The Forex market is an unregulated market in which currencies are traded round the clock. There are millions of traders working with brokers from all over the globe to execute trades. However, there are many different kinds of Forex markets and methods of trading that are currently in use today. If you are a forex trader, you need to know about the Electronic Communications Network (ECN). The Electronic Communications Network is a unique platform that’s designed to facilitate trades between small market participants and larger, tier-1 liquidity providers.
ECN can be defined as forming a link between larger liquidity providers and smaller market participants (traders) with the help of an ECN broker. The role of an ECN broker is integral in this process, since the broker is responsible for facilitating the trade between the traders and the liquidity provider. The link between the ECN brokers, the traders and the liquidity providers is based on the financial information exchange protocol, also known as the FIX protocol.
There are several advantages of trading with an ECN broker. Here are a few:
- Anonymous Trading ;
- Client/Bank Trading ;
- Variable Spreads ;
- Client/Bank Trading ;
- Variable Spreads ;
- See more at: https://goo.gl/E5K1Qn
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