Forex or foreign exchange trading is now on the apex of the online trading industry. Many people are joining Forex in almost every second. So, my question to you is

If so, then one of the first things you need to do is choose the best broker for your business needs. The lucrative nature of the Forex business has attracted so many brokers that you do not know which of them to choose from.

While searching for thebest forex broker, most people usually look at things like commissions, spreads, the reputation of the dealer, etc., but ideally, your starting point should verify that the business model of the company brokerage uses.

If you are facing trouble in choosing the right broker for your need then I think this guide might be a vast helpful for you-

There are 2 main types of currency brokers that offer traders and investors have access to the forex market using entirely different business models.

They are ECN and Market Maker. An ECN broker (electronic communications network) is an FX broker that uses ECN operators to connect directly to interbank liquidity providers such as banks, hedge funds, and mutual funds.

They are also called non-dealing desk brokers which means that your orders will be sent directly to liquidity providers without the help of the leaders of the market. ECN brokers.

Unlike market makers that are on the opposite side of your trades, ECN brokers match your transactions among market players, which means they can not negotiate against you.

They take a commission on your trading volumes which means they want you to win so they can make a profit.

This is why ECN brokers are considered the purest form of currency traders there.

Benefits of working with a Forex broker is true ECN

One advantage of using a true ECN broker is that they offer a greater degree of anonymity that the leaders of the market.

This means that as a trader you will be able to take advantage of neutral price and the actual market conditions are reflected in the business.

In addition, there will be no bias on neutral price according to your strategies, tactics or current market positions.

With a true ECN broker, you can also take advantage of several techniques such as the effectiveness of tight spreads and fast execution speeds of trade.

As regards financial investment, you want to entrust your hard-earned money to a broker that is honest and trustworthy so that you can make the most of your investment.

There are several reasons why ECN brokers are more reliable than the leaders of the market.

An ECN broker uses the latest technology to ensure trade executions are quick and seamless and offers the best market prices available and affordable spreads.

They make a profit by charging a commission on your trading volumes which means they want you to win.

They provide their traders with direct access to the interbank market so they can discuss the actual market price.

It is because of this honesty and transparency that ECN brokers have more demand than market makers.

As mentioned earlier, the ECN brokers provide their clients direct access to liquidity providers which include banks and other institutional investors.

Therefore, traders are able to trade with international liquidity pool of highly qualified financial institutions, competitive and regulated. This ensures rapid execution of the order price.

This is probably the greatest advantages of using a real ECN broker. Most ECN brokers have a reputation for being knowledgeable, trustworthy and reliable.

The reason is that they do not need the help of a dealing desk, meaning they have more flexibility than market officials when dealing with client orders.

This flexibility enables ECN brokers to execute the orders of their clients without interference.

The risks of working with an ECN broker are very few and those that exist primarily affect small retail traders. The two disadvantages of using a real ECN broker you should keep in mind.

ECN brokers offer variable spreads which are generally dictated by the current market conditions.

Sometimes these differences can change dramatically, especially when there is high volatility that may affect your trading strategy and affect your open positions.

Working with a true ECN broker that directly connects you to market participants which include major financial institutions comes with a huge price.

One of them is an initial investment required to open an account with a real ECN FX broker. Some brokers also charge a commission as high as $ 3.50 per transaction, which may be unsustainable for retail forex traders.

When using an ECN forex broker as IC Markets comes with many benefits, there are also some notable risks as a trader, you should keep in mind.

Small retail traders, who have limited financial muscle, it can be difficult to use a true ECN broker and prefer market makers.

However, if your budget allows, ECN brokers are the best if you want to make some real money in Forex.

Hey guys, Im Don Mirza and Ive been working on Forex and Cryptocurrency field from a vast amount of time. Financial Author of TopAsiaFX

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