a result of applicable regulations in your country of residence. For residents of Poland, the maximum leverage is 1:100.
6 On ECN MT4, ECN Zero and ECN Pro, in the hour before the close of the trading session on Friday, the Stop Out and Margin Call levels are changed from 50% to 100% and from 80% to 130% respectively.
8 Spread may increase depending on market conditions.
9 Exotic pairs are not available for swap-free accounts.
17 Please note that commission is charged separately for opening and closing a position on an ECN and MT5 ECN account, so commission equals $4 per lot.
19 FXTM applies dividend adjustments on Shares and Spot Indices when positions remain open on the ex-dividend date. If a client is holding buy positions his/her account will be credited with the fixed dividend amount. If a client is holding sell positions then the dividend amount will be debited from his/her account.