The primary products that are traded on ECNs are stocks and jimmakos forex broker. There is no central exchange for Forex and trading is performed on an Over The Counter market. 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.
Forex ECN can best be described as a bridge linking smaller market participants with tier-1 liquidity providers through a ECN Forex Broker. On the other side, the broker delivers clients’ orders to Liquidity Providers for execution. With ECN broker traders can see where the liquidity is and execute trades. Anonymity enables traders to deal on neutral prices, which reflect the real market conditions only. Straight through processing with banks liquidity.
The ECN model allows clients to trade on the global liquidity of world-class banks and qualified financial institutions. ECN Forex brokers always have variable spreads. Customers can trade on prices streamed by multiple large banks and prime brokers. A forex trader generally benefits from greater price transparency, faster processing, increased liquidity and more availability in the marketplace. All market participants are given an equal access and fair trading environment to best prices best spreads and fastest executions. 10 of a pip on all majors.
A greater number of marketplace participants providing pricing to the ECN broker leads to tighter spreads. Banks reduce their costs as there is less manual effort involved in using an ECN for trading. ECN brokers are interested in their clients to be winning, otherwise there will be no commission to earn. An ECN broker benefits from commission fees per transaction.
The higher trading volume the broker’s clients generate, the higher the broker’s profitability. Trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.