Top 10 ECN Brokers - Fees and Spreads Compared

Top RAW/ECN accounts Fees And Spreads Compared

OANDA ECN Account

OANDA Review

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The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

FOREX.com ECN Account

FOREX.com Review

Forex.com is a company owned by GAIN Capital Holdings, Inc. (NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, FCA (No. 113942).

Interactive Brokers ECN Account

IBKR Review

Interactive Brokers is among the best-known US investment companies, operating since 1977. The broker offers to trade currency pairs, but its basic instruments are stocks, CFD, indices, metals, ETF, futures, and other exchange market assets. You can also trade cryptocurrencies on Interactive Brokers. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA), and other international financial regulation commissions. In 2020, the broker was awarded the "Best Online Broker” (Barron's) and "Best Broker for Economical Investments" (NerdWallet) titles and got five stars in the Online Stock Trading for Traders category (Canstar). Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.

Tradiso ECN Account

Tradiso Review

Tradiso offers trading different financial assets, including currency pairs, cryptocurrencies, and CFDs on indices, stocks, and commodities. The company is registered in Kingstown, St. Vincent and the Grenadines, but its activities are not regulated by any financial authorities. Thus, Tradiso provides its services without a license.

RoboForex ECN Account

RoboForex Review

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RoboForex is a brokerage company that was founded in 2009. RoboForex is a leading software developer in the Forex industry and one of the best Forex brokers based on client reviews.

RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437).

Pocket Option ECN Account

Pocket Option Review

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Pocket Option is an innovative Forex and binary options broker with over $500 million in trading volume. It offers active trading on financial markets, copy trading, and passive income on holding funds in dollar and cryptocurrency safes. The broker provides an in-house platform to trade binary options and MetaTrader platforms to trade CFDs on currencies, cryptocurrencies, stocks, indices, and commodities. Pocket Option was incorporated in 2017. The broker’s service is available in more than 95 countries and regions globally. Today, over 10 million users are registered with the broker, and 100,000 traders regularly use its services. In July 2023, it obtained a license from Mwali International Services Authority number T2023322.

Exness ECN Account

Exness Review

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The Exness brand is known worldwide due to its profitable trading conditions, high-security level, and wide range of financial instruments. It focuses on trading CFDs, especially currency pairs. Cryptocurrencies, commodities, stocks, and derivative stock indices are also available. Exness offers account types for novice traders, more experienced traders, and professionals. It allows traders to use a variety of strategies including passive ones, such as copy trading and algorithmic trading. The proprietary Exness platform for social trading is used by over 20,000 investors globally. The broker’s activities are legal and its services are available in over 130 countries. Exness is supervised by 8 financial commissions, including CySEC (Cyprus, 178/12), one of the strictest European regulators, and FCA (UK, 730729), FSA (Seychelles, SD025), FSC (BVI) SIBA/L/20/1133, CBCS (Curacao, 0003LSI), FSCA (South Africa, 51024), and CMA (Kenya, 162). The broker offers demo and cent accounts for novice traders, as well as standard and ECN account types for experienced traders.

Eightcap ECN Account

Eightcap Review

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Eightcap offers more than 800 trading instruments, namely CFDs [contract for (price) differences] on currency pairs, cryptocurrencies, indices, stocks, commodities, and precious metals. The broker has a minimum deposit of $100, a free demo account, and two live account types, which differ in trading costs. One account type has standard spreads without a fee, and the other has raw spreads that carry a brokerage fee. The maximum leverage is 1:500. Traders can use any strategy with minimal restrictions. Trading is carried out through MetaTrader 4, MetaTrader 5, and TradingView. Eightcap has two main features. First, the broker has a powerful training and analytical base. Second, the platform offers a number of unique tools, for example, Capitalise.ai, which provides automated trading with minimal risk. At the same time, there are no options for passive income, not even a referral program.

FBS ECN Account

FBS Review

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76.5% of retail accounts lose money when trading ᏟᖴᎠs with this provider.

FBS (fbs.com) is an international broker operating in 190 countries. The brokerage company has been on the market for over 10 years, and during this time it has earned about 40 international awards. It is regulated by the CySEC under license number 331/17 and provides flexible conditions for Forex trading. In addition to classic currency pairs, the company's clients can trade indices, futures contracts, exotic currencies, and metals. FBS is especially popular in Asian countries such as India, Malaysia and Indonesia.

TeleTrade ECN Account

TeleTrade Review

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TeleTrade was established in 1994. The company won 2018 Traders Union Awards as the Best Broker in Europe. The brokerage company is a member of the Association of Forex Dealers, a self-regulatory organization in the financial market. The company is also regulated by the Cyprus Securities and Exchange Commission (CySEC, 158/11). The European branch of TeleTrade has adopted the brand name Earn.
The broker provides access to trading various currency pairs, as well as metals, stocks, cryptocurrencies, indices, and energies.

What is an ECN Forex Broker?

ECN provides the traders with direct access to other currency and equity markets’ participants by working as a financial intermediary. An ECN broker usually offers the traders tighter (ask or bid) spreads because it consolidates multiple market participants’ price quotations. Moreover, it can’t trade against the users as it only matches different available trades among the participants of another market. The spreads available on the ECN accounts are narrower as compared to the ones available on the conventional brokers. But you need to keep in mind that you’ll be charged a fixed commission fee on each transaction while working with ECN brokers.

How do ECN Brokers work?

In order to execute trades, ECN comes with an electronic communication system for both sellers and buyers. It achieves it by providing the required information about the orders taking place and managing their execution. The system is crafted to match sell and buy orders which are present in the exchange currently. Moreover, if the information regarding a specific order is not available, the ECN system offers the prices that reflect the lowest ask and highest bid present in the open market.

Using ECN Forex brokers allows you to trade even trade outside the market’s traditional trading hours. This feature especially comes in handy for those people who want to utilize the flexibility of time or who can’t trade actively during the traditional market time.

Trader

Major Banks

ECN

Companies

Liquidity Provider

ECN Account vs. Standard Account: What to Choose?

One of the biggest differences between the two accounts is that the standard account usually has a fixed spread. In any position, the broker in the standard account plays the role of the counterparty most of the time. On the other hand, an ECN account provides you with liquidity via a network. In simple words, it means that they're different offers and bids available for you to trade as the spread between bid or asked price is usually tighter. Some of the most important differences between an ECN account and the standard account are as followed:

ECN Account vs. Standard Account

Fee

The very first thing you need to determine is the amount of money that you’re willing to consume. That’s because you need to find a broker that’s not only reliable but also justifies the cost. Keep in mind that gone are the days of the wild west of Forex trading. With time it has become transparent and sophisticated, and now you can choose the type of brokerage and account that suits you the best. That's where this article comes into play that contains the best ECN brokers that offer value for your money.

Forex Accounts Comparison

Is ECN good for scalping?

ECN is an excellent option for scalping. There are several ECN features that give it an advantage when it comes to scalping as a trading strategy.

As we know, scalping takes advantage of small price movements by quickly entering and exiting trades. Therefore, it is a high-frequency trading option with special features for success. ECN has the following qualities that make it perfect for scalping:

High Liquidity

Due to the high number of traders willing to buy and sell on ECN at various price points, it experiences high liquidity which is beneficial for scaling. High liquidity provides for faster execution because the high volume of traders means they are more likely to find matches for their trades.

This quality is especially useful for scalpers who need to be fast when entering and exiting trades as they attempt to capture small price differences and thus maximize their profit.

Low Costs

Out of the options scalpers have, ECN offers some of the lowest trading fees on the market. For a high-risk trading strategy such as scalping, the lower the non-trading costs the better.

Direct Market Access

Direct market access means that traders can interact directly with the order books of participants such as banks and institutions, in addition to other traders thus widening their scope.

Direct access thus reduces execution time while reducing slippage, attributes that are invaluable for scalpers.

Tight Spreads

Tight spreads are essential when reducing risk. ECN brokers can easily provide tighter spreads because they aggregate prices from a wide range of liquidity providers. For traders who need to act fast, reducing risk is essential.

Depth of Market

Depth of market refers to the buy and sell order data at various price points. This depth of market gives scalpers more information about the market allowing them to make more informed decisions about their high-risk trades.

How to Choose an ECN Broker?

Please tell us what factors to look for when choosing an ECN Broker

Although ECN is a great option for scalping, not all ECN brokers are made equal. For your scalping trading strategy to work, you need to choose a broker who is best suited to your needs.

Here is what you should consider when choosing an ECN broker:

Spreads and Fees

A good ECN broker has tight spreads and affordable fees. Avoid ECN brokers with spreads wider than 0.3 pips and fees higher than $1-$2 per lot.

Regulation and Trustability

Always trade with ECN brokers who are regulated by either a regional or international regulatory body. Once you have identified the regulatory body that the ECN broker should be under, go to that regulatory authority’s site and confirm that the broker’s official name is in their database of licensed brokers.

Servers (Speed of Trades)

Choose a broker who has adequate trading speeds. You can tell this by looking at reviews from other users, observing how fast real-time data is updated on the site, and using a demo account to compare your past experiences.

VPN and other Extra Features

VPN may be necessary for traders who want to trade privately. However, many ECN brokers do not allow VPN use due to privacy and security concerns. Check local laws to confirm if you can safely use the VPN.