Trading with an ECN broker has a number of benefits including no trading desk, faster execution speeds and in most cases, lower fees and commissions. In January an ECN forex broker comparison was made comparing the best forex brokers with this unique setup.

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The sheer distance between Australia liquidity hubs can be a disadvantage for Australian traders. Pepperstone offset this through a direct optic fibre connection from Sydney to New York.

ECN Forex Brokers Comparison - 10 Best ECN Brokers | DailyForex

To overcome this, Pepperstone partnered with Equinix that have servers near Wall Street. Equinix houses over 60 exchanges and over sell and buy side firms. Not only do currency exchange firms use these servers but also banks which Pepperstone can directly exchange data with.

This is the worlds most popular ECN forex platform due to the easy to use interface. This interface also offers enhanced charting to track detailed market fluctuations. MetaTrader also offers an expert order management tool providing control to traders.

The platform uses MQL language for developers and Expert Advisors for automated strategies. Features include detachable charts, pre-set charting options and an easy order system.

By using cTrader Pepperstone can access liquidity from Goldman Sacks and other institutions.

By accessing tier on liquidity providers low spread can be achieve on most currency pairings. There is also the ability to conduct automated trader and a back-testing facility for strategies.

An example is a movement in currency of 0.

Pepperstone though are different from all the other ECN forex brokers who offer high leverage because they have negative balance protection.

This is an automated margin stop system that works to prevent Pepperstone clients from falling into negative balance. This effectively means trading with Pepperstone reduced traders risks with many in the industry hearing stories of beginner traders losing far more than their deposit in periods of extreme fluctuations.

Below shows Pepperstone spreads as of January As the table highlights, many major currency pairings start at 0.

ECN brokers list | ECN/STP Forex brokers

The standard account on the other hand has no commission but spreads are higher. Accounts can be funded through a variety of payment methods including credit cards, bank transfers and bPay. This means they must meet strict guidelines such as training standards and the requirements for customers deposits to be segregated in a separate account. This provides peace of mind for some forex traders as they may be worried that the broker may trade against them which has occurred in the past by poorly regulated and run brokers.

These brokers can make both ask and bid prices which they can take from their customers. An Electronic Communications Network or ECN essentially helps speed up the settlement of trades between brokerage houses and individual traders.

With an ECN, no 3rd party or middle man exists. This helps to reduce settlement costs as there is one less party involved in a trade that needs to get paid.

ECN Forex Brokers | List of ECN/STP Forex Brokers

An ECN also helps by allowing traders in a range of geographical locations right around the world to access markets no matter where they are. It also allows them to trade quickly and seamlessly.

Compare forex brokers was created by Australians who have worked with the forex industry over several years. The tables were made based on information from providers websites and review websites with no automation used to compile information on the tables or reviews. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.