The Best ECN Broker is what many traders who are interested in ECN accounts are looking for. This time we will find out about which of the best ECN brokers offer many advantages. Learn more in the following article. Also make sure to keep updating on GIC's Instagram to keep up with news and events on GIC!

ECN Definition

A computerized system that automatically connects buyers with sellers through their orders for the same securities on the public market is known as an ECN or 'electronic communication network'. Large brokers connect with individual traders so that both can directly trade among themselves without having to go through an intermediary.
 
Electronic communication networks do not allow to trade from different locations, even when investors are on opposite ends of the world. ECN makes trading quick and easy. quickly and easily trade with each other.

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What is an ECN Forex Broker?

There are 2 main types of currency brokers that offer traders and investors have access to the forex market using completely different business models. They are ECN and Market Maker. An ECN (electronic communication network) broker is an FX broker that uses ECN operators to connect directly to interbank liquidity providers such as banks, hedge funds, and mutual funds.
 
They are also called non-dealing desk brokers which means your orders will be sent directly to liquidity providers without the help of market leaders. ECN brokers. Unlike market makers who are on the opposite side of your trade, ECN brokers match your transactions among market participants, which means they cannot negotiate against you.
 
They take a commission from your trading volume which means they want you to win so they can make a profit. This is why ECN brokers are considered the purest form of currency traders there.

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How to Identify an ECN Broker

Here's how to identify an ECN broker that you can follow and apply in finding the ECN broker.
  • Most traders are usually new and gullible, never read the broker agreement that usually tells you whether the broker is a True ECN or an ECN based on association. All regulated ECN brokers will declare that they are obliged to disclose such information to their clients.
  • A true ECN broker will have variable spreads. I'm sorry to tell you if there is an ECN broker that promises to offer fixed spreads then it is not a True ECN broker.
  • Absolutely NOT dealing with the Dealing Desk if it is an ECN broker. Usually Market Makers have a Dealing Desk which means they will trade against you. Tip: To find out if it is a Dealing Desk broker open a demo account and a small real account. You will notice the difference in pips and how much the price varies during the news.
  • There are no restrictions on setting Stop Loss or Take Profit distances. If the broker does not allow Scalper or Day traders to choose you, what is the broker? Yes, you are right. It is not an ECN broker.
  • Check the chart of your Forex broker and the chart of your order. Do you see any difference in the price of BID? If there is no difference then bingo your bingo with an ECN broker.
  • If your Broker only gives you negative slippage, then it is not a True ECN broker. Slippage is a common occurrence and it is quite normal in the True ECN market. Slippage can be both positive and negative.
  • True ECN brokers always allow traders to place multiple trades. You can really trust me on this one. Tip: If you really want to know if it is a True ECN broker, place trades larger than 5 standard lots. If the order is rejected then it is not a True ECN broker.
  • Usually True ECN Brokers will not promise you great offers and discounts when opening an account. As I said earlier, they will generate income through commissions regardless of whether you win or lose your trades.
  • A true ECN broker will display all price updates every minute because prices come directly from the market. Tip: Check out the Platform and it is best to compare it with the demo platform as well.

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What is ECN Forex?

One of the most widespread terms in the world of Forex trading is ECN brokerage. But despite this, many of us still don't clearly understand what it is and how we can trade more effectively through it.  Any trader looking for new opportunities and advantages over traditional brokers should start thinking about using an ECN.
 
ECN trading is a type of trade that takes place between two parties without using an actual ECN broker. ECN trading is usually done electronically, and it is a popular choice for Forex traders. One of the advantages of ECN trading is that it allows traders to trade directly with each other, without having to go through a broker. This can result in lower commissions and better prices.

Additionally, ECN trading provides more transparency than traditional methods, as all orders can be viewed by all participants. As a result, ECN trading has become a popular choice for many traders.

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What does an ECN broker offer?

Here are 6 of them that we have highlighted for you:

  • Anonymity

Trading with a true ECN broker gives you more anonymity than other brokers. This means that you can take advantage of the current market conditions. You will also be able to trade without bias. ECN brokers also offer fast execution speeds and tight spreads that can help you make more money.

  • Higher bids and lower asking prices

The next advantage of trading with an ECN broker is a higher bid and a lower ask price. This is due to the fact that there are no "intermediaries" when trading with ECN brokers. ECNs connect different participants in the market, including banks, other institutional traders, and individual traders. This results in a smoother market with higher bids and lower asking prices.

  • Access to Clients and Liquidity

ECN brokers are brokers that allow everyone to have the opportunity to trade. This is done because it provides market liquidity from financial authorities and institutions that are competitive, regulated, and qualified. Plus, because of how the relevant information is conveyed, transparency is another major advantage of using an ECN broker. This means that all ECN brokers have access to the same feeds and trades. Thus, the transparency of the underlying market prices of some liquidity providers is guaranteed.

  • Instant Trade Execution

When you trade Forex, you can't wait long for your trade to be completed. That's why ECN brokers are so great that they make sure that your trades go fast and smoothly. This is done by letting you trade directly with others rather than using a network of brokers. This way, everyone wins.

  • Variable spreads

Traders are guaranteed access to the best prices through ECN brokers. With tight bids and bid spreads, you can trade with confidence and know that your trades will be executed quickly without worrying about being filled up below the market price.

  • Sustainable Trading 

The last advantage we want to mention is that you can continue trading without any lag when trading with an ECN broker. They also let you trade during news events and other activities that give traders the opportunity to take advantage of price volatility in the Forex market. 

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Best ECN Brokers

Here are examples of the best brokers and trading platforms, both in Indonesia and internationally. The brokers are:

1. GIC Trade

Global Investa Capital (GIC) is a broker or broker unlike any other. Through the GICTrade platform, We offer you more affordable trading solutions. GICTrade is a peer-to-peer trading platform that connects traders and market makers. What makes GICTrade special? You can choose to become a trader or a market maker. GICTrade helps minimize costs, increase profits, and create fair transactions. Traders don't have to pay commissions and swap fees, and spreads are low thanks to market makers. All GIC transactions are reported to the Jakarta Futures Exchange and the Indonesia Futures Clearing, ensuring their legality. GIC is the best choice for beginners, with a complete service in the blockchain-based trading ecosystem.

What are the Advantages of GICTrade ECN Account?

Utilizing a broker or platform with a Forex ECN account has a number of advantages, and this is highly desirable for many traders. ECN brokers offer key benefits that can help them compete with other reputable brokers. Here are some of the key benefits of using a broker or platform with a Forex ECN account. In addition to the above benefits, GIC also offers additional advantages, such as:

  • You can make a deposit with a minimum of 2500 GICT.
  • Leverage of 1:100 for all instruments, and 1:400 for forex and gold instruments.
  • No requotes.
  • Ability to execute directly to market.
  • Low spreads that start from 0 pips.
  • Floating spread.
  • The commission is 7 GICT per lot.
  • 0 swap fees.

2. FXTM

FXTM is one of the top ECN forex brokers and has attracted quite a bit of attention recently. The platform is intuitive for navigating and presenting important information in a clear and concise way. As with fees, various accounts at FXTM are available by capital. The 'Micro Account' supports MT4, offers a minimum deposit of $50, and offers forex and commodity CFDs.
 
Whereas, the Advantage and Advantage Plus accounts support MT4 + MT5, have a minimum deposit of $500, lower spread fees, commissions, and stock/index CFD support. In addition to offering a wide range of order types and built-in charting tools, FXTM is one of the best brokers on the market when it comes to educational resources.
 
The platform hosts regular webinars/seminars dedicated to forex trading and even provides eBooks and entire guides dedicated to trading strategies. Unlike some ECN forex brokers, FXTM has a clear focus on educating investors.

3. IC Markets 

IC Markets is an Australian-based broker, handling over $15 billion in trades daily. It is regulated by CySEC, FSA, and ASIC, so there is nothing to worry about when it comes to security. The platform offers some of the lowest fees in the industry. Some spreads are as low as 0.0 pips, though, it is important to note that for these trades it will cost you a commission of $3.5.

 

In addition to its raw spread account, IC Markets also offers a regular trading account as well as an Islamic trading account. To help beginners make their first plunge into the world of trading, IC Markets has a well-designed demo account that uses real-world prices to provide investors with an accurate experience. Additionally, the platform has social trading capabilities, with users able to automatically mirror the trades of more experienced users through ZuluTrade.

 

With a good range of assets and 1:500 leverage available, IC Markets is one of the best high-leverage brokers today. While it could benefit from TradingView's integration, it's a well-rounded platform with a lot to offer.

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Frequently Asked Questions About ECN Brokers

Here are some frequently asked questions by prospective beginner traders about ECN brokers. You can understand this question below.

What is ECN?

A computerized system that automatically connects buyers with sellers through their orders for the same securities on the public market is known as an ECN or 'electronic communication network'.

What are the advantages of ECN Forex brokers?

Using an ECN broker limits price manipulation, increases transparency, and provides better trading conditions Once you know about the best ECN brokers, you can start trading on GIC so that you can get all the advantages described above. To get started, you can register first so that you can use an ECN account from GIC!