Electronic communications network (ECN) broker

What is an ECN brokerWhat is an online broker? In online trading, a broker is a ... More?

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 marketWhat are value stocks? A value company is a company that app... More participants.

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

Also see:

• Dealing desk (DD) broker
• Non-dealing desk (NDD) broker
• Straight through processing (STP) broker
• Market maker
• Wikipedia on ECNs