Forex brokers can be classified based on their mode of execution. The types of brokers are market makers, straight-through-processing (STP), and ECN brokers. The last two belong to the no-dealing-desk (NDD) brokers. In this post, I will be examining the best ECN forex brokers.
ECN brokers are brokers that employ ECN technology to connect their clients to the interbank market. ECN stands for Electronic Communications Network and it is how the banks communicate and trade forex between each other. Brokers that use ECN purely do not have dealing desks and offer their clients competitive spreads. They make their income from the commissions charged when positions are taken. Other types of brokers such as market makers may offer special account types with ECN execution.
For the purpose of this post, the top 10 ECN (no dealing desk) brokers will be examined.
Best ECN Forex Brokers
- Saxo Bank
- Octa FX
In conclusion, before choosing a broker to trade with, always research the broker and read reviews. This will give insight into the operation of the forex broker before depositing your funds with them. This will help in knowing if you are “compatible” with such a broker or not.
You can read in-depth reviews of these forex brokers and others over at our forex broker reviews page. You can also read about other types of brokers here. If you are unsure which broker to go with then you can go through our recommendations.
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