ECN / STP broker - List of the best offers

ECN / STP broker - Ranking of the best Forex offers

Brokers offering trading in the ECN and STP models have become extremely desirable by retail traders. Investors who were once condemned to Market Maker services as they grow Forex market, they received a choice. This choice allows you to eliminate the biggest problems of using MM brokers.

Advantages of the ECN / STP model

First and foremost, ECN / STP broker gains the advantage of becoming only a transaction broker and offering its clients access to market execution of orders. Thanks to such companies as IC Markets, Tickmill or Dukascopy Europe, in recent years have been extremely popular among traders.

In addition, the ECN broker provides:

• Low transaction costs,
• Market spreads,
• Access to the depth of the market (not always),
• Access to Limit / Offer orders (not always),
• Very fast execution of orders,
• No manipulation possible.

Types of brokers - ECN, STP, MM

ECN / STP broker - Comparison of offers

List of offers 2024

End	Australia, Cyprus, Mauritius	Cyprus	UK, Cyprus	Latvia
Platform	MT 4/5, cTrader	MT4, cTrader	MT4, MT5	JForex, **** Multicharts
Min. Deposit	200$	100 EUR	100 PLN / 25 $	100 PLN / 100 $
* Leverage - Retail Client	1:500	1:30	1:30	1:30
* Leverage - professional client	-	1:500	1:500	-
Min. Volume	0.01	0.01	0.01	0.01
**Commission	5,5 $ for 1 flight	from $5 to $8 for 1 lot	5 $ for 1 flight	from 0,0001% to 0,0035%
Forex Club discount	-21%	from -20% to -38%	-10% (MT5)	-20%****
*** VIP commission	-	5 $ for 1 flight	-	-
Number of instruments	1700	200	600	700
Deposit guarantee	-	in 100% to 20 000 EUR	to 85 000 GBP	in 100% to 3000 EUR in 90% to 22 000 EUR
Debit protection	-	YES	YES	YES
CREATE AN ACCOUNT	DEMO	DEMO	DEMO	DEMO
	REAL	REAL	REAL	REAL

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. From 74% to 89% of retail investor accounts record monetary losses as a result of trading CFDs. Think about whether you understand how CFDs work and whether you can afford the high risk of losing your money.

1. * Maximum leverage based on applicable regulations.
2. ** Commission including the Forex Club discount.
3. *** The commission offered by the broker under additional conditions.
4. ****The commission discount is valid for the first month after opening the account.

Forex broker and trader's expectations

Choosing your trading broker, which is a broker, is one of the key decisions that affects both our psychological comfort, trading options, investment profitability, as well as the security of funds. It should be noted, however, that the very model in which the broker operates, will rarely be a decisive element about whether we will earn or not. Choosing a reliable partner can only help us.

Before choosing where to set up a real Forex account, you must first set a selection criterion and specify your expectations.

Broker after daytrading and scalping

In short-term trading and concluding a large number of transactions with narrow orders Stop Loss / Take Profit, the key element will be above all the level of transaction costs (spreads, commissions) and the fastest possible execution of orders. An ECN broker in this situation is a good choice.

Medium term trading broker

There are many ways for medium-term trading. The choice of broker in this case should be strictly dependent on the methodology used, the number of transactions concluded and the instruments selected for trading. In the vast majority of cases, you probably won't feel the difference when entering into a transaction, be it with an ECN broker or MM.

Long-term trading broker

In long-term trading, such elements as the cost of the spread or commission lose their importance. There are fewer positions, which makes the cost of opening / closing less important. It is similar with the execution of orders - the speed of opening the position will not be significant, and a 1-2 pips slide at Take Profit of 300-500 pips will be imperceptible for the long-term result. However, they are an important factor swap points, i.e. the cost of maintaining the position for the next day. The order execution model will be insignificant but it often turns out that it is the ECN broker that offers the most attractive swap rates.

Other preferences

If you want to invest in specific, niche instruments or a specific trading platform, our choice is severely limited. In this situation, we usually have to make a compromise and calculate whether the order execution model is a key factor for us when choosing a broker. ECN brokers rarely offer a substantial number of instruments. Thousands of assets available for trading are mainly available from Market Maker brokers, which also results from listings of all Forex brokers.

Conflict of interest and the ECN Broker

In the ECN / STP model, the broker only becomes an intermediary in the execution of orders. He is not the only or final party to the transactions of his clients. As a result, the loss of the trader is not a broker's profit, and the intermediary only receives remuneration for commissions for opening and closing the position. This solution makes the so-called * conflict of interest on the line broker <-> trader it is minimized to almost zero and ensures healthy partner relationships.

* In extreme cases, a conflict of interest may arise in the ECN / STP model, where ultimately the broker's loss will be, in whole or in part, an additional gain of the broker. This may be due to extraordinary market events or an infrastructural problem. Another case where such a phenomenon occurs is the unethical conduct of the business by the broker.