10 Best ECN Brokers for 2024
ECN brokers’ ensuing direct connectivity to the interbank market enables traders to trade with reliable pricing and speed of execution that is unmatched. Another advantage is reduced trading costs, with most ECN brokers charging a flat commission on top of raw spreads.
While the FX industry is developing apace, choosing a good ECN broker may become a crucial factor for traders seeking to enjoy the best trading conditions and pricing equitable to both parties.
In this post, we will study the leading ECN brokers in the market and will give an account for the best one that you should choose. Although they are all very different, the ECN brokers listed below have been chosen for their reputation, openness, and low trading expenses. You’re likely to find what you’re searching for here: a commission-free account, high leverage, top-notch education, or a trading platform from an ECN broker.
- Minimum deposit: $10
- Spread: From 0.2 pips & commission-free (Standard account)
- Leverage: 1:30 up to 1:1000
- Currency options: More than 35 pair
Pros and Cons
Pros
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0.0 pip spreads on the world’s top 30 traded instruments
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Ultra-low commissions on $0.20 per traded lot, per slide
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Offers a VPS for forex EAs
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Unlimited leverage is available to eligible traders.
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Fast execution speed and minimal latency
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24/7 customer support in multiple languages
Pros
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It does not accept clients from the EU (European Union).
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No bonuses are offered.
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Limited deposit and withdrawal options compared to other brokers
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An inactivity fee is charged after 180 days of no trading activity.
Fees
| Minimum Deposit | $10 |
| Commission | $0.20 per traded lot, per slide |
| EUR/USD Spread | 0.0 pips on the top 30 instruments, including major pairs like EUR/USD |
| Inactivity Fee | Inactivity fee charged after 180 days of no trading activity |
| Deposit Fee | No |
| Withdrawal Fee | No |
Review
Why We Picked It
Since 2008, Exness has been in business. The finest broker for both passive and aggressive investing is Exness. It is acclaimed for its advanced technology, a vast range of tradable assets, transparent operations, competitive spreads, low commissions, and fast execution speeds.
Exness offers two accounts with ECN pricing:
- The Raw Spread Account: The Raw Spread Account behaves like a traditional ECN trading account; it features unlimited leverage and an unlimited number of open orders. Fees are low, with spreads down to 0 pips on the EUR/USD and an industry-standard commission of $7.
- The Zero Account: The Zero Account is more unusual. The fixed 0 pip spread on the top 30 most traded instruments is the major attraction here. Commissions are also very low, at 0.1 pips per side per lot. Again, leverage is unlimited, as is the number of open orders.
Apart from the above, brokers also offer free demo accounts for novice traders.
Exness drawbacks
Exness isn’t exactly an ECN broker. Even though their Raw Spread Account and Zero Account offer ECN-like pricing and market execution, they operate more like STP accounts. Instead of getting pricing from a variety of liquidity providers, they have their own system. These accounts are labeled as Pro accounts for a reason: they require a minimum deposit of $500, and offering unlimited leverage can be risky for traders who aren’t careful with managing their risks. Another drawback you should consider is that zero accounts can only be used on MT5. Apart from this, the broker’s website offers almost no educational materials.
Who should use Exness?
It is an excellent option for both novice and seasoned traders due to its user-friendly platform with zero pip spreads, unlimited leverage, and a wealth of educational materials.
Key features
| Instruments to trade | Currency pairs, Metals, Energies, Stocks, Indices |
| Base currency | EUR, USD, GBP, CAD, AUD, and CHF |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | Exness trading app, Exness Web, MT4, MT5 |
| Demo account | Yes |
| Regulation | FSCA, CYSEC, FCA, FSA |
| Customer services | 24/7 live chat, phone, email |
| Bonus | None |
| Banned Countries | USA, American Samoa, Baker Island, Guam, Howland Island, Kingman Reef, Marshall Islands, Northern Mariana Islands, Puerto Rico, Midway Islands, Wake Island, Palmyra Atoll, Jarvis Island, Johnston Atoll, Navassa Island, Martinique, U.S. Virgin Islands, United States Minor Outlying Islands, and Vatican City |
- Minimum deposit: $10
- Spread: floating from 0 pips and commission-free (ECN account)
- Leverage: 1:500
- Currency options: 36 pairs
Pros and Cons
Pros
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A wide range of assets are available.
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Extremely low trading fees
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Spreads from 0 pips
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A good choice of trading platforms
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Provides 24/7 customer support in multiple languages.
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Very high security of funds
Pros
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Slow execution speeds
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Low customer trust rating
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No deposit bonus is available.
Fees
| Minimum Deposit | $10 |
| Commission | $20 for every $1 million traded |
| EUR/USD Spread | From 0.0 pips |
| Deposit Fee | 0-0.5% |
| Withdrawal Fee | 0-4% |
| Inactivity fee | None |
Review
Why We Picked It
Founded in 2009, it is a prominent ECN broker primarily known for its extensive range of assets, robust platforms, and customer-centric approach. It has been recognized as a reliable partner by the most respected financial market experts.
RoboForex broker ECN accounts come with only a $10 minimum deposit requirement. It is also competitive in the fee department. You’ll pay just $20 for every $1 million traded. This works out at $2 per round lot or $1 per slide. It also offers spreads of 0.0 pips, but this only covers 36 forex pairs. RoboForex offers leverage of up to $1,500 to eligible clients. It also offers a free demo account, which is good for inexperienced and novice traders. Additionally, the broker provides traders with the opportunity to replicate the methods of profitable investors and generate passive income through the CopyFx investing program.
RoboForex broker drawback
The biggest drawback of the RoboForex broker is that it charges withdrawal fees depending on the withdrawal method and account type, which can affect the overall profitability of traders. Additionally, traders with inactive accounts may also have to pay inactivity fees, which can be a concern for those who do not trade often.
Who should use RoboForex broker?
RoboForex broker is also ideal for novice traders; its ECN accounts have a minimum deposit requirement of $10, and they also offer a free Domo account, in order for you to try the broker out before investing any money.
Key features
| Instruments to trade | 100+ stocks, indices, futures, ETF, metals, energy commodities, commodities, currencies |
| Base Currencies | USD, EUR |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MT4, MT5, MobileTrader, StocksTrader, WebTrader |
| Demo account | Yes |
| Regulation | CySEC, NBRB, IFSC |
| Customer services | 24/7 live chat, phone, email |
| Bonus | Welcome bonus, up to 10% on account balance, cashback rebates |
| Banned Countries | United States, Japan, Canada, Australia, Bonaire, Curaçao, the Democratic Republic of Timor-Leste, Liberia, Saipan, Russia, Sint Eustatius, Turkey, Tahiti, Guinea-Bissau, Micronesia, Northern Mariana Islands, Svalbard & Jan Mayen, and, South Sudan |
- Minimum deposit: $100
- Spread: From 1.0 pips & commission-free (Standard account)
- Leverage: 1:500
- Currency options: 70 pair
Pros and Cons
Pros
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Offer a wide variety of trading instruments.
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Raw account commissions cost just $3 per traded lot, per slide.
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More than 70 forex pairs are supported.
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Offers robust 24/7 customer support accessible via live chat, phone, and email.
Pros
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Does not accept clients from the US.
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Some payment methods attract withdrawal fees.
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Retail traders covered by ASIC and CySEC are limited to leverage of 1:30.
Fees
| Minimum Deposit | $100 |
| Commission | Raw account ($3 per traded lot, per slide), Standard account ($0) |
| Average Trading Cost EUR/USD | Raw account (0.0 pips), Standard account (1 pip) |
| Average Trading Cost GBP/USD | 1.4 pips |
| Overnight Fee | $0 |
| Inactivity Fee | $0 |
| Deposit Fee | $0 |
| Withdrawal Fee | Yes, Depends on payment method |
Review
Why We Picked It
Founded in 2005, FP Markets is a leading global forex broker, mainly known for its ultra-fast execution, deep liquidity, and competitive pricing. This enables them to execute trades with minimal slippage and tight spreads. It offers user-friendly interfaces and comprehensive trading tools.
Since its establishment, FP Markets has offered two accounts, both offering ECN pricing. The first option is the raw account. This comes with an average spread for EUR/USD at 0.1 pips, GBP/USD at 0.2 pips, and USD/JPY at 0.1 pips. Commissions are reasonable at just $3 per traded lot, per slide. The second option is the standard account. Although this offers commission-free trading, spreads start at 1 pip. Both accounts have a minimum trade requirement of 0.01 lots. In our analysis, FP Markets is one of the best ECN brokers regarding execution speed; trades average just 40 milliseconds.
FP Markets drawback
FP Markets is not a true ECN broker; it streams its pricing directly from its liquidity providers. Although it uses a no-dealing-desk intervention model, it does have a trading desk for risk management. It also doesn’t have a native trading suite. Instead, you’ll need to choose from MT4, MT5, or cTrader.
Who should use FP markets?
FP Markets is best for scalers looking for raw spreads and fast execution on the MT4, MT5, and cTrader trading platforms.
Key features
| Instruments to trade | 72 FX pairs, 18 indices, 17 commodities, 12 cryptos, 680+ shares. |
| Base Currencies | AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, USD, SGD |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MT4, MT5, IRESS, cTrader, TradingView, Mobile App |
| Demo account | Yes (free for 30 days) |
| Regulation | ASIC, FSCA, CYSEC |
| Customer services | 24/7 live chat, phone, email |
| Bonus | None |
| Banned Countries | United States, Japan, New Zealand |
- Minimum deposit: $5
- Spread: From 0.1 pip & commission-free (Standard account)
- Leverage: 1:1000 (IFSC), 1:30 (ASIC), 1:30 (DFSA), 1:30 (CySEC )
- Currency options: 57 pairs
Pros and Cons
Pros
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Non-expiring demo account
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There are platforms for the XM Mobile App and MetaTrader accessible.
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Negative Balance Protection
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Wide variety of assets
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Provides multilingual customer service that is available around the clock.
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A wide range of educational resources are available for traders.
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Offer a bonus of up to $2,000
Pros
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The ECN model has tight spreads, but for some traders, especially novices, the trading expenses are relatively high.
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Fewer possibilities for deposits and withdrawals than with other brokers
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After 1 year without any trading activity, there is an inactivity fee.
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Funding with PayPal is unavailable
Fees
| Minimum Deposit | $5 |
| Commission | $0 (Standard account), $3.50 (XM Zero accounts) |
| EUR/USD Spread | From 0.1 pips |
| GBP/USD Spread | From 0.2 pips |
| Inactivity Fee | Inactivity fee of $15 charged after 1 year of no trading activity, and this is followed by a $5 monthly fee if the account remains inactive. |
| Account Fee | None |
| Deposit Fee | No, but additional charges might apply depending on the payment method you use.* |
| Withdrawal Fee | No, but additional charges might apply depending on the payment method you use.* |
* For example, XM charges fees of $15 for deposits and withdrawals via Bank Wire below $200.
Review
Why We Picked It
XM Broker was founded in 2009. This esteemed ECN broker is well-known throughout the world for its competitive spreads, low commissions, fast execution speeds, customer support, intuitive trading platforms, and wealth of training materials.
It offers a wide range of trading instruments, including forex, metals, energies, indices, and cryptocurrencies. Access to cutting-edge trading platforms like MetaTrader 4, MetaTrader 5, and its in-house mobile trading app is offered by the broker. XM also provides negative balance protection and keeps trader funds in segregated bank accounts.
XM drawbacks
Although XM offers a limited spread under the ECM model, trading costs are relatively high for some traders, especially beginners. Another issue is that XM offers leverage up to 1:1000 for some traders, which can increase trading risk, especially for beginners. They also charged inactivity fees.
Who should use XM?
XM Broker is best for all types of traders. It is a well-liked option for traders due to its user-friendly site and variety of account settings. Beginner traders will also love its extensive educational resources and customer support.
Key features
| Instruments to trade | 1000+, forex, CFDs on indices, commodities, stocks, metals, and energies |
| Base currency | EUR, USD, GBP, AUD, ZAR, and SGD |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MT4, MT5, XM WebTrader |
| Demo account | Yes |
| Regulation | ASIC, CySEC, FSC, DFSA |
| Customer services | 24/7 live chat, phone, email |
| Bones | Up to $2,000 |
| Banned Countries | Canada, Iran, United States, Israel |
- Minimum deposit: $200
- Spread: 0.0 pip forex spreads with commissions of $3.50 per traded lot, per slide
- Leverage: 1:500 (FSA), 1:30 (ASIC and CySEC)
- Currency options: More than 60 pairs
Pros and Cons
Pros
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A wide range of assets are available.
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Fast execution speeds of just 1 millisecond
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Popular with scalpers and high-frequency trading strategies
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One of the best MT5 brokers
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Provides customer support 24/7 in multiple languages.
Pros
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High minimum deposit
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Does not accept clients from the United States.
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Only supports third-party trading platforms
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No bonus offer
Fees
| Minimum Deposit | $200 |
| Commission | $3.50 per traded lot, per slide |
| EUR/USD Spread | From 0.0 pips |
| GBP/USD Spread | From 0.0 pips |
| Inactivity Fee | No |
| Deposit Fee | No |
| Withdrawal Fee | No |
Review
Why We Picked It
Founded in 2007, IC Markets is the largest forex broker in the world based on trading volume. It provides one of the most welcoming environments for beginner traders looking for an ECN broker.
With one of the lowest spreads (0.1 pip) and lowest fees (starting at $3 per lot), the broker can offer tight spreads because of its state-of-the-art technology, direct access to liquidity, large trading volume, and lack of a dealing desk. Not only does IC Markets have inexpensive trading fees, but it also provides webinars led by experts and an archive of structured educational materials.
With an average trade latency of just 1 millisecond, IC Markets is the perfect broker for high-frequency trading and scalping. It also offers a free demo account. This takes less than 30 seconds to open, and there’s no requirement to make a deposit.
IC Markets drawback
IC Markets has a minimum deposit of $200, which is quite high for beginners. However, educational content is good, but traders will find better market analysis elsewhere.
Who should use IC Markets?
This broker offers ultra-fast execution speeds, low spreads, deep liquidity, and zero requotes, making it suitable for a variety of strategies, including scalping and algorithmic trading.
Additionally, novice traders looking for an ECN broker with affordable fees, excellent training resources, and 24/7 customer service can also choose it.
Key features
| Instruments to trade | 2250+, CFDs on forex, commodities, indices, bonds, digital currencies, stocks, and futures |
| Base currency | USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, CAD |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MT4, MT5, cTrader, TradingView |
| Demo account | Yes (free for 30 days) |
| Regulation | CySEC, ASIC, FSA-Seychelles, SCB |
| Customer services | 24/7 live chat, phone, email |
| Bonus | None |
| Banned Countries | Abkhazia, Afghanistan, American Samoa, Angola, Bolivia, British Columbia (Canada), Burma, Cambodia, Central African Republic, Cote d’Ivoire, Chatham Island (New Zealand), Cuba, Cuba (Guantanamo Bay), Democratic Republic of Congo, Congo – Brazzaville, Congo – Kinshasa, Cook Islands, Diego Garcia, Gambia, Guam, Guinea, Guinea Bissau, Iran, Iraq, Israel, North Korea, Kyrgyzstan, Lebanon, Libya, Mali, Martinique, Mayotte, Nevis, New Caledonia, New Zealand, Niue Northern Mariana Islands, Ontario (Canada), Puerto Rico, Reunion, Saint Barthelemy Saint Martin, Saint Pierre and Miquelon, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syrian Arab Republic, Tanzania, Tokelau, U.S. Virgin Islands, United States of America, Wake Island, Wallis and Futuna, Yemen, Zanzibar, and Zimbabwe. |
- Minimum Deposit: $200
- Spread: Average 1.1 pips and commission-free (Standard account)
- Leverage: Maximum 1:200 (Retail clients), 1:500 (Professional)
- Currency options: 62 pair
Pros and Cons
Pros
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ECN-like pricing with spreads starting from 1.1 pips
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Competitive commissions of $3.50 per traded lot, per slide
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Leverage of up to 1:200 for clients falling under SCB regulation
Pros
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A high minimum deposit requirement of $200
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Does not accept clients from the US.
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Not a ‘true’ ECN broker by definition
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Does not offer 24/7 customer service.
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Because of legal limitations, leverage is much lower for retail clients in the EU. High leverage up to 1:500 is restricted to clients who are professionals.
Fees
| Minimum Deposit | $200 |
| Commission | $0 with standard account, $3.50 per traded lot, per slide with Rozor account (currency equivalent on non-USD quoted pairs) |
| EUR/USD Spread | From 0.0 pips |
| Account Fee | No |
| Inactivity Fee | $0 |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
Review
Why We Picked It
Established in Melbourne, Australia, in 2010, the company was founded by experienced traders dissatisfied with the standard of services most brokers offer. With fully working trading systems and fiercely competitive services, it has created a brokerage environment. It is currently regarded as one of the most reliable brokers for CFD trading in individual shares, commodities, indexes, FX pairings, and cryptocurrencies.
Pepperstone’s framework functions like an ECN broker, even though it isn’t a “true” ECN broker. For instance, it doesn’t maintain a proprietary trading book, and no middlemen are offering to price. In contrast, real-time quotes are provided over the Electronic Communications Network by tier-one liquidity providers. In other words, traders on Pepperstone pay the same prices as banks and other organizations.
Pepperstone drawback
Pepperstone has a minimum deposit of $200, which is quite high for novice traders. It doesn’t have a native trading suite, which could be considered a drawback. Moreover, all financial instruments are backed by contracts-for-differences (CFDs), so US clients cannot open an account.
Who should use pepperstone?
Pepperstone is the ideal choice for those who require advanced chart reading and drawing tools, as well as the ability to deploy automated robots.
Key features
| Instruments to trade | 1000+, forex, cryptocurrencies, shares, ETFs, indices, commodities |
| Base currency | AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD and HKD |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | cTrader, MT4, MT5, and TradingView |
| Demo account | Yes |
| Regulation | ASIC, CySEC, FCA, DFSA, SCB |
| Customer services | 24/5 live chat, phone, email |
| Bonus | NA |
| Banned Countries | Afghanistan, Antarctica, Armenia, Azerbaijan, Belarus, Belize, Bhutan, Bosnia and Herzegovina, Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic Republic of the Congo, Côte d’Ivoire, Eritrea, French Guiana, French Polynesia, Guadeloupe, Guam, Guinea, Guinea-Bissau, Guyana, Haiti, Holy See, Iran, Iraq, Kazakhstan, Lebanon, Liberia, Libya, Mali, Martinique, Mayotte, Mozambique, Myanmar, Nicaragua, North Korea, Palestine, Reunion, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Somalia, South Georgia and the South Sandwich Islands, South Korea, South Sudan, Sudan (North), Suriname, Syrian Arab Republic, Tajikistan, Tunisia, Turkmenistan, Turks and Caicos Islands, Uruguay, Vanuatu, Venezuela, Virgin Islands, Western Sahara, Yemen and Zimbabwe. |
- Minimum deposit: $0
- Spread: From 0.0 pips
- Leverage: 1:500
- Currency options: 90 pair
Pros and Cons
Pros
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Low trading and non-trading fees
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The best customer service
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Fast and easy account opening
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No investor protection
Pros
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Limited product selection
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No investor protection
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Basic educational tools
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No withdrawal and inactivity fees
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Negative balance protection for clients under ASIC
Fees
| Minimum Deposit | $0 |
| Commission | $2.25 commission per lot per trade |
| EUR/USD spread | From 0.0 pips |
| GBP/USD spread | From 0.0 pips |
| Inactivity Fee | No |
| Account fee | No |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
Review
Why We Picked It
Fusion Markets is a hassle-free broker for anyone looking to trade cryptocurrency, CFDs, and FX. It was founded in 2010. Both trading and non-trading fees are minimal in the industry. With Fusion Markets, you can find easy account openings and a robust currency selection. The only platform available to you is MetaTrader 4, a popular choice among forex traders despite its antiquated layout and user interface. Trading view integration is also available.
It is regulated by the top-tier Australian authority, ASIC, as well as regulators in Vanuatu and the Seychelles. It provides negative balance protection for clients under ASIC. However, there is no investor protection.
Fusion Markets drawbacks
Fusion Markets’ shortcomings include the lack of investor protection and the unavailability of well-known assets like actual equities and exchange-traded funds (ETFs).
Who should use Fusion Markets?
Fusion Markets is a good choice for all types of traders, except novice traders. Unfortunately, it is not considered good for beginners.
Key features
| Instruments to trade | Stocks, Indices, Commodities, Energies, Cryptocurrency, Precious Metals |
| Base currency | USD, GBP, EUR, JPY, CAD, SGD, THB, AUD |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MetaTrader 4, MetaTrader 5, cTrader |
| Demo account | Yes |
| Regulation | FSA (Seychelles), ASIC (Australia), VFSC (Vanuatu) |
| Customer services | Phone, Chat, Email, Whatsapp, Telegram |
| Banned Countries | The United States or its territories – American Samoa, Guam, Puerto Rico, the Northern Mariana Islands, the U.S. Virgin Islands, Afghanistan, Congo, Iran, Iraq, Japan, Myanmar, New Zealand, North Korea, Ontario, Canada, Palestine, Russia, Somalia, Sudan, Syria, Ukraine, and Yemen. |
- Minimum deposit: $200 (Standard ECN account), $500 (ECN zero account)
- Spread: From 0.1 pips
- Leverage: 1:2000 (country-specific)
- Currency options: 48 pair
Pros and Cons
Pros
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A leverage of up to 1:2000 is offered to eligible traders.
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Tight spreads starting at 0.1 pips
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Quick execution rates, with an order execution time of 0.12 seconds on average
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Client funds are segregated and covered by insurance.
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24/7 customer support in multiple languages
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Extensive educational resources
Pros
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Only supports MT4, MT5, and FXTM Trader.
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Limited deposit and withdrawal options compared to other brokers
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An inactivity fee is charged after 180 days of no trading activity.
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Withdrawal fees apply based on the method of payment utilized.
Fees
| Minimum Deposit | $200 (Standard ECN account), $500 (ECN zero account) |
| Commission | ECN standard ($2 per traded lot, per slide), ECN zero ($0), FXTM Pro ($0) |
| EUR/USD Spread | ECN standard (0.1 pips), ECN zero (1.5 pips), FXTM pro (0.0 pips) |
| Overnight Fee | $5 |
| Inactivity Fees | $5 after 6 months of inactivity |
| Deposit Fee | $0 |
| Withdrawal Fee | $3 |
Review
Why We Picked It
FXTM, or ForexTime, was established in 2011 and is a globally recognized forex broker known for its diverse range of trading products. Spreads are competitive and vary based on market volatility. They mainly offer three account types that offer access to the Electronic Communications Network.
- Standard ECN account: This account requires $500 as a minimum deposit. This account offers a minimum spread of 0.1 pips and a small commission of $2 per traded lot, which is competitive. This account also comes with a demo facility.
- ECN Zero account: This account requires $200 as a minimum deposit. In contrast to a regular ECN account, there are no fees associated with trading. In this account, the minimum spread is 1.5 pips.
- FXTM Pro Account: This account is for professional traders and requires a minimum deposit of $25,000. This account offers spreads from 0.0 pips, and there are no commissions to pay.
Both the standard and zero ECN accounts also come with swap-free trading when using MT4. MT5 is also supported.
FXTM drawbacks
From the drawbacks point of view, both the standard ECN account and the FXTM zero account come with standard overnight financing fees. Apart from this, there is also a minimum deposit requirement of $200 and $500, respectively, which is quite high for novice traders.
Who should use FXTM?
FXTM is suitable for all traders with its cutting-edge technology, high leverage, excellent commission-based forex pricing environment, and transparency. They also have quality market research and educational materials for beginning traders.
Key features
| Instruments to trade | Stocks, Commodities, Indices, Cryptocurrencies |
| Base currency | USD, EUR, GBP, NGN |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MetaTrader 4, MetaTrader 5, FXTM Trader |
| Demo account | Yes |
| Regulation | CySEC, FSCA, FCA, CMA, FSC Mauritius |
| Customer services | 24/5 live chat, phone, email |
| Bonus | Refer a Friend Program ($5 for you, $50 for a friend) |
| Banned Countries | The United States, Hong Kong, Mauritius, Japan, Canada, Haiti, Suriname, the Democratic Republic of Korea, Puerto Rico, Brazil, the Occupied Area of Cyprus |
- Minimum deposit: $5
- Spread: From 0.7 pips
- Leverage: 1:3000
- Currency options: 71 pair
Pros and Cons
Pros
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All it takes to open an account is a little deposit.
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Tight spreads starting from 0.7 pips
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Local payment methods are available to deposit and withdraw money.
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Offer a free demo account for 45 days.
Pros
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Offering a high leverage ratio might be helpful, but it also raises the risk of suffering significant losses, particularly for beginner traders.
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Limited range of assets
Fees
| Minimum Deposit | $5 |
| Commission | Free |
| Inactivity Fee | None |
| Account fee | No |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
Review
Why We Picked It
FBS is a leading global forex broker with 27 million clients across 150 countries. It is known for its wide range of trading offerings and user-friendly platforms. While it is not a true ECN broker, it offers an ECN trading account option, providing traders with access to direct market liquidity and competitive pricing.
FBS provides fast execution speed starting at 0.01 seconds, tight spreads, transparent pricing, multiple trading platforms (MT4, MT5), and responsive customer support with its ECN account, which enhances traders’ trading experience.
Additionally, FBS ensures client security with negative balance protection. It also offers good educational resources, market analysis, and trading tools for traders, which is extremely helpful for beginners.
FBS drawbacks
Currently, FBS doesn’t offer cryptocurrency trading. Its competitive conditions and extensive educational resources make it a compelling choice for traders seeking a comprehensive and accessible experience.
Who should use FBS?
FBS is best for traders looking for the lowest minimum deposit with the lowest possible spreads and high leverage.
Key features
| Instruments to trade | Forex, Precious Metals, Indices, Energies, Stocks, Crypto CFDs |
| Base Currencies | USD, EUR |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MetaTrader 4, MetaTrader 5, FBS Trader |
| Demo account | Yes |
| Regulation | IFSC, CySEC, ASIC, FSCA |
| Customer services | 24/7 |
| Bonus | None |
| Banned Countries | US, UK, Japan, Canada, Myanmar, Brazil, Israel, the Islamic Republic of Iran |
- Minimum Deposit: $50
- Commission: starting from $1.5 per lot (Pro-ECN Account)
- Leverage: Up to 1:20 (for CFDs on stocks), up to 1:500 (for currency pairs)
- Currency options: More than 40 pair
Pros and Cons
Pros
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Tight spreads starting at 0.0 pips
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Fast and free withdrawals
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Super fast account opening
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Robust educational content
Pros
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The high minimum deposit on the Pro Account
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Limited product selection
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Investor protection is only available in the UK.
Fees
| Minimum Deposit | $50 |
| Commission | starting from $1.5 per lot |
| EUR/USD Spread | 0.1 pips |
| GBP/USD Spread | 0.3 pips |
| Inactivity Fee | No |
| Deposit Fee | No |
| Withdrawal Fee | No |
Review
Why We Picked It
Vantage offers a wide range of markets to trade, including FX pairs, indices, commodities, and share CFDs. It supports both the MT4 and MT5 trading platforms and offers three account types:
- Standard STP Account
- Raw ECN Account
- Pro-ECN Account
The Pro-ECN Account is good for professional traders because it has a minimum deposit of $20,000, spreads starting at 0.0 pips, and a very low $4 round-turn commission. The Raw ECN is a good deal too, with spreads starting at 0 pips but a slightly higher commission of $6 round turn.
With Vantage, creating an account is quick and entirely digital. It also supports the ZuluTrade social trading platform, which provides access to a vast pool of professional traders and profitable trading systems.
Vantage FX drawbacks
The primary drawback at Vantage FX is the high requirements for minimum deposits. The raw ECN account requires $500, and the pro-ECN account requires $20,000. However, there is the advantage of low trading fees. Apart from this, it also charges withdrawal fees for some funding methods. Lastly, Vantage provides investor protection only in the UK.
Who should use Vantage FX?
Vantage FX is good for experienced and professional traders who value low fees and are generally not concerned by high minimum deposits.
Key features
| Instruments to trade | Commodities, Energies, Stock CFDs, Forex, Indices, Metals, ETFs, Bonds |
| Base currency | USD, EUR, GBP, AUD, SGD, JPY, NZD, CAD, HKD |
| Scalping | Yes |
| Hedging | Yes |
| Trading platforms | MT4, MT5, ProTrader |
| Demo account | Yes |
| Regulation | FCA, FSCA, ASIC, CIMA |
| Customer services | 24/5 support via live chat, email, and phone |
| Bonus | 50% of first deposit, up to $500 credit (base currency) and 10% of subsequent deposits |
| Banned Countries | Afghanistan, American Samoa, Belarus, Burundi, Canada, Central African Republic, China, Cuba, Democratic Republic of Congo, Eritrea, Guam, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Liberia, Libya, Mali, Nicaragua, North Korea, Puerto Rico, Romania, Russia, Singapore, Somalia, South Sudan, Sudan, Syria, Ukraine, United States, Venezuela, Virgin Islands (U.S.), Yemen, and Zimbabwe. |
What is an ECN forex broker?
In ECN Broker, ECN stands for “Electronic Communication Network.” These are the financial intermediaries, or one type of forex broker, that use electronic communications networks (ECNs) to match buy and sell orders from different market participants in the currency markets without the involvement of intermediaries. This allows for direct access to the interbank market, providing traders with tighter spreads and faster execution speeds.
You know that currency trading is not done at any centralized place, like shares are traded on the stock exchange. The stock exchange is a centralized place for trading shares. But there is no such place to trade currency.
Most currency trading takes place on what is called the interbank market. The interbank market is where the world’s largest global banks exchange currencies to provide liquidity in the foreign exchange market. However, retail traders do not have access to this market, so they trade through ECNs or market makers.
ECN brokers connect buyers and sellers from every corner of the forex market. Since ECNs have access to traders on both the interbank market and retail brokerages, counterparties to trades can be found without the help of a market maker. Buyers and sellers can easily be matched, which results in quicker trades and more accurate spreads.
The advantage of trading with an ECN Forex broker is that they provide direct access to the Forex market without any middlemen.
When a client makes a transaction with an ECN broker, the broker collects prices from other participants in the network and offers the trader the tightest spread it can find to meet the volume requirement. Due to competition among the liquidity providers in this network for your trade, ECN brokers offer extremely tight spreads, often as low as 0 pip.
ECN Broker Fees and Commission
ECN brokers do not generate their revenue from spreads like traditional brokers; rather, they usually charge commissions, which is their cost for acting as a middleman and finding competitors for your lot. Apart from this, if you pay attention, you will find that they also have very high minimum account balances.
As we explained above, ECN brokers only act as an intermediary for a trade; they do not make money when traders lose. The reverse is true. Since an ECN broker receives a larger commission from a profitable trader over time, the brokers have an incentive for their clients’ success.
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How do I choose an ECN broker?
Here are some key factors to consider when selecting an ECN broker:
- Regulation: Ensure the broker is regulated by a reputable financial authority such as the FCA (Financial Conduct Authority), ASIC (Australian Securities and Investments Commission), or CySEC (Cyprus Securities and Exchange Commission). This ensures that the broker follows strict guidelines and practices fair trading. Check their track record and reputation in the industry through online reviews and forums.
- Trading Costs: When using a true ECN broker, you will not need to worry about spreads. A good ECN broker has tight spreads and affordable fees. You should thoroughly evaluate the broker’s fee structure, including commission fees and spreads. While ECN brokers generally offer tight spreads, they may charge high commission fees. So compare overall trading costs to determine the most cost-effective option for your trading style and volume. You should avoid ECN brokers with spreads wider than 0.3 pips and fees greater than $1–$2 per lot.
- Liquidity Providers: Research the broker’s liquidity providers and make sure they have access to a diverse pool of liquidity sources, including major banks and financial institutions. High liquidity ensures efficient order execution and minimal slippage.
- Trading Platform: The trading platform is very important. So you assess the broker’s trading platform and make sure it meets your needs in terms of functionality, reliability, and user-friendliness. So you should look for platforms that offer advanced charting tools, customizable indicators, and fast order execution.
- Trading Instruments: Consider the range of assets offered by the broker beyond Forex pairs. Some ECN brokers may also provide access to other asset classes, such as stocks, commodities, and cryptocurrencies. Choose a broker that offers the assets you are interested in trading.
- Leverage: Leverage is used by most experienced Forex traders. Otherwise, it is difficult to make viable profits, as forex prices move in such small amounts. Similarly, leverage makes forex trading more affordable for those on a budget. This is because you can enter more positions than you can fill in your account. Therefore, when researching the best ECN brokers, check what leverage limits are offered. Evaluate the broker’s trading conditions, including leverage ratios, minimum deposit requirements, and margin requirements. Make sure the trading conditions suit your risk tolerance and trading objectives.
- Customer Support: You can test the broker’s customer support services by raising questions or concerns. This lets you evaluate their responsiveness, professionalism, and willingness to assist traders. Look for brokers that offer multiple channels of communication and provide support in your preferred language.
- Educational resources: To help traders develop their abilities and expertise, one should look for brokers that provide trading tools and educational materials.
Why use an ECN forex broker?
These are some benefits of using an ECN Forex Broker:
- Transparent Pricing: ECN brokers display real-time bid and ask prices received from multiple liquidity providers, allowing traders to see the real market price and depth of liquidity. Trading decisions can be made more intelligently by traders thanks to this transparency.
- Direct Market Access: ECN brokers provide direct access to the interbank foreign exchange market, bypassing the intervention of any dealing desk. Which means higher bids and lower asking prices. This is because there is no “middleman” when trading with ECN brokers. This means that trades are executed directly with liquidity providers, eliminating potential conflicts of interest such as broker manipulation or re-quoting.
- Tight Spreads: ECN brokers often offer tighter spreads than market maker brokers because they aggregate prices from multiple liquidity providers. Most ECN accounts offer spreads of 0.0 pips on major pairs like EUR/USD and GBP/USD. Although spreads may increase during off-peak hours, they rarely increase more than a few basis points. This can result in lower trading costs for traders, especially those who trade frequently or in large volumes. This means you can make more money by using an ECN broker.
- No re-quote: Since trades are executed directly in the market, there is no need for a re-quote with ECN brokers. Traders can execute their trades at the prices visible on the platform without the risk of execution delays or changes by the broker.
- Anonymity: ECN trading allows traders to remain anonymous to liquidity providers, which can be beneficial for those employing certain trading strategies such as scalping or high-frequency trading. Finally, you can take advantage of current market conditions. Additionally, you will be able to deal impartially.
- Access to Depth of Market: ECN brokers often provide access to Depth of Market (DOM), which shows the order book and liquidity levels at different price levels. This information can be valuable for understanding market sentiment and making more informed trading decisions.
- No conflict of interest: As we mentioned above, ECN brokers make money through commissions rather than spreads; they simply act as intermediaries. They provide access to electronic communications networks, so wholesale prices are passed directly to traders. Therefore, their incentives are in line with those of the businessman. They want traders to be successful and continue trading rather than making profits from their losses.
FAQs
What is an ECN broker?
An ECN broker is a type of forex broker that uses electronic communication networks to match buy and sell orders from different market participants, providing direct access to the interbank market.
Can I trade with an ECN broker if I am a beginner?
Yes, if you are a beginner, then you can trade with an ECN broker. A lot of ECN brokers allow novice traders access to support and educational materials, so you can trade with them once you are well acquainted with the Forex market.
How do ECN brokers make money?
ECN brokers make money through the commission they charge. You know that traditional brokers typically make money through spreads. On the other hand, ECN brokers make money from commissions.
Are ECN brokers regulated?
Yes, most of the ECN brokers are regulated by reputable authorities around the world, such as the FCA, ASIC, CIMA, and CySEC. These regulators ensure fair and transparent trading practices.
What are the advantages of trading with an ECN broker?
Trading using an ECN broker has several advantages, such as direct access to the interbank market, transparent pricing, anonymity, quicker execution times, and tighter spreads.
Methodology
To choose the best ECN broker, we thoroughly check, verify, and compare the elements that we consider to be the most important to consider when choosing an excellent broker. This includes the benefits, drawbacks, and overall grades determined by our research. Our goal is to help you find the ideal broker for your investor needs. You can read more about our methodology by visiting this page.
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. According to one report, 74% to 89% of retail investor accounts lose money when trading CFDs. So you should consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.
