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- What is ECN?
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
Forex: ECN technology and its advantages over standard order fulfilment
The advantages of ECN trading with Alpari:
- 1 Market execution with no requotes.
- 2 Tight spreads.
- 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 No restriction on client trading strategies, which means that “scalping” is allowed.
- 5 Trade directly with liquidity providers.
Alpari’s ECN accounts
Alpari clients can open the following ECN accounts for trading Forex:
ECN accounts are managed on both the MetaTrader4 (MT4) and MetaTrader 5 (MT5) platforms.
- ↑ 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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More Frequently Asked Questions about Trading terms:
- When can I trade Forex?
- How do you calculate the value of one pip?
- Will my demo accounts expire?
- I have an account denominated in USD. Can I change the denomination?
- Why wasn't my order triggered? The Low was 2 pips below the order level.
- What is "GLD"? How can I make a deposit in GLD?
- How are my account statistics calculated on my GLD-denominated account?
- Can I lower my leverage?
- How can I calculate my profits or losses on a position?
- What happens when I leave a position open overnight?
- What is a "spike"?
- What is a "price gap"?
- Why did my broker close my position without my consent?
- How do I calculate the minimum amount required to open a position (margin)?
- How do I calculate the margin required on hedged positions?
- How do you calculate margin with floating leverage based on the total notional value of open positions?
- What is ECN?
- How is commission on pro.ecn.mt4 and ecn.mt5 accounts calculated?
- What are the risks of trading during periods of low liquidity?