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BlogWhat is an ECN forex broker?
An ECN (Electronic Communication Network) broker routes trades directly to a liquidity pool of banks and other traders instead of passing them through a dealing desk. This results in tighter spreads but typically incurs a separate commission per trade.
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
Answer
An ECN (Electronic Communication Network) broker routes trades directly to a liquidity pool of banks and other traders instead of passing them through a dealing desk. This results in tighter spreads but typically incurs a separate commission per trade.
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