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ECN (Electronic Communication Network)
A type of broker that connects traders directly to liquidity providers.
What is ECN (Electronic Communication Network) in forex trading?
A type of broker that connects traders directly to liquidity providers. ECN brokers display the best available bid and ask prices from banks and other traders. They typically charge a commission per trade but offer very tight spreads.
What this looks like across the brokers we track
Of the 37 brokers BrokerAnalysis tracks that state an execution model, 20 are ECN, 10 are Market maker / dealing desk, 6 are STP, 1 is No dealing desk. Execution model is self-declared by the broker, not independently audited.
Measured across 37 entities in the BrokerAnalysis dataset. See the full broker comparison
Detailed Explanation
ECN brokers display the best available bid and ask prices from banks and other traders. They typically charge a commission per trade but offer very tight spreads.
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