WHAT IS AN ‘ECN / STP BROKER’
An ECN (Electronic Communications Network) or an STP (Straight Through Processing) broker is a forex financial institution who uses Electronic Communications Network to provide its clients direct access to other participants in the currency markets. Because an ECN broker consolidates price quotations from several market participants, it can generally offer its clients tighter bid/ask spreads than would be otherwise available to them.
An ECN attempts to eliminate the third party’s role in executing orders entered by an exchange market maker or an over-the-counter market maker, and permits such orders to be entirely or partly executed. Orders placed through ECNs are usually limit orders.
ECNs display the best available bid and ask quotes from multiple market participants, then automatically match and execute orders. They not only facilitate trading on major exchanges during market hours, they are also used for after-hours trading and foreign currency trading. ECNs allow for automated trading, passive order matching and speedy execution. Some ECNs are designed to serve institutional investors, while others are designed to serve retail investors.
Recommended Minimum Deposit: £2000.00 / $2000.00 / €2000.00
Maximum Leverage: 1:200
Spreads: From Zero
|Size (Millions of USD)||Commission (USD per Million)|