The 5 Best ECN Forex brokers in Malaysia revealed. We have explored and tested several prominent ECN Forex brokers for forex trading in Malaysia to identify the Top 5.
This is a complete guide to the 5 Best ECN Forex brokers in Malaysia. In this in-depth guide you’ll learn:
- The Best ECN Forex Brokers (OctaFX, Pepperstone, HFM, FXTM, and, Tickmill) in Malaysia – a List
- The Best ECN Forex Brokers with the Lowest Spread, a No-Deposit Bonus, No Commission, Low Deposit, MetaTrader4 (MT4/MT5), and, for Scalping plus Cryptocurrency
- Are Deriv, FBS, XM, IC Markets, and, FXPro ECN Brokers?
- Are There True ECN Brokers in Malaysia?
- Are ECN Brokers better than STP Brokers?
- What is an ECN Forex Broker – Meaning (A Definition)
and much, MUCH more!
The 5 Best ECN Forex Brokers in Malaysia – a Comparison
| 🔎 Broker | 📌 ECN Broker | 💯 Trust Score (99) |
| 🥇 OctaFX | ✅Yes | 61 |
| 🥈 Pepperstone | ✅Yes | 92 |
| 🥉 HFM | ✅Yes | 83 |
| 🏅 FXTM | ✅Yes | 93 |
| 🎖️ Tickmill | ✅Yes | 81 |
The 5 Best ECN Forex Brokers in Malaysia (2025)
- ☑️ OctaFX – Overall, the Best ECN Forex Broker in Malaysia
- ☑️ Pepperstone – Seamless and free deposit and withdrawal.
- ☑️ HFM – Highly Regulated Forex Broker for Beginners
- ☑️ FXTM – Low (MYR) Fee Broker for Malaysian Traders
- ☑️ Tickmill – Low Spreads and Competitive Commissions
OctaFX
OctaFX is an STP-ECN broker that provides competitive spreads, protection against negative balances, lightning-fast order execution, no slippage, and no requotes. OctaFX is a registered trademark of Octa Markets Incorporated, a firm incorporated in St. Vincent and the Grenadines, which allows for increased leverage and other advantages for customers.
Malaysian investors who want a low-cost entry point into trading many asset classes will find OctaFX to be an excellent option. Even though FX (foreign exchange) trading is the platform’s main feature, other asset classes can also be traded.
OctaFX Overview
| 🔎 Broker | 🥇 OctaFX |
| 📌 Regulation | Financial Services Authority in Saint Vincent and the Grenadines (SVG FSA), and Cyprus Securities and Exchange Commission (CySEC) |
| 📍 BNM Regulation | None |
| 📈 Trading Accounts | MetaTrader 4 Habitual Trader Account, MetaTrader 5 Smart Trader Account |
| 📉 Trading Platform | MetaTrader 4, MetaTrader 5, cTrader |
| 💴 Minimum Deposit in MYR | 23,20 MYR or $5 |
| 📊 Trading Assets | Forex Currency Pairs, Index CFDs, Commodities, Cryptocurrencies |
| 💵 MYR-based Account | None |
| 💶 MYR Deposits Allowed | None |
| 🎁 Bonuses for Malaysian traders | ✅Yes |
| 💹 Minimum spread | From 0.6 pips |
| 🆓 Demo Account | ✅Yes |
| ☪️ Islamic Account | ✅Yes |
OctaFX Pros and Cons
The Pros of Trading with OctaFX will include:
- ✅ You can easily and securely make deposits and withdrawals using OctaFX.
- ✅ The broker welcomes traders of all skill levels and experiences through its open and secure trading platform, offers copy trading accounts via its trading app, and encourages social trading.
- ✅ OctaFX provides Muslim traders with an Islamic Account and a virtual trading account with no limits; it also offers commission-free trading on all retail investor accounts with tight spreads.
- ✅ OctaFX offers a comprehensive range of cutting-edge trading tools in addition to several safe deposit and withdrawal options.
However, the drawbacks of working with an offshore broker regulated at the lower, less attractive tier 2 include restrictions on trading products, restricted possibilities for retail accounts, and alternate currency basis options.
Does OctaFX have requotes?
No. Dealing desk brokers are any brokers who re-quote your orders. Any time the dealer (human or automated) on the opposite side of the trade specifies an execution delay during which the price changes, a requote takes place.
Can Malaysian traders scalp with OctaFX?
Yes, unlike some brokers who prohibit scalping, OctaFX accepts scalpers.
Pepperstone
Pepperstone has established itself as a major ECN broker. Pepperstone can benefit from its STP (straight-through-processing) techniques as well.
Because of its low spreads, Pepperstone is frequently recognized as the best ECN forex broker available. Pepperstone is particularly suited for integration with electronic communication networks (ECNs) because of its quick execution and minimal spreads.
Pepperstone supports all major trading platforms, including MetaTrader 4 and MetaTrader 5, as well as cTrader.
Pepperstone Overview
| 🔎 Broker | 🥇 Pepperstone |
| 📌 Regulation | ASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB |
| 📍 BNM Regulation | None |
| 📈 Trading Accounts | Standard Account Razor Account Professional Account Demo Account Islamic Account |
| 📉 Trading Platforms | MetaTrader 4 MetaTrader 5 cTrader TradingView Myfxbook Duplitrade |
| 💴 Minimum Deposit in MYR | 595 MYR equivalent to AU$200 |
| 📊 Trading Assets | Forex Indices Shares Commodities Cryptocurrencies Futures Options |
| 💵 MYR-based Account | None |
| 💶 MYR Deposits Allowed | ✅Yes |
| 🎁 Bonuses for Malaysian traders | None |
| 💹 Minimum spread | From 0.0 pips |
| 🆓 Demo Account | ✅Yes |
| ☪️ Islamic Account | ✅Yes |
Pepperstone Pros and Cons
The Pros of choosing to trade with OctaFX include:
- ✅ Pepperstone Markets is a leading CFD and forex broker that safeguards customer funds and protects investors.
- ✅ Pepperstone Markets welcomes Malaysian traders and provides local deposit and withdrawal options.
- ✅ Pepperstone Markets is well-regulated in several international jurisdictions.
- ✅ Trading platforms are accessible from multiple devices, and trading accounts offer competitive trading terms.
Finally, there is negative balance protection for retail accounts, social trading options, and a robust affiliate program. However, the Cons of Trading with Pepperstone may include:
- ✅ Fixed spreads are unavailable
- ✅ Malaysian traders do not have access to trading accounts denominated in MYR
- ✅ The Islamic Account is associated with additional fees.
Furthermore, The Islamic Account is subject to regional restrictions, and traders are required to provide proof of residency before account conversion.
Which trading platforms does Pepperstone offer to Malaysian traders?
Pepperstone supports all major trading platforms for Malaysian traders, including MetaTrader 4 and MetaTrader 5, as well as cTrader.
Is Pepperstone a pure ECN broker?
No, Pepperstone offers ECN and STP conditions.
HF Markets
HFM is a well-regulated and worldwide acknowledged brokerage firm that was founded in 2010. HFM gives Malaysian traders access to hundreds of global financial marketplaces while trading fairly and transparently.
Since its debut, HFM has over 1.5 million registered clients and has garnered over 25 industry accolades.
The HF App, which allows Malaysian traders access to their accounts as well as a wide choice of trading tools, news, and financial research, distinguishes HF Markets from the competition. When you join HF Markets, you receive access to a broader range of tradable assets, such as specialized CFDs, than with other brokers.
HF Markets Overview
| 🔎 Broker | 🥇 HF Markets |
| 🏦 Regulation | FSCA, CySEC, DFSA, FSA, FCA, FSC, CMA |
| 💱 Tier-1 Licenses | Financial Conduct Authority (FCA) |
| 📉 Regional Restrictions | The United States, Canada, Sudan, North Korea, and Syria |
| ☪️ Islamic Account | ✅Yes |
| 🆓 Demo Account | ✅Yes |
| ⏰ Non-expiring Demo | ✅Yes |
| ⏱️ Demo Duration | Unlimited |
| 4️⃣ Retail Investor Accounts | 4 |
| 📌 PAMM Accounts | ✅Yes |
| 💧 Liquidity Providers | Barclays UK, BNP Paribas, and others |
| 🤝 Affiliate Program | ✅Yes |
| 💻 Order Execution | Market |
| 📊 Minimum Commission per Trade | From $6 per round turn on Forex |
| 🖇️ Decimal Pricing | 5th decimal pricing after the comma |
| ▶️ Margin Call | Between 40% to 50% |
| ⛔ Stop-Out | Between 10% and 20% |
| 📉 Minimum Trade Size | 0.01 lots |
| 📈 Maximum Trade Size | 60 lots |
| 🪙 Crypto trading offered | ✅Yes |
| 📌 Maximum Leverage | 1:2000 |
| 💷 Minimum Deposit (MYR) | 25 MYR ($%) |
| 🔟 Rating for HFM Malaysia | 9/10 |
| 💯 Trust score for HFM Malaysia | 85% |
HF Markets Pros and Cons
The Pros of trading with HFM will include:
- ✅ EUR/USD spreads start at 0.0 pips and are tight and competitive.
- ✅ A demo account is accessible for both new traders and seasoned traders to test methods.
- ✅ Deposits in Malaysian Ringgit are accepted.
- ✅ HFM enables Malaysian traders to trade a wide range of asset types.
- ✅ MetaTrader 4 and 5 are available as desktop applications, smartphone apps, and web-based platforms.
However, HFM only provides Malaysians with a few deposit and withdrawal options.
Is HFM safe to use for Malaysian traders?
Yes, HFM is well-regulated and offers a variety of security measures to its customers.
Is HFM an award-winning broker?
Yes, HFM has won over 25 industry awards.
FXTM
Over 800 individuals work for FXTM, which was founded in 2011 and currently has eleven global centers. On FXTM Invest, also known as a directory of strategy providers, traders and investors in Malaysia can find a list of recommended traders to follow.
The followers of other Strategy Providers can open an account and pay just $100 to copy their trades.
Malaysian traders who use FXTM Invest split profits from trades they execute, but everyone benefits more from the Strategy Provider’s clientele’s success.
FXTM Overview
| 🔎 Broker | 🥇 FXTM |
| 📌 Regulation | CySEC, FSCA, FCA, CMA, FSC Mauritius |
| ☪️ Islamic Account | ✅Yes |
| 🆓 Demo Account | ✅Yes |
| 💴 Minimum Deposit (MYR) | 47 MYR ($10) |
| 💵 MYR Deposits Allowed | ✅Yes |
| 🔟 Retail Investor Accounts | 3 |
| 📈 Starting spread | 0.0 pips, variable |
| 📉 Account Base Currency | USD, EUR, GBP, NGN |
| 🥰 Customer Support Languages | Multilingual |
FXTM Pros and Cons
The Pros of trading with FXTM will include:
- ✅ FXTM is a well-known and multi-regulated trading platform.
- ✅ FXTM provides its customers with rapid deposit and withdrawal methods with quick processing times.
- ✅ FXTM does not charge deposit fees.
- ✅ FXTM provides a variety of educational resources.
Finally, FXTM provides dedicated, local service in different languages. However, there are inactivity fees that will be applied if the trading account goes dormant
Does FXTM provide low spreads?
Yes, spreads at FXTM start as 0.0 pips.
Does FXTM offer copy trading to Malaysian traders?
Yes, Malaysian traders can access copy trading through FXTM’s Strategy Providers.
Tickmill
Since its launch in 2014, Tickmill has grown significantly; it now serves over 110,000 customers and processes more than USD 120 billion in trading activity each month.
Tickmill is a well-known brand when it comes to electronic communication networks (ECNs). The Financial Services Authority (FSA) of the Seychelles and the Financial Conduct Authority (FCA) of the United Kingdom are in charge of regulating them.
The foreign exchange (FX), stock index, commodities, contract for difference (CFD), and precious metals markets are accessible to both individual and institutional traders using Tickmill.
Tickmill Overview
| 🖇️ SCM Regulation | No, but it is regulated by the Financial Services Authority of Labuan in Malaysia |
| ❎ Regional Restrictions | The United States |
| ☪️ Islamic Account | ✅Yes |
| 🆓 Demo Account | ✅Yes |
| ⏰ Non-expiring Demo | ✅Yes |
| ⏱️ Demo Duration | Unlimited |
| 🔟 Retail Investor Accounts | 3 |
| 📈 PAMM Accounts | MAM Accounts |
| 💧 Liquidity Providers | Barclays and other top-tier banks, as well as hedge funds |
| 🤝 Affiliate Program | Yes |
| 📉 Order Execution | Market |
| 💴 Minimum Deposit (MYR) | 465 MYR ($100) |
| 💵 Deposit Currencies | USD, GBP, EUR, IDR, CNY, VND, RUB |
| 💶 MYR Deposits Allowed | None |
| 💷 Account Base Currency | USD, EUR, GBP, PLN |
| 💻 Trading Platforms | MetaTrader 4 MetaTrader 5 Tickmill Mobile App |
| 📈 Tradable Assets | Forex Stock Indices Energy Indices Precious Metals Bonds Cryptocurrencies Stocks |
| 🥰 Customer Support Languages | Multilingual |
| ✔️ Copy Trading Support | ✅Yes |
| ⏰ Customer Service Hours | 24/5 |
| ↪️ Malaysian-based customer support | ✅Yes |
| 🎁 Bonuses and Promotions for Malaysia Traders | ✅Yes |
| 📍Education for Malaysian beginners | ✅Yes |
| 🖥️ Proprietary trading software | ✅Yes |
| 😎 Most Successful Trader in Malaysia | Rayn Lim (Net Worth is private) |
| ⏩ Is Tickmill a safe broker for Malaysian Traders | ✅Yes |
| 🔟 Rating for Tickmill Malaysia | 9/10 |
| 💯 Trust score for Tickmill Malaysia | 83% |
Tickmill Pros and Cons
The Pros of trading with Tickmill will include:
- ✅ Tickmill offers robust trading platforms and innovative mobile trading
- ✅ Tickmill has a very high trust score and is known for its competitive trading conditions
- ✅ There are several convenient funding options available including Skrill, Neteller, and others
- ✅ Advanced traders can use a range of tools including FIX API, AutoChartist, VPS, and others
However, there are no fixed-spread accounts offered
Is Tickmill a good ECN broker for Malaysian traders?
Yes, Tickmill is a well-known brand when it comes to electronic communication networks (ECNs).
What type of traders should sign up with Tickmill?
Tickmill is a good option for both retail and institutional traders in Malaysia.
What does an ECN Forex broker do?
For investors in the forex and stock markets, an ECN broker serves as a go-between in the ECN market, facilitating transactions over electronic communication networks. ECN traders frequently benefit from lower gaps between buy and sell prices because an ECN broker aggregates quotes from several dealers.
How to choose the best ECN broker in Malaysia
Malaysian traders must evaluate the following components of an ECN broker to decide whether the broker is suited to their unique trading objectives and/or needs.
Regulations and Licenses
This is the first important component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Malaysians must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.
Account Features
Account Features include leverage trading and margin requirements, commissions and spreads, initial deposits, additional features on retail investor accounts, and so on.
Deposits and Withdrawals
Malaysians must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.
Range of Markets
The range of markets offered refers to the number and range of tradable instruments that the broker offers. Malaysians must consider what they wish to trade and what is available.
Customer Support
Customer Support is another crucial factor and Malaysians must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.
Trading Platform
A trading platform is the Malaysian trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.
Education and Research
Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:
- ✅ eBooks
- ✅ Trading guides
- ✅ Trading knowledge on leveraged products
- ✅ A risk warning on complex instruments
- ✅ Educational videos
Research can include some of the following:
- ✅ Trading tools
- ✅ Commentary
- ✅ Status of International Markets
- ✅ Price movements
- ✅ Market sentiments
- ✅ Whether there is a volatile market
- ✅ Exchange Rates
Expert opinions and several other resources can help experienced traders make informed trading decisions.
The Best Forex Brokers in Malaysia
In this article, we have listed the best brokers that offer ECN trading conditions to Malaysian traders. We have further identified the brokers that offer additional services and solutions to Malaysian traders.
Best MetaTrader 4 – Exness
Overall, Exness is the best MetaTrader 4 broker in Malaysia. Exness is a preferred broker among traders due to its commendable regulatory track record with several agencies and its notable leverage ratios. Exness proves to be an ideal choice for Malaysian traders due to its provision of 24/7 customer support services.
Best MetaTrader 5 – AvaTrade
Overall, AvaTrade is the best MetaTrader 5 broker in Malaysia. AvaTrade, a broker known for its credibility, offers a wide range of trading alternatives over 1,250, encompassing several financial sectors. AvaTrade provides favorable trading circumstances, particularly catering to traders from Malaysia.
Best Forex Broker for Beginners – XM
Overall, XM is the best forex trading platform for beginners in Malaysia. XM offers a diverse range of trading tactics, with a particular emphasis on accommodating beginning traders. XM provides a diverse range of educational resources for individuals seeking to enhance their knowledge in the field of FX trading.
Best Low Minimum Deposit Forex Broker – Alpari
Overall, Alpari is the best minimum deposit forex trading platform in Malaysia. Alpari employs localized methods for facilitating deposit and withdrawal transactions with Malaysian traders. Alpari offers tight spreads and little commissions. Furthermore, Alpari offers copy trading software along with a trading application.
Best ECN Forex Broker – IC Markets
Overall, IC Markets is the best ECN forex trading broker in Malaysia. IC Markets is recognized as one of the limited number of ECN traders that have had a commendable history of success. IC Markets offers a range of account options that cater to various trading methods, including hedging, scalping, and other approaches. Additionally, the platform provides demo accounts, Islamic law-compliant accounts, and accounts with reduced transaction costs.
Best Islamic, Swap-Free Forex Broker – FXCM
Overall, FXCM is the best Islamic/swap-free forex trading platform in Malaysia. FXCM is a globally recognized leader in the provision of retail and institutional foreign exchange (currency) trading and associated services. FXCM, an established entity in the foreign exchange market, holds the distinction of being the inaugural Forex broker to be publicly listed on the New York Stock Exchange. Its establishment dates back to the year 1999.
Best Forex Trading App – FXTM
Overall, FXTM has the best forex trading app in Malaysia. FXTM offers a selection of three active trading accounts together with advanced trading tools. A demo account can be established at FXTM by utilizing any trading account available.
Best Forex Rebates Broker – FXPro
Overall, FxPro is the Best Forex Rebates Broker in Malaysia. FxPro, a broker operating in the United Kingdom, has a substantial enrolment of over 1.8 million traders that utilize their services as an Electronic Communication Network (ECN) and Straight Through Processing (STP) platform.
FxPro provides rebates to traders based on the type of account and trading instrument utilized. Hence, retail traders expect to obtain monthly payments of up to 30% in forex cashback rebates, which will be deposited straight into their trading accounts.
Best Lowest Spread Forex Broker – Tickmill
Overall, Tickmill is the best lowest spread forex trading platform in Malaysia. Tickmill, a highly cost-effective brokerage firm, offers a wide range of supported trading tactics. Tickmill offers fee-free trading and provides multiple options for funding your account.
Best Nasdaq 100 Forex Broker – HFM
Overall, HFM is the best Nasdaq 100 forex trading platform in Malaysia. HFM provides a diverse array of educational resources tailored for novice traders, alongside a notably low minimum deposit requirement for account opening. The maximum leverage offered by HFM is 1:1000.
Best Volatility 75 Forex Broker – IG
Overall, IG is the best Volatility 75/VIX 75 forex trading platform in Malaysia. Novice traders hailing from Malaysia have the opportunity to register for the IG Academy. Seasoned traders have access to a wide range of sophisticated trading tools.
Best NDD Forex Broker – FP Markets
Overall, FP Markets is the best NDD forex trading broker in Malaysia. FP Markets offers a wide range of choices for both depositing and withdrawing funds. FP Markets utilizes a widely recognized ECN price model that offers competitive raw and narrow spreads.
Best STP Forex Broker – Oanda
Overall, Oanda is the best STP forex trading broker in Malaysia. The utilization of Oanda’s comprehensive trading tools does not require a minimum deposit. Oanda offers a range of robust and versatile trading tools.
Best Sign-up Bonus Broker – RoboForex
Overall, RoboForex is the best sign-up bonus forex trading platform in Malaysia. RoboForex offers a diverse range of financial products for trading purposes, alongside an additional incentive of a 100% bonus for newly deposited funds.
An ECN trading guide for Malaysian traders
An ECN is a computerized system that directly publishes orders placed by market participants to third parties and individual traders. These orders are then executed automatically by matching purchase and sell orders at the best available price.
ECN trading is a highly efficient procedure that employs advanced technology. By connecting all traders, big and small, directly with liquidity providers, you eliminate the need for a ‘middleman’ in your transactions.
An ECN broker is often a No Dealing Desk (NDD) broker, which means that the clients’ orders are not routed through a Dealing Desk, allowing for direct execution between the parties.
ECN trading offers tighter spreads and more market price depth. This is because the ECN broker aggregates quotes from multiple participants to provide you with the tightest bid/ask spreads possible. This highly automated trading procedure yields real-time market quotations and lightning-fast execution!
Consider it a marketplace for brokers’ clients to trade with one another, allowing traders like you to acquire the greatest available deal at the time.
Benefits of ECN trading
Price feed transparency is another result that many people regard as a positive due to how the information is provided. All ECN brokers have access to the same feed and trade at the identical price supplied.
A small amount of pricing history is also readily available, allowing for a simpler study of certain market trends. This helps to limit price manipulation because current and historical information is easily accessible to all, making it more difficult to act unethically.
Furthermore, no trader has an inherent edge over the other because they all have equal access to the information.
Drawbacks of ECN trading
One of the most significant disadvantages of employing an ECN is the cost of doing so. Fees and commissions for using an ECN are often greater than for non-ECN systems. Per-trade commissions can be expensive and have an impact on a trader’s bottom line and profitability.
How to trade ECN successfully
Know how the ECN environment works
It is critical to understand the mechanics of the ECN environment before dealing with an ECN forex broker. ECN brokers, unlike market makers, do not profit from their clients’ losses. They instead charge a tiny commission for each trade that is completed.
This commission-based model eliminates brokers’ conflicts of interest with traders because they do not profit from their clients’ losses.
Choose the right ECN broker
Choosing the best ECN forex broker is essential for successful trading. Consider variables such as regulation, reputation, trading conditions, and customer service when selecting a broker.
Look for brokers who are authorized by respectable financial agencies, as this adds a layer of security to your assets.
In addition, consider the broker’s trading circumstances, such as spreads, execution speed, leverage, and available trading platforms. Spreads on ECN brokers are often competitive, but it is vital to compare them among brokers to ensure you are getting the best price.
Use a trading strategy
Having a sound trading strategy is critical for success in the forex market, regardless of the broker you choose. When trading with an ECN forex broker, however, it is critical to tailor your approach to the unique peculiarities of the ECN environment.
Because ECN brokers have direct access to the interbank market, deals are executed at the best possible market price. As a result, slippage and requotes are less common.
However, because spreads vary, it is critical to select a strategy that can tolerate wider spreads amid unpredictable market situations.
In Conclusion
Overall, when engaging with ECN Forex brokers Malaysian forex traders will benefit from excellent pricing and quick trade execution. Traders in Malaysia should always join up with licensed and recognized ECN Forex brokers.
Addendum/Disclosure: No matter how diligently we strive to maintain accuracy, the financial markets are volatile and could shift and change at any given time, even if the information supplied is correct at the time of going live.
Investor Warning: Foreign currency trading on margin is associated with an elevated risk and may not be appropriate for all investors. Before engaging in foreign currency or Contract for Difference (CFD) trading, you must evaluate your investing goals, expertise, appetite for risk, and willingness to be exposed to risk. You should not start investing capital that you cannot afford to lose, because you could incur a loss of part or your entire original investment.
Our Review Methodology: For each of our broker evaluations, we investigate, evaluate, analyze, and compare what we feel to be the most crucial criteria to consider when selecting a broker. This evaluation is comprised of positives, disadvantages, and an overall score based on our findings. We want to assist you in locating the ideal broker for your requirements. Our broker review should not be considered as financial advice and traders are urged to seek professional financial advice before making any investment or trading decisions.
Frequently Asked Questions
How do I trade through ECN?
To trade with an ECN, individuals must be subscribers or have an account with a broker who provides direct access to trading. Subscribers to an ECN can enter orders into the ECN using customized computer terminals or network protocols. After that, the ECN will match and execute orders.
How does an ECN broker make money?
Fees for electronic communication networks (ECNs) are charged on a per-trade basis, usually in fractions of a cent. For matching buyers and sellers who trade on their exchanges and networks, ECNs charge a service fee.
What are the advantages of ECN trading?
ECN trading offers tighter spreads and more market price depth. This is because the ECN broker aggregates quotes from multiple participants to provide you with the tightest bid/ask spreads possible. This highly automated trading technique yields real-time market quotes as well as quick execution.
Is an ECN broker better than a market maker?
Trading with an ECN broker is frequently less expensive than dealing with a typical market maker broker due to the combination of a low commission and a tight spread. ECN brokers typically provide low trading fees, transparent pricing, better spreads, round-the-clock trading, and some level of anonymity.
What is the ECN fee?
In general, ECN fees are levied when placing buy or sell orders that are judged to be “removing liquidity” or, in other words, when making orders that are likely to be executed immediately. When adding liquidity, only certain ECNs are subject to additional fees.
Are Deriv, FBS, XM, IC Markets, and, FXPro ECN Brokers?
Yes, IC Markets and FBS are ECN Brokers, whereas Deriv, XM, and FXPro are not.
