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What is ECN?

ECN (Electronic Communications Network) is a network facilitating purchase and sales orders on financial instruments from retail clients, banks, and brokers alike. One of the main arguments in favour of using ECN is that client orders are displayed directly to the liquidity provider without interference from a broker.

How ECN technology works

The characteristics of ECN technology.

Forex: ECN technology and its advantages over standard order fulfilment

ECN technology
Standard fulfilment
Market execution
Yes
No
Absence of requotes
Yes
No
Absence of broker involvement
Yes
No
Liquidity
Multiple liquidity providers1
Only the broker provides liquidity

The advantages of ECN trading with Alpari:

  1. 1 Market execution with no requotes.
  2. 2 Tight spreads.
  3. 3 No Limit / Stop Levels (a minimum distance imposed between an order and the current price) meaning that clients can trade within the spread.
  4. 4 No restriction on client trading strategies, which means that “scalping” is allowed.
  5. 5 Trade directly with liquidity providers.

Alpari’s ECN accounts

Alpari clients can open the following ECN accounts for trading Forex:

  • ecn.mt4
  • pro.ecn.mt4
  • ecn.mt5

You can compare the different ECN Forex trading accounts on offer in the “Trading terms”. In addition, Alpari also offers PAMM accounts with ECN technology.

ECN accounts are managed on both the MetaTrader4 (MT4) and MetaTrader 5 (MT5) platforms.

Please note:

  1.  Orders are executed when prices are matched by various counterparties, which the electronic trading system aggregates. The large number of market participants ensures that the most competitive prices are generated.

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