The rest is just add-ons to what ECN already has: With true No Dealing Desk brokers there are no re-quotes on orders and no additional pausing during order confirmation.
More info about ECN Forex Brokers
This is the textbook definition to work from. Most brokers claiming to be ECN brokers are probably telling the truth about this at least, although if you see large spreads, spreads that never seem to really vary, or continuously slow execution, they are almost certainly not.
The network is only as good as its source. To be regarded as a real ECN broker, the liquidity provider should really be a tier 1 bank. We must wonder how often this is really the case, and why many brokers that advertise themselves as ECN brokers are so tight-lipped about which liquidity providers they use!
When the first ECN brokers started appearing, bank traders started to ask how orders for minilots let alone microlots could possibly be sent straight through to tier 1 banks for processing. Bank traders will tell you that at this level, trade sizes are usually in minimums of ten or so full lots. The final question is, does it really matter? If a broker is at least trying to match orders directly, there is not much of a conflict of interest, potential or otherwise.
If you benefit from a low cost of trading and relatively fast execution, then why not be happy with what you have got. Choosing an ECN broker is not very different from choosing any broker. There are not many special factors to watch out for at ECN brokers that differ from what should be the usual considerations. When choosing any Forex broker, you should start from how much money you want to deposit, what kind of instruments you want to trade, how often you want to trade, and where you are located.
Beginning with these three factors, you should be able to eliminate several brokers from your list of candidates. Starting with location, you might feel more comfortable with a broker located in your own country or a nearby country , or is in a country that speaks the same language as your or which has a similar legal system.
If you are a U. If you live in the United Kingdom, you might want a U. This is probably the easiest place to start and helps you narrow down the list considerably right away when choosing a Forex broker. The next step to consider is regulation and the safety of your deposit. This might not matter so much to you if you only intend to deposit a relatively small amount of money that is not very important to you. If not, though, this is a very big issue.
Some countries have a well-developed culture of financial regulation enforcement, which is always reassuring, and are just not places where the big fraudsters can thrive. Another big issue to consider is whether any protection is offered on your deposit. This means that if you deposit that amount or less with a broker regulated by and based in the United Kingdom, if they steal from you or cheat you or even just go bankrupt, you should eventually receive your deposit back from the government there.
This is a significant advantage, and provides a lot of reassurance. If your deposit is a significant sum, you should seriously question whether it is wise to deposit it anywhere that does not offer government-backed deposit protection.
You also should be biased towards reputable financial centers and away from tiny islands you never heard of before! The third factor to think about is the cost of trading. One way to compare spreads is to open demo accounts at each of your candidate brokers to see what their spreads really are. One potential problem with this strategy, however, is that brokers have been known to make conditions in their demo accounts, including spreads, significantly better than those which prevail in their real money accounts.
Fortunately, there are a few websites which compare the spreads of real money accounts in real time across a range of different brokers, so looking here is going to be a good idea. Another serious factor to consider in choosing a broker is your style or intended style of trading i. Are you or are you going to be a scalper, day trader, swing trader or position trader? If you are making few trades but leaving your positions open for several days or even over weeks and months, you should consider how competitive are brokers are in terms of their overnight financing rates which are generally charged each day against positions left open at 5pm New York time.
For position traders, these rates can make more difference to overall profit and loss than the spreads charged, at least up to a point. However, if you are going to be leaving trades open for only minutes or hours but making many more trades, the spreads become a more influential factor, and overnight financing may not be an issue at all.
This means that of two Forex brokers, one might be the most economical choice for you as an intraday trader, but not as a longer-term trader holding positions overnight. Does it work smoothly, or does it have problems freezing up? It is easy, intuitive and pleasant to use, or not? With true No Dealing Desk brokers there are no re-quotes on orders and no additional pausing during order confirmation.
This, in particular, allows trading during news times with no restrictions on trading. An NDD broker can either charge commission for trading or choose to increase the spread and make Forex trading commission free. Sometimes STP brokers have just one liquidity provider, other times several. The more there are liquidity providers and therefore liquidity in the system, the better the fills for the clients. The fact that traders have access to the real-time market quotes and can execute trades immediately without dealer intervention is what makes the platform STP.
ECN Forex broker provides a marketplace where all its participants banks, market makers and individual traders trade against each other by sending competing bids and offers into the system.
Participants interact inside the system and get the best offers for their trades available at that time. All trading orders are matched between counter parties in real time.
A small trading fee - commission - is always applied. To be a true ECN, a broker must display the Depth of the Market DOM in a data window, let clients show their own order size in the system and allow other clients to hit those orders. With ECN broker traders can see where the liquidity is and execute trades.
ECN Forex brokers always have variable spreads. Only ECN brokers charge commission for trading Forex. An STP Forex broker is compensated through the spread spread markups - to be explained in details below.
STP brokers have a choice of offering variable or fixed spreads. STP brokers route all trading orders to the liquidity providers - banks.
These brokers, as intermediaries between their clients and banks, receive prices spreads posted by the banks on the Interbank market. Most banks, in fact, offer fixed spreads and are market makers. An STP broker therefore has 2 options: Let spreads be fixed. Leave the spread at 0 and let the system take the best bid and ask from the number of banks the more the better and in this way provide variable spreads.
How an STP broker earns its money? This is done by adding a pip or half a pip, or any other amount to the best bid and subtracting a pip at the best ask of its liquidity provider. All client orders are directly routed to the liquidity providers at original spread quoted by those providers while an STP broker earns its money from own markups.
This means that all small orders placed by traders usually those which are below 0. If you trade with "Cents account" or a "Mini account", your STP broker is most likely always is a counter-party of your trades. For all larger orders as a rule, above 0. With each transaction, the broker receives a portion of the spread. ECN brokers are the purest breed among all Forex dealers. They don't profit on spread difference. Their only profit comes from commission. ECN brokers are interested in their clients to be winning, otherwise there will be no commission to earn.
STP brokers make money on spreads, thus even though they do not have a physical dealing desk to monitor and counter-trade client orders unless its a hybrid STP model , they are still able to set their own price - the spread markup - for routing trading orders to liquidity providers and providing their clients with advanced trading services, lower account deposits, faster execution and anonymous trading environment with no dealing desk.
STP brokers are also interested to see their clients trading profitable, so that a broker can continue earning on spreads. Market makers make money on spreads and by hedging against their clients. However, if a client becomes "too" profitable, it can directly "upset" the broker. While this may be tolerated and professionally managed by a larger reputable market maker, with a smaller dealer such client will be soon asked to leave. Benefits of trading with No Dealing Desk brokers Among the main reason why traders look for NDD brokers is transparency, better and faster fills and anonymity.
Transparency means that a trader enters a true market instead of the market being artificially created for him. Better fills are a result of the direct and competitive market bids and offers. Anonymity means that there is no Dealing Desk watching who has come to the market and is asking for an order to be filled, instead client orders are executed automatically, immediately through the market network and totally anonymously. On the opposite side is a Dealing Desk broker, who is able to profile their clients.
The transparency of a Dealing Desk broker depends on the rules inside the company. Forex Brokers aren't bad on general, whether a Dealing or Non-Dealing Desk, they aren't there to be against any particular trader. They look to make business, not just work for traders in terms of cooperation in the market environment. Many large Forex brokers who have lots of clients tend to try to help their clients become profitable as much as they can, but once a trading order is placed, its everyone for themselves.
They offer STP accounts, but also have Dealing desk accounts, where they trade against their clients. There are no ECN brokers in Canada. ECN brokers from other countries might accept Canadian citizens it's not as strict as with US citizens. We don't however have details about citizenship restrictions for each broker, I'm truly sorry.
ECN brokers accepting US clients: The key component here is "ECN". The rest is just add-ons to what ECN already has: Can only provide facts: Yes, as per their description and conditions, they are ECN. Tickmill is DMA, like these: If the commission for a lot is 7 Does the commission on 0. A common rule applies to all brokers: What would be your criteria?
Experience, reputation, size of the company, level of support, your own convenience with terms and conditions being offered. While among technical parameters, every ECN broker must have: Hi there, STP - yes.
PriorFx charges no commission for trading, hence they're not ECN. Sunbird es una estafa. Si quieres retirar desaparecen. Forex Tamil is he scam fund manager? Looks like he makes more money in www. How it is possible? Let find out The secret behind is Forex Tamil and Even Forex broker both are friends more over even forex broker marketing head and Mr.
Forex Tamil trade will tell to the Even Forex broker to manipulate it. At the end of the day i. Some trades you can see less losses and more profit What is the befit for Mr. Is there any else? Because of the profitable trade history will advertise or post it in social media such as Facebook to cover online training and some time will work as fund manager.. How much he cost for online training?
In the mt4 manger he can identify whether any client view his account? All new "traders" please read what trader at 27 september wrote! You will do yourselves a BIG favor! ALL, and once again ,ALL "brokers" are running bucket shops trying to get to small amount of money from people who need it the most! You may ask why authorities do not stop this?