Best True Ecn/Stp UK Forex Brokers list
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.
(This post is part of the best forex broker 2017 series)
But first, let’s talk about the “true ECN” thing and what it means.
True ECN brokers UK
I can imagine that, if you are looking for a “true ECN broker“, your goal is to avoid at all costs a market maker broker.
The problem is that, at least in the UK, there are no pure Ecn brokers, but they are all at least ECN + STP.
If Ecn means Electronic Communication Network, STP means Straight Through Processing.
To oversimplify, a Broker with STP structure is a no-dealing desk broker that, when it receives an order from the customer, has two choices:
- turn the order to its liquidity providers;
- process it internally, ie becoming the counterparty.
Option two is pretty much equal to what a Market Maker does, but there is a substantial difference. In either case, ie whether the order is turned over to the liquidity providers or handled internally, the STP brokers (as the name implies) does everything automatically, with no intervention and no interference, as a market maker could do instead in some cases.
So, why an Ecn always have this combined structure with Stp?
The reason is simple.
In a pure Ecn your order can be executed if, and only if, within the Network there is a counterparty that can execute your order by taking a contrary position. However, if there is none (even if almost impossible), your order cannot be executed, or at least cannot be executed at the price you wanted, or the execution may not always be instantaneous.
But adding the STP modality, the broker can assure you to always execute your orders at your desired prices, with extreme speed, either because there is a direct counterpart in the Ecn, or because he automatically act as counterparty, without any intervention (STP).
Basically, everything is designed to give customers the best experience, ensuring they always have the option to open or close their trade very quickly.
List of UK ECN/STP Forex Brokers
Here is the list of the top 6 brokers headquartered in the UK.
One of the best UK brokers since its foundation, FxPro offers a NDD account through the cTrader platform, with spreads from 0 pips and a comprehensive view of the market depth.
Try the NDD account with FxPro
Try the ECN account with ActiveTrades
Try the ECN account with Admiral Markets
4. ADS Prime by ADS Securities London
Try the ECN account with ADS Prime
Try the ECN account with LCG
Try the ECN account with Phillip Capital