What You Should Know About ECN Trading - Potential Forex Trades
Hello, welcome to James Samples’ blog. You now, I prefer to trade in Electronic Currency Network (ECN). It is also called as the Institutional Grade Spread system. This is a technology which allows me to put my orders directly in the interbank market. My broker has a tight spread and a fixed commission for my ECN account. My broker offers the exact same rate it receives with a little mark up for its profit.
ECN trading is best for traders who want to take advantage of the daily economic news. My broker does not allow any re-quote in its ECN accounts and ensure proper anonymity for its clients. However, ECN trading is not for all and requires a lot of experience which comes after months of live trading in forex market.
ECN collects prices from various market participants including market makers, banks and other connected traders; and then display the quotes from these prices on the trading platform. There is no fixed spread in ECN. Rather, the spread varies according to the activity of the pair. Most active pairs like EUR/USD, USD/CHF, GBP/USD and USD/JPY can provide no spread at all at the peak hours.
ECN service providers make their cut by charging a fixed commission for the transactions. Reliable ECN brokers do not intervene in the making or setting of the price. They simply bypass the orders to banks or other customer on the network. The volatile nature of ECN also makes it a perfect hunting place for scalpers. Experienced scalpers can make some quick bucks during the active hours.
Hello, welcome to James Samples’ blog. You now, I prefer to trade in Electronic Currency Network (ECN). It is also called as the Institutional Grade Spread system. This is a technology which allows me to put my orders directly in the interbank market. My broker has a tight spread and a fixed commission for my ECN account. My broker offers the exact same rate it receives with a little mark up for its profit.
ECN trading is best for traders who want to take advantage of the daily economic news. My broker does not allow any re-quote in its ECN accounts and ensure proper anonymity for its clients. However, ECN trading is not for all and requires a lot of experience which comes after months of live trading in forex market.
ECN collects prices from various market participants including market makers, banks and other connected traders; and then display the quotes from these prices on the trading platform. There is no fixed spread in ECN. Rather, the spread varies according to the activity of the pair. Most active pairs like EUR/USD, USD/CHF, GBP/USD and USD/JPY can provide no spread at all at the peak hours.
ECN service providers make their cut by charging a fixed commission for the transactions. Reliable ECN brokers do not intervene in the making or setting of the price. They simply bypass the orders to banks or other customer on the network. The volatile nature of ECN also makes it a perfect hunting place for scalpers. Experienced scalpers can make some quick bucks during the active hours.