Friday, 22 June 2012

ECN Forex Broker Reviews

Forex ECN or Forex electronic communications network is the network system of Forex brokers and Forex traders. Forex ECN started due to the advent of home computers and the worldwide spread of internet access. This system is designed for online streaming of market activity and Forex trade results. This system is based on the online connection between Forex brokers and Forex traders from all venues; from the large banking institutions to major Forex traders to individual Forex traders.

The ECN system eliminates the need for a third party or middleman; because there is a direct connection with prospective traders. This in turn allows for immediate execution of online trades because the order is viewed immediately by the seller. The ECN system matches trade orders to the active trading market.

Orders on the ECN system are processed in real time. With an ECN broker you will get better spreads on transactions and as a trader this will definitely be to your benefit. In addition to the other benefits of using a Forex ECN broker you have the luxury of complete anonymity for the execution of your trades. Since the market is always in flux the availability of viable trades is always in existence even during a volatile time in a particular trading market.

Also the ECN market allows for versatility in trading by handling orders of any size. ECN brokers will not bid against you. The ECN brokers also use trading platform software but it will not be as user friendly as other systems because it is primarily designed for use by the broker. Another perk of an ECN broker is the availability of a demo Forex trading account this allows you some time to become acclimated with the ECN system and broker before jumping into the market.

With the ECN system, a Forex ECN broker can act in your place in many capacities not only for the buying and selling of foreign currencies but a broker can also seek out multiple buyers/sellers and make bids for you to all of them. Also in that same respect the fulfillment of purchase obligations can come from multiple liquidity sources. An ECN broker cannot control the market pricing or availability.

In addition an ECN broker will charge a fee or commission for their online services and it would be well worth the time to have a broker acting for you. An ECN broker helps to get you better prospects on trades. With any Forex trade or ECN trade you will need to exercise caution because the Forex market is an unstable market and any trade that is executed is subject to become a loss if poorly strategized or executed.

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