Electronic communications network (ECN) broker


    What is an ECN broker?

    An ECN broker usually specialises in forex and uses an electronic communications network to put its clients in touch directly with other currency traders.

    ECN brokers typically can offer their clients competitive spreads as they are able to engage in sharing information with other brokers to determine the right price. They never trade against a client, only match trades for them with other market participants.

    Because the spread is narrow, ECN brokers do not work for a commission but instead charge a fixed fee.

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