The Wild West days are gone, so really at this point, most traders will discover that they can use an ECN or a standard account and earn money. Otherwise, any difficulty you encounter should have nothing to do with the type of runner. Save my name, email, and website in this browser for the next time I comment.
Forex Academy. Please enter your comment! Please enter your name here. You have entered an incorrect email address! Popular Articles. How Important are Chart Patterns in Forex? Academy is a free news and research website, offering educational information to those who are interested in Forex trading. Understanding the Economics of Cryptocurrencies 13 June, Trade now! Standard account As a general rule, a standard account is generally thought of as one with the fixed spread.
The broker is the counterparty to any position you put on. The downside of course is that if you are a frequent trader, you might be paying something like 1.
People do not pay attention to the cost of execution, which is a killer over the long term if you are not careful. Established Maximum Leverage Minimum Account Our rating Compare Brokers Our Forex broker ratings are based on real-life testing of over 10 criteria, including regulation, trading platforms, assets offered, customer service and more.
Our rating Compare Brokers Our Forex broker ratings are based on real-life testing of over 10 criteria, including regulation, trading platforms, assets offered, customer service and more.
At the end of the day, the only thing you need to worry about is whether or not the broker can give you a decent and reliable fill, and of course whether or not it is fair. Forex brokers have come a long way over the last 10 or 15 years and are much more reputable. The days of the wild west are gone, so really at this point most traders will find that they can use either an ECN or a standard account and make money. If you are worried about the type of broker , the only time it really should come into play is if you are a scalper.
Otherwise, any difficulties you run into should not have anything to do with the broker. A true ECN account matches orders and executes accordingly, charging only commission for execution without placing any premium on the raw spread, while a standard account is usually managed by a market-making broker which artificially charges a premium spread to profit from execution.
What is an ECN account? A true ECN Electronic Communications Network account is a pure order-matching execution system, where the account provider charges a premium as commission per trade instead of artificially inflating the raw spread which occurs naturally within the order-matching process. ECN brokers execute by matching client orders and STP brokers execute by passing client orders directly to an external liquidity provider. ECN accounts can offer tighter spreads and a cheaper overall cost of trading in liquid market conditions, but STP brokerages can offer a similar ease and cost of execution without the disadvantage of the increased cost from a dealing desk.
Much will depend upon the quality of the service and the liquidity of markets traded. What is ECN trading? ECN brokers offer pure order-matching execution systems, where the broker charges a premium as commission per trade instead of artificially inflating the raw spread which occurs naturally within the order-matching process.
The cost of ECN trading tends to be cheaper above a certain trading volume. Ready to Start Trading? Apply online. Any Questions? Join Us in Just 1 Minute! Main page Account Types MT4. Instrument Bid Ask Spread. Learn more. Resources Why Us? New to the Market?
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