Over the years we have often noted that there is great confusion about the orders execution models used by forex brokers.
ECN… STP … DMA … Dealing or Non Dealing Desk… Market Maker…
Understanding all the differences is not that easy, especially for the beginner.
With our Top 10 list (also specifically for UK and Australia), we have tried to simplify things a little bit.
The ECN brokers (Electronic Communication Network), the STP (Straight Through Processing) and DMA (Direct Market Access) can be grouped in the great family of NDD brokers, No Dealing Desk, opposed to the Market Maker brokers, which have a dealing desk.
Many users search for true ECN STP brokers because they don’t want the broker to be the counterpart of their orders. In other words, they do not want to have conflicts of interest where the broker might “hope” for your losses, that for them would mean gains, since they are the counterpart.
From our experience, when people search for the best ECN STP brokers, in essence they are looking for a Non Dealing Desk broker, without really knowing what the difference between what ECN and STP are.
With an STP ECN broker you’re choosing a broker that will not be the counterpart of your orders, but that will simply work to find another counterpart to satisfy it. Basically, an ECN STP broker will not be interested in the success (or failure) of your operations, but they will only act as an intermediary in order to satisfy them.
Among the various execution models, the differences perceived, on the user side, actually are really low, especially for those who simply want to do forex trading with no particular operational needs.
However, the major point of any NDD broker is certainly the spread. This is usually lower (sometimes even zero) than the Market Maker one, and often has the ability to operate at extreme speed, even in scalping mode.
Best ECN STP Forex Brokers 2020
Here’s our list of the ECN STP forex brokers.
A relatively new broker, operating since 2010, it has quickly become one of Australia’s best forex brokers (with many awards confirming this), highly appreciated by Asian traders and investors. Pepperstone is one of the few forex brokers to offer, in addition to the access to an ECN, a DMA (Direct Market Access) execution. The trust shown in this broker is further bolstered by their solid regulation put in place by both the FCA and ASIC to protect traders.
Trading through Pepperstone, on top of the best execution, you will find 2 distinct account types available in the form of the Pepperstone Razor and Standard accounts. Both offer an accessible minimum deposit amount of $200 and a great starting spread that starts from 0 pips on the Razor account. This along with a great value active trader program help to reduce trading costs significantly.
Voted by World Finance as Best Broker for Asia in 2012, HotForex is one of the new brokers which are having great success, considering it has been operating since 2010. HotForex has always focused on providing the best possible service for small beginner traders, who operate with small volumes. With HotForex you have a variety of platforms and, above all, 6 types of accounts to choose from (Micro, Premium, Zero, Fixed, VIP, Auto).
A major point of attraction for traders when it comes to using HotForex as their ECN STP broker is the fact that they are comprehensively regulated by both the FCA and under MiFID regulation providing the best security to traders. New traders are also very well catered for in terms of the minimum deposit being just $50, while a copy trading service is also available with a minimum deposit of just $100 depending on place.
Originally a Russian broker, but later transferred to London, Admiral Markets is another ECN/STP forex broker, winner of several awards during their time, which began in 2001. Admiral Markets is renowned for its highly advanced analysis tools, with which traders can study every aspect of markets and prices to improve their trading performance. They are transparently regulated by both the FCA and CySEC with a huge catalogue of assets available to trade numbering over 4,000 and including bonds, ETFs, cryptocurrencies, and more.
The accessibly low minimum deposit required by Admiral Markets, being just $100, is something that has also attracted the attention of many newer traders in the sector. A low forex spread starting from 0 pips is also in place to make sure there is something to retain all traders who do choose to sign up.
4. FP Markets
FP Markets are another top Australian broker with a very stellar reputation when it comes to ECN STP trading. They have been in the industry since 2005 and have advanced a great deal during that time thanks to their true no dealing desk approach providing the best prices. They are also regulated by the very well-trusted ASIC and CySEC helping you feel very secure as a trader with this broker.
The satisfaction you will feel as a trader with FP Markets is no doubt well boosted by the very low spread you can take advantage of here. This remains very low at only 0pips and with the efficient ordering style and liquidity meaning you will never miss a beat in the market. Trading is available through the best of platforms in MT4 and MT5, and the minimum deposit here stands at excellent value of just $100.
One of the biggest forex brokers in the world, but predominantly known in the United States, and much less in Europe and the rest of the world. Forex.com is therefore one of the few to accept American customers and provide a state-of-the-art ECN platform, called GTX Direct. Along with being in prime position to welcome US forex trading, Forex.com is also well-regulated by both the FCA and ASIC, providing fixed spreads on commodities trading.
Traders can be attracted by the availability of fixed spreads, but more so by the very appealing, low minimum deposit of just $50 to get started in trading a huge choice of more than 90 forex currency pairs where the starting spread is a fantastic value 0.1 pips and there are more than 300 other markets available in indices, shares, and crypto. Trading choice to suit everyone.
One of the largest, if not the largest Swiss forex broker. Dukascopy Bank SA is, in effect, a bank more than a broker, so much so that it is regulated as such. Through the Dukascopy platforms you can access one of the largest ECN pools in the world, the Swiss Foreign Exchange Marketplace, where banks, hedge funds, institutional funds and large investors participate. This large scale operation you would think comes at a cost, but the minimum deposits here start from only $100, though they can reach $1,000 or even $100,000 depending on the area.
The cost of trading remains excellent too, with the spread starting from an extremely low 0.1 pips. The combination of an affordable deposit and very low spread have also made it a top forex scalping choice among traders that has further been boosted by the availability of a $100 welcome bonus depending on your location.
Roboforex is a large broker, originally from New Zealand, but divided into two main branches, one for Asia and Southeast Asia, one for Europe. The European part is in fact based in Cyprus. Roboforex is one of the forex brokers offering the chance to start with a cent account, ideal for those starting out, keeping the risks as low as possible. In this case, however, it’s a dealing desk execution. For the other accounts, instead, an excellent STP ECN system is provided. These are great options from a CySEC and IFSC regulated broker where you can open an ECN cTrader account from just $10.
Added to these positives is the fact that the spreads start from as low as possible at 0 pips and you can access a great bonus infrastructure as a non-European trader, or a comprehensive active trader program from inside the EU.
The forex Broker LCG, i.e. London Capital Group, is part of a holding company operating since 1996. With LCG there is no minimum deposit required to open a trading account, however, to access the ECN technology you need to keep at least $10,000 on your account. Once you do this you will have full access to the best that this ECN/STP broker has to offer including thorough regulatory oversight from both the FCA and CySEC.
Added to that and a point that works in attracting and retaining many of the more experienced traders is that LCG makes a whopping 7,000 assets in total available to trade. These include a wide selection of bonds, interest rates, ETFs, and vanilla options. The cost of trading in terms of spreads is also kept to a minimum with these starting out as low as 0 pips on forex markets.
ActivTrades began as a Swiss forex broker in 2001, before moving to London in 2005. ActivTrades is very active mainly in Italy, where they also received an award for best forex broker in 2011 and 2012. They are also very well-regulated by the FCA in the UK and provide traders with some of the best trading platforms in the business. This means that beyond their own trading platform, both MT4, and MT5 are available. Newer traders are also drawn by the fact there is no minimum deposit with ActivTrades.
Once you have an account, you will find a huge variety in available markets. This includes options, ETFs, and a host of CFDs as well as spread betting for UK traders. All of these positive reasons to trade here are wrapped up by the fact that spreads on forex start from a very competitive 0.5 pips.
10. ADS Securities
ADS Prime’s mother company is ADS securities, the biggest forex broker of the United Arab Emirates. The European branch instead works with the name ADS Prime and it is registered and operating in London. This means that the broker boasts extensive regulation from both the Central Bank of Dubai, and the FCA in the UK even though they are headquartered in Abu Dhabi.
ADS has won great popularity among traders looking for fast ECN STP execution thanks to its broad range of markets and the selection of other services they offer. This includes trading in Bitcoin and other investment support services. The value is evident with spreads starting at a low 0.1pips and accounts are very accessible with a $100 minimum deposit to trade through the well-known MT4 and the brokers own proprietary trading platform bringing a range of trading options for all.
Top 6 Best True ECN-STP UK Forex Brokers for 2020
When we think of a trading broker, usually there are two cities that affect the collective imagination. New York and London. But, if we talk about Forex market, then the ideal city is surely only one. London.
By digging further into the collective imagination, and considering the type of broker to use for forex trading, many traders specifically and exclusiverly choose only those brokers offering Ecn/Stp trading platforms. Even better if pure or true Ecn.
Here’s our detailed list of the best UK ECN-STP brokers (regulated or authorized by FCA) according to our research:
- Admiral Markets
- ADS Securities by ADS Securities London
- PhillipCapital UK
- LCG – London Capital Group
Top 7 Best True ECN-STP Forex Brokers Australia for 2020
Australian ECN forex brokers are some of the world’s most top-rated and should definitely be considered when making a choice.
But not all forex brokers that claim to be ECN actually are and so true ECN forex brokers in Australia and the rest of the world are hard to find. That’s why we made this list of some of the most reputable ECN forex brokers in Australia, to make sure traders find the best services available to them.
Here’s our detailed list of the best Australian ECN-STP brokers (regulated or authorized by ASIC) according to our research:
Want to know more about the best ECN forex brokers?
This is the main list of the best ECN forex brokers in circulation today. But we didn’t stop here.
Are you looking for something more particular?
Do you need an ECN Broker with some specific features?
Here are all our rankings: