Benefits Offered By ECN Brokers

Posted by icmarkets on September 20th, 2014

There are many ways by which traders can benefit from an ECN Broker. More than the expertise that they offer, these brokers also provide their clients with the best opportunities for trade and give them a better chance at succeeding in the market. Here are the best advantages of using an ECN broker in your trade dealings:

· Anonymity – Buying and selling using an ECN (electronic communication network) and with the help of an ECN broker allows you to make all transactions completely anonymous. Trades you make through an ECN cannot be traced back to you, so you enjoy more protection and privacy. This is the kind of protection that many traders seek and is mostly what they like about ECN brokers. Anonymity is a great advantage when you use an aggressive-natured or relatively predatory trading strategy, which ultimately protects your performance in the trade.

· ECN brokers can act as your personal market maker – With an ECN broker, clients have the ability to make their own market. Orders can be placed in between the ask spread and the bid, hopeful that the ECN will be able to find a market participant who can and will match the order. Orders can even be placed outside the spread to gain several pips by setting a limit sell order on the ask while also placing a limit buy at the bid. Other brokers may impose different restrictions on how you make your market.

· Improved trade execution – ECN brokers can greatly help in improving execution on trades. With an ECN you are using a network where you can match-up with orders from the opposite side of the market spectrum and do so as quickly as possible. Execution is enhanced because you deal with a pool of large liquidity providers instead of just a single entity. An ECN allows you to see a choice of the best quotes offered at any given time in a currency pair made by market participants, thus allowing you to get a sense of how deep the market goes by looking at liquidities.

· Event and News Trading – ECN is ideal for news and event trading—two markets that can get extremely volatile. This is because you are permitted access to a network of a great number of institutional liquidity providers and get your orders filled successfully even in the most volatile of situations.

Good ECN brokers are not hard to find. You can tell a high-quality service provider from the unreliable by looking at the kinds of tools that they offer and use. The best ECN brokers employ advanced technologies and strategies to help clients succeed.

About IC Markets
Headquartered in Sydney, International Capital Markets Pty Ltd is a provider of online forex trading services, offering individual traders, money managers and institutional customers proprietary technology, tools and education to trade online. IC Markets has distinguished itself among industry leaders with its unique True ECN forex technology, proprietary tools and services, and remarkable focus on customer service. IC Markets is regulated by the Australian Securities and Investments Commission in Australia.


About the Author

Joined: September 20th, 2014
Articles Posted: 12

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