If you are involved in Forex and you would like to be more successful with your trading, then you should know that you can easily get a helping hand by getting in touch with the ECN Brokers. ECN stands for electronic communication network and these professionals make use of an electronic interbank network in order to get in touch directly with market participants like retail traders, market makers, financial institutions and so on. Even though you will find there when it comes to their Forex trading platform there is no fixed price, you will be able to see the ask price and the bid price. The fact is that price is always influenced by what the other trader has to offer.
And this is where the electronic communication network brokers come in the scene, because they can provide their clients with great prices in regards to trading in the forex market. ECN brokers will charge commissions per transaction, because they are the ones who will provide people access to the rest of the market participants. Regular brokers will actually charge commissions based on spreads. In some cases, the ECN brokers may also charge his clients based on their trading volume.
If you are involved in the world of Forex and you would like to try something different, then making use of ECN brokers may very well be one of the best changes you make in your trading style. First of all, the ask and the bid prices are going to be based on multiple sources and this means that as a trader, you will be able to get an even better price than if you would trade using a single source. More to that, if the ECN broker you work with is genuine, he will not get involved in trading against you, as plenty of market makers out there do. They will just fulfill their duties and they are to have your orders passed to the counterpart of the transaction or to the bank.
Going with a genuine broker you will also decrease the risk of manipulation. These brokers work with the market participants directly, which means they're very experienced in what they do and are also well regulated. What this amounts to is less slippage during news releases.
Using ECN brokers is certainly recommended, but there are also a few disadvantages you have when doing so. Because the spread is going to vary depending on the ask and bid price, it becomes a little hard to set stop losses along limit orders. On top of that, they have a platform which is not that easy to use, offering fewer notifications, indicators and charts, because they are practically targeting more seasoned traders. There is the assumption that as a trader you have already done your technical analyses independently, because if you didn't, then you will need to pay for extra charts.
As you can see, if you choose to go with an ECN forex broker, then you will have more control over your rates. Eventually, this will actually allow you to make more money, so do consider well how much you need one such professional!