ECN Platform Review
ECN, short for Electronic Communication Network, is a non-dealing platform meaning they do not operate a dealing desk. They provide a market place for banks and traders, allowing them to trade against each other using variable spreads. They automatically match buyers and sellers in the market place and provide the best bid/ask price based on the above inputs. When dealing with their platforms, spread will depend on the trading activity of a currency pair. For example a highly liquid pair (any of the 4 majors) will have no spread in heavily active trading period. I bet that sounds a bit ambiguous and that the question you might be asking yourself is “How the hell do they make money?”...they simply charge you a fixed commission for each transaction you make.
This is what most platforms looks like. This sample was taken form MB Trading demo account where it shows you a table of different currency pairs available with their bid/ask quote. The green, red and yellow lines provide you information about the spread on the different currencies available.
Positions The Positions window allows you to easily track and monitor your holdings in real time. This provides you with important information about the open and close PnL for each currency pair.
WatchlistThis table shows data for any pair you would like to monitor. You can track the currency pair of your choice and place an order from this window. To see the data of each pair simply click on one of the pair of your choice to place an order with number of lots, limit price and stop price desired.
Here is a list of all the forex brokers that use ECN as the preferred platform: -Interactive Brokers Top of: ECN Page
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