True ECN Brokers

True ECN Brokers

True ECN Brokers
Online BrokerFX Spreads LowCommission ChargePlatformRegulated
0.0
FX Spreads Low
$3.76
Commission Charge
MT4, cTrader
Trading Platforms
FCA, ASIC
Regulation
0.0
FX Spreads Low
$3.50
Commission Charge
MT4, MT5, cTrader
Trading Platforms
ASIC
Regulation
0.1
FX Spreads Low
$3.50
Commission Charge
MT4, JForex
Trading Platforms
FCMC
Regulation
0.1
FX Spreads Low
$4.00
Commission Charge
MT4, JForex
Trading Platforms
MFSA
Regulation

True ECN brokers: Replicating Some Conditions of the Interbank Market

Brokers take the prices offered on the trading platform from liquidity providers in the Interbank markets and other sources. However what the trader is given can be different from these prices. Some brokers aim to provide these prices and other conditions, for the retail trader. In the liquid Forex market, this can result in very low spreads.

Normally, these are available with a commission charge added. This is typically for Forex, Spot Silver and Gold, though some may also charge commissions for other markets. However there are other factors as well.

Some brokers aim to effectively replicate the trading conditions of the Interbank market. They can provide very fast order execution. This can be achieved by co-location of the broker's servers with finance hubs, typically New York and London and the use of high speed data transmission.

So a feature of an ECN broker is low Forex spreads, usually an abbreviated selection of markets compared with non-ECN brokers, fast order execution, low Forex prices (both average and minimum) and a commission charge.

An important feature is no dealing desk conditions, which means that the broker does not intervene in the order process, in terms of rejecting or requoting orders and determining what styles are acceptable. Thus at an ECN broker it can be possible to automate trading, news trade and to scalp (though these may be strategies suited to more advanced traders). ECN brokers will usually have MT4 and a platform optimised for ECN trading, like MT5, cTrader or JForex.

What platform does NSFX offer ?

NSFX provides MT4 and JForex. To use MT4 ECN requires a minimum deposit of $3000. To use JForex requires a minimum deposit of $5000.

What platforms do Pepperstone and IC Markets offer ?

Both brokers offer MT4 and cTrader. IC Markets additionally provides MT5. For IC Markets, the minimum deposit is $200. For Pepperstone UK, the minimum deposit is £100.

What platform does Dukascopy provide ?

Dukascopy offers JForex. The minimum deposit for Dukascopy EU is $100.

What is the commission charge for NSFX ?

For ECN trading, NSFX has a commission charge of $8 per standard lot round trip ($4 per lot per side).

What are Pepperstone and IC Markets's commission charges ?

Pepperstone charges a commission of $3.76 per standard lot per side, except for cTrader which charges a commission of $3.5 per standard lot per side. For the MT4 accounts, the deposit currency determines the currency of the commission charge. For cTrader, the commission charge is determined by the traded currency. IC Markets charges a commission of $3 per standard lot per side, except for cTrader which charges $3 per standard lot per side.

What is Dukascopy's commission charge ?

Dukascopy charges a commission which varies depending on the volume traded, the initial deposit and equity in the account. For Forex, Dukascopy commissions range from $35 per million USD per side ($3.5 per standard lot per side), to $10 per million USD traded per side ($1 per standard lot per side). For other markets except Stocks, Dukascopy commissions range from $52.5 per million USD per side, to $15 per million USD per side.

Do these companies provide cryptocurrency trading ?

Some provide Cryptocurrency CFD trading (where the trader does not own the underlying cryptocurrency and does not need a wallet). IC Markets, Pepperstone and Dukascopy have a range available, including Bitcoin and Ethereum. These are available under ECN trading conditions, though no commission is charged.

Are all these brokers regulated ?

Yes, IC Markets and Pepperstone are both regulated by the ASIC in Australia. Pepperstone is regulated by the FCA in the United Kingdom. Dukascopy EU is regulated by the FCMC in Latvia and NSFX is regulated by the MFSA in Malta.

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