To get the most out of forex trading, you must need the best forex broker. However, forex education is also necessary for success. Things get more manageable if you trade with the ECN broker, which is also known as Electronic Communication Network brokers.
In recent days, ECN forex brokers are gaining popularity as they provide a marketplace for market makers and traders to take the opportunity to place a competitive bid for each other. However, the minimum deposit for the ECN broker is relatively higher than that of regular forex brokers.
On the other hand, you will get some benefits too, such as lower spreads, scalping opportunities, etc.
Not all the ECN brokers will get you these advantages drastically. Only the best ECN forex brokers will land you the advantages.
So, how do you find the best ECN broker, which is also the best forex broker too?
Throughout this article, we will take you through the ways to find the best ECN brokers.
Elements of ECN Broker
ECN has all the features, just like the top forex brokers. However, their nature of operation and execution are different. The best thing about ECN is its low-cost trading. Furthermore, the following are the features or elements of ECN forex brokers.
The minimum deposit for an ECN broker is usually higher than a regular broker, which results in the minimum trade size too. However, the minimum trade size varies with each broker. But the regular size should not be less than 1 mini lot.
When you look at the forex broker reviews, you will find that the execution speed of the ECN brokers is the fastest. The quick execution speed makes the spreads lower.
ECN brokers are famous for their lower spread rates. It is because of the expectation speed, which is sometimes less than a second, and sometimes you may not see any spreads. So, it is profitable for the traders, even considering the commissions.
However, they may sometimes vary according to the size of the trading lots as well as the supply and demand of the currency market.
Some may think that ECN doesn’t offer a variety of instruments, but the truth is, they offer a wide range of tradable instruments. Instruments include but are not limited to Indices, Stocks, Commodities, and Forex. However, the minimum trading size is higher in these instruments.
The maximum trade size is usually higher than the regular market makers. So, for whoever wants to trade in a big lot, an ECN broker will be the ultimate broker type for them.
On the other hand, the minimum trade size is bigger. As we have mentioned earlier, the minimum is 1 mini lot.
How to Find the Best ECN Forex Brokers?
Just like finding a regular broker, choosing an ECN broker is also a difficult task. However, you need to review many special factors. You may look at the deposit amount they need, your trading frequency, and your geographical location. With these basic three factors, you can easily sort out some brokers initially and then go for an in-depth analysis.
As you invest more, you may want to trade with an ECN broker that is located in your region so that you may head to the office, too, if needed. Additionally, you can also choose a broker out of your location. In that case, you have to search for its reputation too.
It should be the first thing to look at; however, we periodize the location for your convenience. This may really not matter to you if you see a lucrative website and offers. But you should care about that too, as scammers are growing more common and working hard to scam you. Make sure to check the ECN broker’s website. If they are regulated, then cross-check with the regulatory body too. It is a BIG NO if you don’t find any regulatory body associated with your selected broker.
As we have mentioned earlier, the minimum deposit is higher. So, you should look at the minimum deposit amount of your desired broker. You may avoid it if it is way higher than your capital. Besides, compare the spreads with other ECN brokers too.
Make sure you’re trading your frequency with your reliable forex signal services and the trading styles such as day trader, scalper, or position trader. Then, check your broker’s style and decide.
Finally, platforms are one of the most significant factors you will find, as you will trade through the platform. Check the platform to see if they offer any forex technical analysis, the speed of the transaction, tool, etc.
The good thing about ECN is that you can open a demo account to check out all the features before investing any real money. That is how you will get the best forex broker for ECN.