ECN Broker

An ECN broker is a forex financial expert that uses Electronic Communications Networks (ECNs) to give clients direct access to other participants in currency markets. ECN brokers are non-dealing desk brokers, meaning that they do not pass on order flow to market makers. Instead, they pass the orders to liquidity providers. ECN brokers generally offer their clients tighter spreads which is favorable for professional forex traders. A disadvantage of ECN is the price to pay for using it. Typically, the fees and commissions for using an ECN account are higher as compared to non-ECN systems. ECN brokers often charge a fixed commission per lot as a fee which could be around $10 for 1 standard lot ($100,000).