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Difference between ECN and retail broker?

  • #41
  • Jan 26, 2011 9:33am Jan 26, 2011 9:33am
ECNs are true market, Market Makers are not
  • #42
  • Feb 7, 2012 7:07am Feb 7, 2012 7:07am
Is true that an ECN broker is better than a regular broker like a market maker, but the thing is that there is nothing wrong with a market maker IF and only IF, they will let you trade on volatile moments, the platform does not crash, they have good execution when making a withdrawal request and you receive your money on time, if a broker does all this its fine.. But.. because a market maker does not want you to win money it is hard to find one honest, that is why is so much better to trade with a true ECN Broker... they dont care if y ou win or loss cuz your transactions are being executed straight on the market and not at the broker itself..
  • #43
  • Apr 18, 2012 7:05pm Apr 18, 2012 7:05pm
Greetings to all of you in this thread. To be candid, I have learnt a lot here.
For the past 6 months I have been Demo Trading with alpari NZ and my trades are positive.

I want to trade live but reviews on brokers on many sites threw me off balance.

Please I need your help now. Which ECN Broker(s) should I use that will give live quotes and won't manipulate trades against me ?

I appreciate your help.
  • #44
  • Nov 17, 2012 5:11am Nov 17, 2012 5:11am
Here is a broker that claims to be ECN: www.admiralmarkets.com.au - any thoughts/comments by anyone please?
  • #45
  • Nov 17, 2012 5:12am Nov 17, 2012 5:12am
Also, views on IGMarkets please.
  • #46
  • Nov 27, 2012 3:56am Nov 27, 2012 3:56am
I personally use FXPRIMUS ECN account. I used to use another broker but suffered a few slippages and re-quotes.

So far, my broker has been smooth for me. Their ECN spread is also very competitive. I must say their customer service has been top notch as well. Overall, they are really professional and it is the right broker for me.
"Let's trade Forex baby!" - Mario Sant Singh
  • #47
  • Nov 27, 2012 4:00pm Nov 27, 2012 4:00pm
On FXCM, can you provide more info on your loss and have you got any updates on it?
And on ECN, you need to double check and make sure they are for real..at the moment, use both Trader's Way and FXCM for ecn, so far good and no issues yet.
  • #48
  • Dec 13, 2012 8:10pm Dec 13, 2012 8:10pm
All this info is top notch, I'm a new guy to this, I've only played on demo accounts with Alpari and Oanda in the past, sometimes to great success other times to absolute failure. Now I'm looking at it again and hoping to design an automated system using meta trader 4 or 5. I would like to see what I can do manually when I finally figure out what I'm doing too
Are there any books anybody recommends me to read through ? recommended brokers that work with the MT platforms ?
Once I get this ball rolling, (I'm a terrible procrastinator), I'll probably need all the help I can get.
  • #49
  • Dec 14, 2012 8:56pm Dec 14, 2012 8:56pm
Quoting Atrophy
All this info is top notch, I'm a new guy to this, I've only played on demo accounts with Alpari and Oanda in the past, sometimes to great success other times to absolute failure. Now I'm looking at it again and hoping to design an automated system using meta trader 4 or 5. I would like to see what I can do manually when I finally figure out what I'm doing too
Are there any books anybody recommends me to read through ? recommended brokers that work with the MT platforms ?
Once I get this ball rolling, (I'm a terrible procrastinator), I'll probably...
On books, there's quite a few but you may want to start off with some of the basic info on the market. And on automated trading, let us know how it turns out.good luck!
  • #50
  • Dec 26, 2012 6:46pm Dec 26, 2012 6:46pm
Be careful as some brokers call themselves ECN brokers but they are not really ECN brokers at all. A True ECN broker won't have any trade restrictions like stop loss and take profit limts. So just beware.
  • #51
  • Jan 19, 2015 3:23pm Jan 19, 2015 3:23pm
So, 3 years after the question by 4xpipsense what ECN would you now suggest guys?
thanx
HOPING = LOSING
  • #52
  • Feb 20, 2015 3:11pm Feb 20, 2015 3:11pm
My advice is that if you want to be involved in a fair game of trading, then lesson number 1 is identifying a good broker. based on your question, you would probably want to go with an ECN, forget about the retail brokers, the name itself betrays them. For them it's more about business rather than service and as such you shouldn't expect a fair game from them. ECNs however are guaranteed to hand you a fair chance of making it in the Forex market.
  • #53
  • Apr 3, 2015 6:15am Apr 3, 2015 6:15am
I think this video can explain what ECN is.
Inserted Video
  • #54
  • Apr 3, 2015 8:37am Apr 3, 2015 8:37am
Quoting AlejandroFX
Is true that an ECN broker is better than a regular broker like a market maker, but the thing is that there is nothing wrong with a market maker IF and only IF, they will let you trade on volatile moments, the platform does not crash, they have good execution when making a withdrawal request and you receive your money on time, if a broker does all this its fine.. But.. because a market maker does not want you to win money it is hard to find one honest, that is why is so much better to trade with a true ECN Broker... they dont care if y ou win or...

That is the definition of a good broker. The twist is the brokers which have everything you mentioned are not "mainstream" brokers. A lot of these brokers which you see in AUD OR RBL are the best ones.
Everything in life has a "counter". Especially in forex.
  • #55
  • May 15, 2015 1:23am May 15, 2015 1:23am
Quoting awesomefx
ECNs are true market, Market Makers are not
How can I understand that a broker is a market maker? I really often read a piece of advise 'beware of market makers', but how can i know it?
  • #56
  • May 26, 2015 7:17pm May 26, 2015 7:17pm
Quoting Dunno67
{quote} How can I understand that a broker is a market maker? I really often read a piece of advise 'beware of market makers', but how can i know it?
All brokers are market makers
  • #57
  • Sep 3, 2015 5:31am Sep 3, 2015 5:31am
Hi Darkstar!

Great way of putting it! Really enjoy your posts.

kevinfxtrader.blogspot.com
kevinfxtrader blogspot com; 50 PIPS Per Day
  • #58
  • Sep 3, 2015 8:21pm Sep 3, 2015 8:21pm
Quoting Darkstar
A retail forex company acts as the market maker for all your trades. They shade prices, widen spreads arbitrarily, and trade against you. Their basically modern day bucket shops. The advantages retail brokers provide are that you can open an account with very little money, they give you crazy leverage, and usually you can demo trade on their platforms until you learn what you're doing. Most of them also have micro and mini lots so you can trade very small sizes. An ECN is like an interbank broker. They don't trade against you so there is no need...
Quoting simcord
I think this video can explain what ECN is. https://www.youtube.com/watch?v=zbQTAqUtSK4
Great posts.
I'm on ECN myself and I'll never go back to Market Maker!
  • #59
  • Sep 13, 2015 6:44am Sep 13, 2015 6:44am
Are there any good ECN brokers in the United States?
  • #60
  • Sep 14, 2015 7:27am Sep 14, 2015 7:27am
Here is a list what I am usually checking when choosing a broker:
1. Market execution.
2. Trade execution should be between 200-350ms.
3. Low trading cost. For example EUR/USD average spread should be 0.3 pips and commission 2 per side. Even if spread is 0.1-0.2 pips higher it will have a huge impact on your profitability. Of course it also depends on trading strategy.
4. Low negative and positive slippage.
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