ECN Forex Account vs Standard Account

ECN broker acts as an intermediary between traders and banks/institutions, sending clients’ market orders through an interconnected network.

There are several key differences between an ECN account and a standard trading account:

Low spreads: ECN spreads usually start from 0 pips. While many top Forex brokers may also offer low and competitive spreads in a standard account, the spread typically starts from 1 pip or more in many cases.

No requotes or slippage: The high liquidity offered by ECN brokers, combined with the speed of order execution through the networks, means that no requotes are needed and cases of slippage are extremely rare.

Lot commissions: Since they often offer a considerably lower spread, ECN brokers usually charge a small commission for each standard lot traded. This typically starts from around $3 per lot traded with many of the top Forex brokers remaining very competitive at this point.

Order execution delay: As mentioned earlier, ECN order execution is extremely fast. This means there is no delay in completing the order, making it the perfect model for clients like scalpers.

Security and transparency: ECN brokers, thanks to their STP and NDD nature, cannot manipulate the market. They almost do not intervene in anything other than facilitating the network, which means they are a safe and transparent way to trade.

Minimum deposit: The minimum deposit can be a bit higher for ECN broker accounts. Typically, the minimum deposit is $200 or more, although there are some exceptions.


Nikesh-Mehta-AllOnMoney

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].


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