Collaborating with a Broker ECN- What You Should Consider

Many traders are beginning to embrace trading on the ECN market. In fact, the popularity among traders is on the rise and even though there is a cost for each transactions made, the reasons why the popularity of ECN markets is rising is not farfetched. First of all, the main reason why many traders embrace the Broker ECN is because of liquidity issues. It is important to note that working with a broker ECN can help you in getting greater liquidity.

Note that what the ECN does is to help form a kind of bridge between the small market participant and the different tier 1liquidity providers. In this case, what the broker does is to forward the orders placed to the liquidity providers for them to carry out the execution. However, note that this can happen if the broker has obtained liquidity from tier 1 providers like the banks. It is important to understand that all these things are done on the Financial Information Exchange Protocol which is a highly secured and sophisticated platform.

Note that the ECN brokers will normally get some commission for each transaction made. However, this unfortunately is not well appreciated by traders who are used to paying something like a fixed fee but the brokers prefer it as the make more profit as the clients generate more trading volume. Note that that some things you need to know before collaborating with any ECN and they are:

Services:

Accessing new feeds and charts represent one of the biggest challenge or drawbacks when trading on the ECN market. There are just few brokers that can guarantee you have the access to charts and news feed when you trade on their platform. There are a lot of traders whose core strategy is based on charts and news feed because they use it to predict the fluctuations of the currency and make their decisions based on that. Therefore depriving them of charts and news feed is like disarming them with their core strategy and this may become a serious problem.

Therefore, as you decide on which broker to work with, it is important to choose the one that can offer you the right tools and quality service.

Reputation:

Do not fall for some cheap strategies adopted by some of these brokers to lure customers. There are a whole lot of them in the market and as such it is important to check and do a little research on their services to determine whether they are established or not. In this case, it will not be out of place to read some reviews to know what others are talking about their service. This will give you an idea about their reputation and whether you find them suitable to work with them. However, whatever the case, it is best to work with those brokers who have been established in the industry and have high reputation for providing excellent service.

CentroFX offers ECN NDD Accounts covering all kinds of trading needs. You get leverage up to 1:400, spreads starting from 0 pips plus high speed of execution. At CentroFX, traders are presented with the best possible conditions for trading.

OPEN YOUR CENTROFX ECN ACCOUNT TODAY!

WB2017082