Brokers that offer ECN or an electronic communication network function as intermediaries in transactions between individual clients and the market. With the help of IT systems, these brokers collect orders from their retail clients and send them to the Forex market, subsequently entering them into relevant transactions. ECN brokers more and more frequently win the competition with an MM (Market Maker) broker as they can do the same job in a fraction of the time. As the popularity of ECN technology grows, more and more traders are looking to enroll with brokers who offer that facility. Here’s a list of 5 of the best forex brokers that offer ECN accounts.
1. Purple Trading
Purple Trading is a CFD and forex broker which is based out of Cyprus. With more than 75 instruments on offer, the broker is compatible with MT4, cTrader, and PAMM. It also offers ETF portfolios, which can be ideal for passive investors. The broker is regulated by the Financial Conduct Authority (FCA) in the UK, the Czech National Bank (CNB) in the Czech Republic, the National Bank of Slovakia (NBS), and the German Federal Financial Supervisory Authority (BaFin). It provides multiple payment methods such as Wire Transfer, Credit/Debit Cards, Neteller, Skril.
2. Royal Financial Trading
Based out of Australia, Royal is a forex/CFD broker that was founded back in 2006. It offers more than 90 instruments which consist mainly of forex pairs. It requires a minimum deposit of $50 which allows novice traders to invest easily. It has an ASIC license, a CySEC license, and a CMA license. The leverage allowed to traders varies by region, with the maximum leverage for the Australian branch at 1:400, while in the case of CySEC, the standard is 1:30. Royal allows payments in Wire transfer, Credit/Debit Card, Paper Check, Neteller, Skrill, Fasapay, Poli, Pay easy, and Cryptocurrencies.
3. Hantec Markets
Hantec Markets has been in the market for the last 25 years and has been primarily Asia-based. It has extended its services to provide in Europe as well. Trading in this broker is done according to a true ECN model, hence the broker is unable to ensure protection against negative balance, It has a license under the FCA for operations in Europe. It is one of the very few brokers that offers low spreads for trading exotic FX pairs. It supports both MT4 and Currenex.
Dukascopy is well known as one of the oldest ECN brokers available to retail clients. However, its clientele includes institutional clients. Dukascopy provides compatibility with MetaTrader 4 and offers its own java-based proprietary platform called JForex. While the broker isn’t exactly suited for small traders as it doesn’t allow trading in micro-lots, there are several diverse options available for larger investors. Payment options for Dukascopy include Wire Transfer, Debit Cards (Maestro, Visa Electron), Credit Cards (MasterCard, Visa), and Bank guarantees.