Tag: ECN

ECN is an acronym for Electronic Communications Network. A Forex ECN broker does not have a dealing desk but in its place offers a marketplace where multiple market makers, banks and investors can enter in competing bids and offers and have their trades filled by several liquidity providers in an anonymous trading environment. The trades are done in the name of the ECN broker, providing you with absolute anonymity. A trader may have their buy order filled by liquidity provider “A”, and close exactly the same order against liquidity provider “B”, or have their order matched internally by bid or offer of a different trader. The best bid and offer is showed the trader along with the market depth that is the collective volume offered at each price level. A significant quantity of market participants offering pricing to the ECN broker results in tighter spreads. Forex ECN brokers typically charge a commission for matching trades between their customers and the liquidity providers.

Utilising an ECN broker to trade forex provides a variety of major advantages, probably the most evident being narrow spreads and deep liquidity. Narrow spreads ensure that day traders and scalpers can exploit small price changes on an intraday basis. Deep liquidity ensures that significant volumes can easily be traded without having any effect on price this is especially important in volatile market conditions and provides significant advantages for traders utilising automated fx trading systems. These two components combined mean that it is possible for you to to take advantage of more buying and selling opportunities, more opportunity equals more profit potential.

You will find a number of ECN brokers available in the marketplace today with by far the most widespread ECN used being Currenex. Currenex is generally employed by institutions and investment banks and out of reach for most retail investors, however in recent times as the demand for narrow spreads and transparency has improved extensively a lot of commonly accepted retail forex trading platforms such as Metatrader have been custom-made to suit ECN providers. Nowadays more than ever the bridge between retail traders and investment banks is tightening.

It goes without saying using an ECN company is not going to be of any benefit if you do not have a strategy. Developing a forex trading strategy that takes into consideration your risk profile, lifestyle and investment is crucial before you start trading. After formulating your trading plan it is best to then try a variety forex trading platform demos to see which trading platform most closely fits your trading plan. Of course its essential that you choose a forex platform offered by an ECN broker. It can often be tricky to find out whether or not a forex company is in fact an ECN provider, however as a guideline ECN providers will charge commission on your transaction rather quoting you a widened spread.

Forex trading is becoming so popular these days that more people are eager to invest in it with the hope of doubling or tripling the initial amount of investment.

It is quite natural to get tempted to see the large number of investors being successful in foreign exchange trading. But before jumping into the pool, it is very essential to know about the different mechanisms involved with this interesting game of trading. While playing this game safely there are a few things that should be handled with care and caution.

The first and foremost approach towards safe forex trading is to choose the right broker. Your forex broker will be your bridge to the market. If you choose the wrong one, it can result into big setbacks on your investment. Always remember that the foreign exchange market involves high risk and hence any simple mistake can lead to dire consequences.

The best thing to do is to study about the brokers and understand how to work with them. Try to learn their objectives and the investment strategies implemented by them to help you throughout the trading process. Here are few factors that can help you out in this regard.

Brokerage:
A good broker plays a significant role in a trader’s life. Your broker will act like a bridge i.e. the connecting link between you and the market. They will help you with the necessary trading tools. Brokers act as advisers for the traders. Therefore, it is very essential to choose a good broker in this respect.
Selecting the wrong broker can result in wrong trading decisions. You must also be careful of the fact that there are plenty of scams prevailing over the internet these days. This might also include investment portals like foreign exchange trade.

Retail Brokers & ECN Brokers:
Brokers can be categorized into two types which are retail brokers and the ECN brokers. ECN brokers work by using an Electronic Communication Network which acts like an effective instrument for improved pricing and communication with the traders. Nowadays, the retail type is more common. It allows the traders to enjoy more freedom in trading, although the traders do not get much guidance. In ECN, there is a lower risk for the broker to compete with its traders.

Choosing the right broker:
In order to make the right choice of the broker, you have to be very cautious in certain things. Background check is very essential among the factors to consider before choosing the best broker. Try to check their experience in the business of forex trading and whether they possess recognition of the institutions in their certificates. Apart from this, you should also try to take into account the feedback about the services of the broker by checking their reviews.

Forex trading has become one of the biggest currency trading networks in the world. Millions of people are engaged in forex trading from different parts of the world. Forex trading happens all the time and plays a great role in foreign exchange matters. While forex trading is highly beneficial there are at the same time lots of dangers and insecurities for the amount you are investing. Most of the traders fail in forex because of lack of understanding the concept and lack of trading skills. They do not undergo any proper training and jump into trading only to lose their valuable hard-earned money. The only best way to stay away from such failures is to understand forex trading well and plan every step as properly as accurate as possible. For a trader to be successful in his trading his skills alone is insufficient, the trader should have his trading account with a highly cooperative forex broker that could offer you various assistance with their experience and features. This is most important for every trader.

There are several hundreds of brokers to choose from but you have to spend a lot of time analyzing the best ones out there. Taking all these things into consideration we have made things easier for you. Let us have a look at one such genuine forex trading broker popularly known as 4xp. They provide you with excellent and up-to-date trading services using their latest technology. In 4xp you have to liberty to choose from several account types including demo accounts, classic accounts, ECN accounts and even VIP accounts. Another astounding feature of 4xp forex trading is that they provide you with highly advanced trading platforms such as 4xphone, MetaTrader4, MetaTrader5, 4xp options, 4xp WebTrader and 4XP AutoTrading.

Most importantly in 4xp you can trade Forex, Stocks, Commodities and Indices all from one platform. Some of the features that makes 4xp different is that they provide you with discounted spreads as low as 1 pip. 4xp largely functions on the MetaTrader 4 platform making the experience highly unique and comfortable. 4xp helps you to learn about the current market situations with its daily market analysis programme. Apart from all these wonderful features, 4xp provides you with a bonus of up to30% on your first deposit. These are some unique features that make 4xp stand ahead of the other forex trading brokers. 4xp also provides you a facility of getting into risk free trading for 30 days. As a trader you have to be highly cautious when choosing your broker. You have to take into consideration variety of factors before you could choose your broker for your trading purpose. At the same time you have to undergo sufficient training to make your trading experience a success.