ECN trading has become extremely popular in the retail forex world due to the transparency, execution speed and competitive pricing offers. With direct access to liquidity providers, automatic matching and execution of orders, it has become the most favored type of trading account for the vast majority of forex traders around the world.
ECN stands for ‘Electronic Communication Network’. This provides traders with direct access to other market participants via interbank trading prices. The system effectively publishes orders entered by market makers to third parties and individual traders.
Like much of the over-the-counter forex market today, an ECN is a highly sophisticated component of trading, since it connects traders to major liquidity providers such as banks, brokerages and other traders round the world, regardless of the size of the trades.
This eliminates the role of the traditional ‘middleman’, and as the integration of orders increases, so does the overall pool of orders in the network – which is great news for traders with an ECN account searching for the best pricing.
Traders get access to different prices from a variety of market participants directly on their trading platforms. This means they are shown the best bid and ask prices available in the market, which gives an ECN Account holder greater depth in market pricing.
The highly automated process then uses the network to enable buyers and sellers to instantaneously find a counterparty. The matching and execution of orders takes place automatically, and so trader can always be sure that the broker they are using never trades against them.
An ECN Broker has no dealing desk involvement with their clients. They only match traders and never send their order flow to market makers.
For each transaction, no profit is made on spread difference. Instead traders are charged a small commission by the ECN broker.
|Trading Platforms||MT4 / MT5|
|Account Currency||USD / EUR / GBP|
|Leverage / Margin req.||Leverage is set based on the trading instrument and limited with 1:30 max. Refer here for more info.|
|Minimum deposit||$/€/£ 500|
|Commission||$2 per lot9|
|Order execution||Market Execution6|
|Swap-Free|| MT4: |
|Limit & Stop Levels|
|Pricing|| MT4: 5 decimals for FX (3 on JPY pairs), Spot Metals: 2 decimals for XAUUSD and 3 decimals for XAGUSD|
MT5: 5 decimals for FX (3 on JPY pairs), Spot Metals: 2 decimals for XAUUSD and 3 decimals for XAGUSD
|Trading Instruments|| MT4: Majors, Minors, Exotics4 — 48|
Spot Metals — 3
Spot CFDs — 147,8, 13
|Minimum Volume in Lots per Trade||0.01|
|Micro Lot (0.01)|
|Mini Lot (0.1)|
|Standard Lot (1)|
|Maximum Volume in Lots per Trade||1008|
|Maximum Number of Orders||Unlimited|
|Maximum Number of Pending Orders||300|
1 Leverage is offered based on your knowledge and experience. The Leverage / Margin requirements may be subject to change as a result of applicable regulations in your country of residence.
2 Please bear in mind that the Company may at its sole discretion change, within the hour before the close of the trading session on every Friday, the Stop Out and Margin Call levels from 50% to 100% and from 80% to 130% respectively, for all ECN MT4/MT5 accounts. Moreover, kindly note that the Company may extend these amendments for as long as it deems necessary after the market opening, by providing the Client with prior written notice.
3 Spreads are floating and they may increase during specific periods of the day depending on the market conditions.
4 Exotic pairs are not available for swap-free accounts.
6 Please note that on all MT4 market execution accounts (ECN, ECN Zero and Pro), preset SL/TP levels are not permitted. If a client wishes to add SL/TP levels, the client can modify the existing position after the order is opened.
7 For Spot Indices and Spot Commodities on ECN MT4 Account the Maximum volume per trade is 5 lots; for Spot Indices the Maximum Volume of lots per trade is 50 lots on ECN Zero.
8 For Spot Indices and Spot Commodities on ECN MT4 Account: the maximum volume of all orders for Spot Indices is 15 lots and 50 lots for Spot Commodities.
9 Commission on ECN MT4 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). For further details of the Commission charges for ECN MT4 account, please refer to the Commissions Page. For ECN MT5 Commission is fixed at $4 per lot, $2 are being charged when position is opened and $2 when position is closed.
13 FXTM applies dividend adjustments on Stocks and Spot Indices when positions remain open at the close of the trading session, on the business day before the ex-dividend date. However, kindly note that the dividend adjustment takes place before the market opening of 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.