Are you looking for the best ECN Forex Brokers for Scalping to try a super-fast way of trading with a cutting edge platform and above all very tight spreads?
You are in the right place to find the best solutions.
ECN or Electronic Communication Network is something of a mystery for many traders. Why on earth should I care what it is? Is it really good for me as a trader?
The definition of it is quite complicated. And, uninterested for the retail trader.
However, the ECN technology forever changed the landscape in the online retail trading, bringing unparalleled conditions to an ever-changing market.
Perhaps the best way to explain it is to highlight the progress it brought to the industry. As a retail trader, imagine that only ten years ago the spread on the EURUSD pair (the difference between the bid and ask price) was wider than three full pips.
Nowadays, thanks to the ECN technology, the spreads on the EURUSD pair can go as low as 0.1 and on average sit around 0.5. Moreover, before the ECN technology appeared, all retail trading accounts displayed the quotes with only four digits. For instance, the EURUSD had a quote of 1.1377 ten years ago, and under an ECN account, it has 1.13775. One more digit makes a heck of a difference to the execution and, ultimately, the performance in a trading account.
ECN eliminated one of the worse nightmares in the retail trading industry: the re-quotation.
Back in time, when the market moved too fast due to critical economic data, trading at the market was almost impossible. The trader will get a re-quote stating that the market changed, and the order wasn’t executed. By the time that the entry was allowed, the market moved so far than in most cases it didn’t make sense anymore to take the trade.
The ECN changed the landscape with a simple promise: all trades are executed with the condition that there is a market. Considering the multitudes of LP’s (liquidity providers) in the industry, there’s always a market, so there’s always execution. In some cases, the slippage is so small that it becomes irrelevant, regardless of the market conditions.
This short introduction sums up what ECN is and what it brought to the retail trading industry, without using too much of a “scientific” description of it.
Naturally, the new technology started a race between brokerage houses for the best ECN broker. Because scalping (trading multiple times a day for short to very short-term profits) is the preferred trading style among retail traders, everyone seems to look for the best ECN broker for scalping.
And this is where we step in.
(This post is part of the ECN forex brokers series)View Contents
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Top 10 of the Best ECN Forex Brokers for Scalping 2020
Here’s our ranking.