ECN stands for Electronic Communication Network which is basically a platform for various financial units to gather and perform Forex trading processes. It is more of an online market place for various ECN brokers to make money via Forex trading. The ECN network does not only act as an important platform but also provides its clients and account holders with a comprehensive guide on Forex trading.
They also offer account management services along with trading of currencies for their busy clients who would not have the time to trade by themselves.
Guest Post by AFB FX – An ECN Forex Broker
So what are the advantages of ECN trading and why you should be considering it? Here are some reasons to ponder.
1). It Provides You With Anonymity
Account holders on ECN have the option to keep their trading activities anonymous. This anonymity helps prevent biased dealings and gives a fair platform for traders to deal with the actual market condition and trade on neutral prices. With trade tricks taught by the ECN platform, anonymous trading is way more effective and strategic.
2). Instantaneous Trading process
You don’t have to wait for trading results or processes. With ECN, you have access to immediate, live streaming of communication and trading facilities. You get to choose optimal prices with instant confirmations. As soon as you are done with a trading, it’s locked and confirmed and therefore there’s no chance of re-quotes.
3). Direct Trading Between Client and Bank
If it’s difficult for you to pursue trading with banks on real time basis, the ECN platforms help clients trade with world class banks and leading financial institutions via global liquidity.
4). Automated Trading
With an intelligent API acting on the ECN network, trading becomes an automated process where clients can connect various trading models and other systems to the network’s data match engine. This enables clients to have a data feed and data match process which promotes efficient buying and selling of prices. The same data feed engine is helpful in various trade testing models and enables a transparent as well as effective live trading.
5). Direct Access to Market Prices
Clients and dealers on the ECN network have the advantage of being connected directly to the market and are therefore able to get live updates of market prices. The frequent fluctuations, supply and demand values and other volatile features are easily identified by clients and dealers in the network. The network helps clients to easily trade on a number of tight bid/offer spreads which are quite low in a regular market condition.