{"id":504906,"date":"2021-09-03T06:04:00","date_gmt":"2021-09-03T06:04:00","guid":{"rendered":"https:\/\/www.publicfinanceinternational.org\/?p=504906"},"modified":"2024-01-03T14:31:28","modified_gmt":"2024-01-03T14:31:28","slug":"best-ecn-brokers","status":"publish","type":"post","link":"https:\/\/www.publicfinanceinternational.org\/best-ecn-brokers\/","title":{"rendered":"10 Best ECN Brokers 2024"},"content":{"rendered":"\n

We ranked ECN Brokers based on the most important factors such as fees, security, execution, regulation, platforms, tools, and more. <\/p>\n\n\n\n\n\n\n\n

List of The Top ECN Brokers 2024<\/h2>\n\n\n\n

Below, we list the best ECN brokers. We base our research on various factors such as fees, commissions, spreads, account types, trading tools, forex trading platforms, security, regulation, and more.<\/p>\n\n\n

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Here are the top rated ECN Accounts:<\/strong><\/p>\n\n\n\n

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  1. Pepperstone<\/strong> – Best ECN Forex Broker Overall <\/li>\n\n\n\n
  2. FP Markets<\/strong> – Best ECN Forex Broker With Tight Spreads<\/li>\n\n\n\n
  3. Interactive Brokers<\/strong> – Best ECN Broker for US Clients Overall<\/span><\/li>\n\n\n\n
  4. IC Markets<\/strong> – Trusted ECN Broker<\/span><\/li>\n\n\n\n
  5. XM<\/strong> – Great ECN Broker for Education Tools<\/li>\n\n\n\n
  6. FXTM<\/strong> – Good ECN Broker for Customer Service<\/li>\n\n\n\n
  7. RoboForex<\/strong> – Best Micro Account ECN Forex Broker<\/li>\n\n\n\n
  8. Forex.com<\/strong> – Fast Execution ECN Broker<\/li>\n\n\n\n
  9. InstaForex<\/strong> – Good Trading Tools Forex ECN Broker<\/li>\n\n\n\n
  10. Exness<\/strong> – Good ECN Broker for Research Tools<\/li>\n<\/ol>\n\n<\/div><\/div>\n\n
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    \"ECN<\/figure>\n\n<\/div><\/div>\n<\/div>\n<\/div>\n\n
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    Runner Up<\/p>\n\n\n

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    \"Interactive<\/figure><\/div>\n\n
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    PFI Rating<\/strong> 4.9<\/p>\n\n<\/div><\/div>\n\n

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    <\/svg><\/span><\/div>\n<\/div>\n\n<\/div><\/div>\n<\/div><\/div>\n\n
    \n\nVisit IBKR<\/strong><\/span><\/path><\/svg><\/span><\/a>\n\n<\/div>\n\n\n

    <\/p>\n\n<\/div><\/div><\/div>\n\n

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    Best Overall<\/p>\n\n\n

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    \"Pepperstone<\/figure><\/div>\n\n
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    PFI Rating<\/strong> 4.9<\/p>\n\n<\/div><\/div>\n\n

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    <\/svg><\/span><\/div>\n<\/div>\n\n<\/div><\/div>\n<\/div><\/div>\n\n
    \n\nVisit Pepperstone<\/strong><\/strong><\/span><\/path><\/svg><\/span><\/a>\n\n<\/div>\n\n\n

    Disclaimer<\/strong>: 76.6% of retail investor accounts lose money when trading CFDs with this provider<\/strong><\/p>\n\n<\/div><\/section><\/div>\n\n

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    Low Spreads<\/p>\n\n\n

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    \"FP<\/figure><\/div>\n\n
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    PFI Rating<\/strong> 4.9<\/p>\n\n<\/div><\/div>\n\n

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    <\/svg><\/span><\/div>\n\n\n\n
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    <\/svg><\/span><\/div>\n<\/div>\n\n<\/div><\/div>\n<\/div><\/div>\n\n
    \n\nVisit FP Markets<\/strong><\/span><\/path><\/svg><\/span><\/a>\n\n<\/div>\n\n\n

    69.0% of retail investor accounts lose money when trading CFDs with IBKR.<\/strong><\/p>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n\n

    What is an ECN?<\/h2>\n\n\n\n

    An Electronic Communication Network (ECN)<\/strong> is a computerized network that acts as a financial intermediary that matches buy and sell orders for securities outside traditional stock exchanges. It works by “cutting out the middleman” in forex trading. Where other brokers set their ask price for buying and selling securities, ECN trading platforms offer a straight-through processing execution to clients. <\/p>\n\n\n\n

    In a study “ECNs, Market Makers, and Liquidity,” Hendershott and Mendelson (2000) found that ECNs offer superior execution quality compared to traditional market makers. Hendershott and Mendelson observed that trades executed on ECNs generally have smaller average quoted, realized, and effective spreads. Further, ECNs have been linked to improvements in overall market quality. ECNs are likely to attract more informed orders than uninformed ones. This contradicts the general trend where secondary markets usually attract less-informed orders.<\/p>\n\n\n\n

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    \"How<\/figure>\n\n\n\n

    What is an ECN Broker?<\/h3>\n\n\n\n

    An ECN broker is a financial intermediary that gives traders direct access to participants in the currency and equity markets<\/strong>. By gathering price quotations from several providers, an ECN broker can provide tighter bid\/ask spreads than those through non-ECN accounts.<\/p>\n\n\n\n

    How do ECN Brokers work?<\/h3>\n\n\n\n

    ECN brokers are NDD (non-dealing desk) brokers that electronically match clients in a trade to liquidity providers. They don't pass on order flow to market maker brokers. An ECN broker executes orders on financial markets across the ECN.<\/p>\n\n\n\n

    \"Trader<\/figure>\n\n\n\n

    Who can trade with an ECN account?<\/h3>\n\n\n\n

    Primarily, market makers use ECNs for NASDAQ trades, but retail traders and small firms can also use them.<\/p>\n\n\n\n

    Should you pick an ECN account?<\/h3>\n\n\n\n

    In a study conducted, “The Role of ECNs in the Securities Trading Value Chain,” Weston (2006) discussed the choice of online brokers, emphasizing that while ECNs offer benefits like speed of execution and sometimes better prices, market makers sometimes provide price improvements, especially on small trades. Based on your trading volume and needs, you should determine whether an ECN account is beneficial.<\/p>\n\n\n\n

    How to pick an ECN Broker?<\/h3>\n\n\n\n

    When picking an ECN broker, you should consider many factors, including regulation, security, fees, speed of servers, VPN availability, and more. The broker you pick should meet your requirements. Below we go into each in more detail. <\/p>\n\n\n\n