Introduction to ECN Forex

ECN is an abbreviation of Electronic Communication Network. The phrase ECN is by no means exclusive to the financial markets and the online trading industry, but we use it too. In Forex, ECN trading means electronically sending (communicating) orders to a venue (network).

Consider a stock exchange; it’s a venue where participants can use online (electronic) platforms to submit orders, and they are matched against other participants. In the same way that you can’t just open an account with the New York Stock Exchange, so you need a broker to give you access, an ECN forex broker provides access to a decentralised foreign exchange environment.

The benefits of an ECN Forex broker

  • Tight spreads and low trading costs
  • Deep liquidity and better execution quality
  • Low latency execution in an anonymous trading network
  • Less negative slippage and more positive slippage
  • No dealing desk intervention or requotes on your orders
  • No conditions prohibiting scalping or Expert Advisors

Start trading with ECN spreads as low as 0.0 Pips