I know that forex trading can be difficult, especially ECN trading. Because there are so many different brokers, it can be hard to choose the best ECN broker. However, it is still not the end of the problem. You can be confusing when starting because scam brokers are everywhere. Also, you should know that no brokers are 100 percent perfect. While the US and UK brokers can be more credible, Cyprus brokers can offer better trading conditions. If you understand your trading strategies and your broker’s policies, you can be successful in this market. Personally, I think the best forex broker simply is the person that meets your trading needs and strategies. As longtime traders, I and my colleagues have discussed and chosen some good ECN brokers. They include Exness.com, XM.com, FxPro.com, FXTM.com and ICMarkets.com. To pick the best ECN broker for successful trading, six tips below can useful for you.
Checking their trading costs
Trading costs include spreads and commissions. And, brokers make money through these ways. While the US brokers charge very high, those brokers charge very low. In particular, their spreads are lower than half of spreads of the US brokers. For regular accounts, spreads can be none. But for ECN accounts, those brokers can charge 5$ to 7$ per lot. Exness is the best ECN broker in this field. Their spread is around 0.0xx pip, and they only charge 5$ commission for each lot.
Considering their payment systems
From my point of view, ECN traders pay high attention to the payment system of the broker. Normally, ECN investors may put hundreds of thousands dollars in their accounts. So, they love to trade with brokers that require reasonable minimum deposit and offer good payment systems and methods. Moreover, you should check their local payment systems before choosing an ECN broker. The US and UK brokers can offer good local payment systems. However, they are quite bad in Asia, Africa and Australia.
In this field, I consider Exness is the best ECN broker because they offer the best payment system. For example, Exness has more than 30 different payment methods. Their local payment systems are completely free, even in foreign countries. Because this broker leaves their work for the machine, their trading process can be faster and more secure. The process can take a few seconds to minutes while that in other brokers can take several hours to days.
Confirming their credibility
Because ECN traders are big and professional investors, they only love to trade with reliable brokers. To know if your ECN broker is reliable, check their reputation and regulations.
When it comes to regulations in forex trading, a license is extremely important. It can show the capabilities, standards and reputation of your broker. Some famous and trusted licenses include CySEC, FCA, FSB, ASIC, DFSA, NFA and CFTC. The best ECN brokers listed above have some reliable licenses. For example:
- com owns two licenses (CySEC, FCA) recognized by UK agencies.
- com has three licenses recognized by Dubai, South Africa and UK. They are CySEC, FCA, DFSA and FSB.
- com also gets three licenses: ASIC recognized by Australia, FCA and CySEC recognized by UK.
- com has one license (IFSC).
In my opinion, one or two licenses are enough because they can have some advantages and disadvantages. For example, licenses can help control brokers and protect their traders against scams. However, the regulations can reduce their trading volume and income. Moreover, brokers have to pay fee for those agencies. They have to offer less trading tools and charge higher spreads and commissions.
To confirm the broker’s credibility, you can also check their search traffic and trading volume. The most reliable ECN broker is the person who has positive search traffic and high trading volume.
Checking their local customer support
It’s very important to consider local customer support before choosing an ECN broker. Personally, I think that this factor can contribute partly to forex trading results. Because traders need constant and timely help and advice, they choose brokers with 24/7 customer service. For non-native traders, they love brokers that can assist in their language.
From my experience, those ECN brokers mentioned earlier do great job. Their customer service is available for 24/7 and they help their traders in multiple languages. Apart from online support, these brokers open local offices to help their clients better. In the countries that they don’t have representative offices, they will support by live chat or by phone. Here are some reputable ECN brokers with great customer support.
Exness: supports 24/7 and assists in 13 different languages
FxPro: assists in 19 different languages
XM: supports 24/7 and assists in 30 languages
These above are six tips for choosing the best ECN broker. If you’re interested in any broker, check all of their conditions. I hope that some good ECN brokers I mentioned could meet your trading demands and strategies.
Thinking of their rebates and bonuses
Most ECN traders don’t care much about rebates and bonuses. But personally, I think that these offers can help you save more money. I have traded with several reliable brokers and received some attractive rebates and bonuses. If you’re just starting out as a trader, FXTM or XM can be a better choice. These best ECN brokers often give 30$ welcome bonus when you create your account for the first time. And when you deposit money, you will also receive 100% bonus.
Knowing their ECN quotes
Because of low cost and high transparency, ECN account is considered the best account. However, this type of forex accounts also has some disadvantages. For example, their quotes are volatile and unstable compared to MM and STP accounts. Moreover, their slippages can be higher than other kinds of accounts. For these reasons, I think that not a lot of beginners choose ECN accounts for trading.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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