What is Brokers ECN
ECN is the acronym for Electronic Communications Network. ECN brokers not only intercompany the operations of their clients with several banks but also create a network where all the operators of the broker can trade with each other.
We would say that this would be the most real and transparent way to trade in the foreign exchange market. The platforms of ECN brokers have depth levels in their buying and selling prices; The spreads are usually very small and variable, but in any case always much smaller than the spreads of the brokers market makers and STP brokers.
The broker benefits from your profits. In the ECN model, you operate with other participants in the market, not against your broker. To execute your order, ECN Aggregator will find an opposite order that matches your own (same price and available volume) of another participant in the market.
The broker will charge a minimum commission to transfer your order to the ECN and find a matching order. With this trading model, the broker does not compete against you and does not make any gains when you lose. On the contrary, brokers receive higher commissions when you increase your trading volumes.