What is ECN Forex Trading?
ECN, which stands for Electronic Communication Network, really
is the way of the future for the Foreign Exchange Markets. ECN can best be
described as a bridge linking smaller market participants with tier-1 liquidity
providers through a FOREX ECN Broker.
This linkage is done using sophisticated technology setup named FIX Protocol
(Financial Information Exchange Protocol). At one end, the broker obtains
liquidity from tier-1 liquidity providers (Major Banks) and makes it available
for trading to its clients. On the other side, the broker delivers clients'
orders to Liquidity Providers for execution.
An ECN broker benefits from commission fees per transaction. The higher trading
volume the broker's clients generate, the higher the broker's profitability.
FXCC ECN Advantages:
All ECN trading activity is totally anonymous. Anonymity enables traders to deal on
neutral prices, which reflect the real market conditions only and are not biased
against the client's direction based on forex trading strategies, tactics or current
Instantaneous Trade Execution
Clients trade forex instantly on live streaming, best executable prices with immediate
confirmations. FXCC does not provide a "last look" to price makers, so FXCC
trades are final and confirmed as soon as they are dealt. There is no dealing
desk to intervene, so there are no re-quotes.
The FXCC ECN model allows clients to trade on the global liquidity of
world-class banks and qualified financial institutions.
Automated forex Trading/Market Data
Through the use of our API, clients can connect their trading models and risk
management systems to our market data feed and matching engine. FXCC's live,
neutral, executable market data includes the Best Bid and Best Ask prices at the time.
These attributes of our data make it robust in back testing trading models and
powering them for live trading.
Unlike a dealer, however, FXCC does not control the bid/offer spread and
therefore can not provide the same bid/offer spread at all times. FXCC offers
On an ECN, clients have direct access to market prices. Market prices
fluctuate reflecting supply and demand, volatility and other conditions. The
FXCC ECN enables clients to trade on tight bid/offer spreads, which are as low
as 1 pip on all majors in normal market conditions.