ECN Forex Brokers
- Written By thinkforexbrokers
- Updated:
Known for offering some of the lowest forex spreads in the industry, ECN brokers have become the preferred choice for many modern traders—particularly those who have grown dissatisfied with the limitations of market maker models. ECN stands for “Electronic Communication Network,” a system that allows brokers to connect traders directly with liquidity providers and other financial institutions. If you’re looking for top-tier brokers utilizing ECN execution and want to better understand the advantages and potential drawbacks of this technology, we invite you to read on.
74-89 % of retails CFD accounts lose money
73.85 % of retails CFD accounts lose money
59.57 % of retails CFD accounts lose money
Trading leveraged product is risky
74-89% of retails CFD accounts lose money
75.5 % of retails CFD accounts lose money
The vast majority of retail client accounts lose money
70.64% of retails investor accounts lose money
55.68 % of retails accounts lose money
you may lose initial deposit while trading
Top 11 ECN Brokers
1. Fusion Markets
Fusion Markets is regulated by authorities in Vanuatu, Seychelles, and notably Australia—one of the most respected and trusted regulatory bodies among global traders. To further ensure client security, the broker keeps customer funds fully segregated from corporate funds, holding them in separate accounts at tier-1 banks such as HSBC and NAB. This level of transparency and protection underscores Fusion Markets’ strong reputation in the industry.
As a true No Dealing Desk (NDD) broker, Fusion Markets provides pricing directly from its liquidity providers. Traders using the Zero Account benefit from ultra-tight spreads starting at 0.0 pips, with a competitive round-turn commission of $4.50. Meanwhile, the Standard Account offers commission-free trading on forex and metals, applying a modest 0.9-pip markup to spreads.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
2. FP Markets
FP Markets has built a strong reputation by providing a reliable service to traders looking to engage in the forex market. The broker stands out with competitive ECN pricing, offering clients the ability to trade with spreads as low as 0.0 pips.
For traders who prioritize platform choice, FP Markets offers a versatile selection. Users can opt for popular platforms like MetaTrader (MT4 and MT5), or explore alternatives such as TradingView and cTrader. FP Markets caters to different trading preferences by offering both raw ECN accounts with spreads starting at zero pips and a $3 commission per side, as well as standard accounts with no commission but a one-pip spread markup. Both account types require a minimum deposit of just $50 to get started.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.92% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3. Global Prime
Global Prime, established in 2010, has grown into one of the more respected and well-known forex brokers in the industry. It holds licenses from the Australian Securities and Investments Commission (ASIC), a highly regarded tier-1 regulator, as well as the Vanuatu Financial Services Commission (VFSC). As a non-dealing desk (NDD) broker, Global Prime guarantees that it does not take the opposite side of client trades, eliminating potential conflicts of interest.
The broker offers several live account types to cater to different trading styles. The Standard Account features minimum spreads starting from 0.9 pips with no additional commission, making it suitable for newer or lower-volume traders. For those seeking tighter spreads and more institutional-grade pricing, the Raw Account provides ECN-style trading with spreads as low as 0.0 pips and a commission of $3.50 per side (or $7.00 round turn). This structure appeals to more experienced or higher-volume traders looking for greater cost-efficiency.
Global Prime operates under the trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017), which is authorized and regulated by ASIC, holding Australian Financial Services Licence No. 385620. Gleneagle Securities Pty Limited, trading as Global Prime FX, is incorporated in Vanuatu (Company Number 40256) and regulated by the VFSC. The website is owned and managed by FMGP Trading Group Pty Ltd, ABN 74 146 086 017.
4. TMGM
TMGM offers clients a choice between two account types, both featuring ECN execution. The first option, called the “Edge” account, is the broker’s premium offering, providing spreads from as low as 0.0 pips and a commission of $3.50 per side. Alternatively, traders can opt for the Classic account, which comes with wider spreads starting from 1 pip but no commission fees. TMGM clients can access a wide range of tradable instruments, including over 50 forex pairs, as well as indices, energies, metals, shares, cryptocurrencies, and more.
The content on this website is provided for general informational purposes only and does not constitute personal financial advice. Before acting on any information presented, you should assess its suitability with regard to your own objectives, financial situation, and needs. Trading in CFDs and Margin FX Contracts involves significant risk and may not be suitable for all investors. You could lose more than your initial deposit, and you do not own or have any rights to the underlying assets. We strongly recommend seeking independent financial advice and ensuring you fully understand the risks before trading. Please read and consider the relevant disclosure documents before acquiring any products featured on this website. The information and advertisements provided are not intended for use by any individual in jurisdictions where such use would violate local laws or regulations. Products and services on this website are not intended for residents of the United States.
5. OctaFX
Founded in 2011, OctaFX operates as a non-dealing desk broker, giving traders access to over 300 financial instruments, including a wide selection of major and exotic currency pairs. Spreads can go as low as 0.6 pips, offering competitive pricing for forex traders. When it comes to platforms, OctaFX supports both MetaTrader 4 and MetaTrader 5, in addition to its proprietary OctaTrader platform.
The broker places strong emphasis on customer support, providing 24/7 live chat assistance to help users whenever needed. This commitment to service is reflected in its solid reputation, with OctaFX holding a Trustpilot rating of 4.3.
6. IC Markets
IC Markets is regulated across multiple jurisdictions, holding licenses from the FSA, CySEC, and ASIC. This broad regulatory coverage allows the broker to offer services in various languages, including English, Italian, and Vietnamese, among others. Customer support is accessible via phone in many countries, and traders can also reach the support team through live chat or email. The live chat service is available 24/7, ensuring round-the-clock assistance.
IC Markets operates without a dealing desk and promotes its pricing model as “true ECN.” Traders can benefit from Raw Spread accounts, which offer spreads starting from 0.0 pips. These accounts are available on both cTrader and MetaTrader platforms, with commissions of $6 and $7 per round turn per standard lot, respectively.
CFDs are complex instruments that carry a high risk of rapid financial loss due to leverage. 70.64% of retail investor accounts lose money when trading CFDs with this provider. Before trading, you should carefully consider whether you fully understand how CFDs work and whether you can afford to take the significant risk of losing your money.
7. Eightcap
If you want to trade forex, Eightcap is a great option, featuring a diverse selection of 50 currency pairs. Besides forex, the platform also supports trading in indices, commodities, and shares.
You can trade using one of three platforms: MT4, MT5, or TradingView. Depositing funds is easy and flexible, with methods such as bank cards, cryptocurrencies, wire transfers, online banking, and Interac available for all account types. Choosing the Raw Account provides access to the tightest spreads starting from 0.0 pips, but note that this ECN execution account charges a commission of \$3.50 per side.
CFDs are complex instruments that carry a high risk of rapid financial loss due to leverage. Approximately 76.09% of retail investor accounts lose money when trading CFDs with this provider. It’s important to carefully consider whether you fully understand how CFDs work and whether you can afford to take the significant risk of losing your money.
8. Interactive Brokers
Interactive Brokers, founded by Thomas Peterffy in 1978, began offering online services in the 1990s and remains a popular choice among forex traders both in the US and internationally. Known today as IBKR, the broker provides trading across forex, stocks, options, and more. Its ECN-based accounts deliver notably competitive spreads, appealing to traders seeking cost-efficient execution.
For those new to trading, IBKR offers great educational resources through IBKR Campus, featuring a wide range of courses, webinars, podcasts, and other materials designed to support traders on their path to success.
Investing in financial products carries inherent risks. The value of your investments can go up or down, and you may lose more than your initial amount invested.
9. Saxo Bank
FXTM, established in 2011, has become a well-known broker providing access to global financial markets. The broker offers ECN execution via its Advantage account, with a minimum deposit requirement of \$200 (or €200) and spreads starting as low as 0.0 pips. Traders benefit from competitive commissions starting at \$3.50 per standard lot.
Beyond forex, FXTM also offers trading in a diverse range of asset classes, including spot metals, indices, commodities, cryptocurrencies, and stock CFDs. The ECN execution model ensures traders get the best available market prices with no requotes. This model also reduces conflicts of interest, promoting greater transparency and fairness in the execution of trades.
It’s important to be aware that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Approximately 65% of retail investor accounts lose money when trading CFDs with this provider. Before trading, you should carefully consider whether you understand how CFDs and other products work, and whether you can afford the high risk of losing your money.
10. BlackBull Markets
BlackBull Markets caters to a wide range of traders by offering access to various markets including forex, equities, and indices. The broker supports multiple popular platforms such as MetaTrader 4 and 5, TradingView, and cTrader, giving users plenty of options to choose from.
Minimum spreads depend on the account type: Standard accounts start at 0.8 pips, while Prime accounts offer tighter spreads from 0.1 pips. Prime ECN accounts carry a commission of $6 per standard lot traded. For high-volume traders, Institutional ECN accounts are also available. Regardless of the account, all come with a maximum leverage of 1:500.
11. FXTM
FXTM, established in 2011, has become a prominent broker offering access to financial markets worldwide. The broker provides ECN execution through its Advantage account, with a minimum deposit requirement of \$200 (or €200) and spreads starting from 0.0 pips. Forex traders benefit from competitive commissions, starting at \$3.50 per standard lot.
In addition to currencies, FXTM supports trading in a variety of other asset classes including spot metals, indices, commodities, cryptocurrencies, and stock CFDs. The ECN model ensures that traders receive order execution at the best available market prices with no requotes. This system also minimizes the potential for conflicts of interest, ensuring greater transparency and fairness in the trading process.
Comprehensive Comparison of the Top 10 ECN Forex Brokers
Forex Broker | Min Deposit | Regulators | Account Types | Min Contract Size | Trading Platforms | Commissions | Min Spread | Inactivity Fee |
$50 (AU$100) | ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas) | Standard, Raw, Demo, Professional, Islamic | 0.01 | MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView | $0 Standard Account $6 round turn on Pro Account | 1.0 pips Standard; 0.0 pips Raw | No | |
$200 | FSA (Seychelles), CySEC (Cyprus), ASIC (Australia), SCB (Bahamas), CMA (Kenya) | Raw Spread cTrader, Raw Spread MT, Standard MT | 0.01 | MetaTrader4, MetaTrader5, cTrader, ZuluTrade | $0 Standard (MetaTrader), $6 roundturn on Raw (cTrader), $7 roundturn on Raw (MetaTrader | 0.8 pips Standard, 0.0 pips Raw Accounts | No | |
$0 (Standard) $2,000 (Prime) $20,000 (Institutional) | FSA (Seychelles) (No. SD045), FMA (No. FSP403326) | ECN Standard, ECN Prime, ECN Institutional | 0.01 | MetaTrader4, MetaTrader5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade | $0 Standard; $6 per lot Prime; $4 per lot Institutional | 0.8 pips Standard; 0.1 pips Prime; 0.0 pips Institutional | No | |
$0 | ASIC, FSA (Seychelles), VFSC (Vanuatu) | Zero, Classic, Islamic, Demo, Professional | 0.01 | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView | $0 Classic Account $4.50 round turn on Zero Account | from 0.9 pips Classic; from 0.0 pips Zero | No | |
$0 | ASIC (No. 385620), VFSC (No. 40256) | Standard, Raw, Demo, Professional | 0.01 | MT4, MT4 Webtrader, MT4 Android; for VFSC clients MT4, MT5, and GP Copy | $0 Standard Accounts, $7 round turn on Raw Accounts | 0.9 pips Standard, 0.0 pips Raw | No | |
$25 | CySEC, MISA (Comoros) | OctaTrader, MetaTrader 5, MetTrader 4 | 0.01 | MT4, MT5, OctaTrader | $0 | 0.6 pips | No | |
$100 | SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296), SCA | Standard, Raw, TradingView Account | 0.01 | MetaTrader4, MetaTrader5, WebTrader, TradingView, Capitalise.ai, FlashTrader | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts | 0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts | No | |
$100 | ASIC, FMA, VFSC, FSC | Classic, Edge | 0.01 | MT4, MT5 | $0 Classic $7 round turn on Edge Account | 1.0 pips Claasic 0.0 pips Edge | $30 if balance drops below $500 or account is not used for over 6 months | |
$0 Classic $200,000 + Platinum $1,000,000 + VIP | FCA (No. 551422), FSA Denmark (No. 1149), MAS (No. 200601141M), ASIC (No. 32110128286), SFC Hong Kong (No. 1395901), FSA Japan (No. 0104-01-082810), Registered with CONSOB (no. 296) | Classic, Platinum, VIP | 0.01 | Proprietary, SaxoTraderGO, SaxoTraderPRO, TradingView, SaxoInvestor | Commissions are built into spreads | 0.9 pips (Classic), 0.8 (Platinum), 0.7 pips (VIP) | No | |
$0 | CFTC, CIRO, FCA, CBI, Central Bank of Hungary, ASIC, SFC (Hong Kong), SEBI, JSDA, MAS | IBKR Lite, IBKR Pro (Individual, Joint, Trust and Org Accounts) | 0.01 | IBKR Desktop, IBKR Trader Workstation, IBKR Mobile, IBKR GlobalTrader, IBKR ForecastTrader, IMPACT Mobile, Proprietary | $1 - $2 (varies according to traded volume) | From 0.1 pip | No |
Best ECN Forex Brokers Ranked by Trustpilot Score
Forex Broker | Trustpilot Reviews | |
9084 | ||
46,613 | ||
2340 | ||
3162 | ||
293 | ||
8598 | ||
3168 | ||
856 | ||
7358 | ||
3663 | ||
Definition and History of ECN Brokers
ECN brokers utilize Electronic Communication Network (ECN) technology, a system designed to match buy and sell orders automatically in both local and global markets. Unlike market makers, ECN brokers do not take the opposite side of the trade, eliminating potential conflicts of interest. Instead, the trade is executed directly between the client and liquidity providers such as banks or other financial institutions offering the quotes.
The roots of ECN technology date back to 1969, with the launch of Instinet, a system designed for direct institutional trading, bypassing traditional brokers. By the 1970s, the term “ECN” became more widely recognized as the SEC (Securities and Exchange Commission) began to encourage the use of electronic systems for order matching. This led to the creation of NASDAQ, the first fully electronic stock market. In the early days, major ECNs like Island and Archipelago began to revolutionize the stock trading industry.
ECNs made their way into the forex market later on, with Matchbook FX, founded in 1999, being the first ECN broker for internet currency trading. This allowed banks and other market participants to provide prices within the network, enabling buy-side participants to become price makers.
By the early 2000s, the adoption of ECNs expanded rapidly, thanks to their reduced costs, increased speed, enhanced transparency, and anonymity. Modern brokers, particularly in the forex space, leverage ECN systems to connect clients directly to the interbank market and earn commissions on the trades executed. Some brokers, traditionally using dealing desks, also offer ECN accounts to accommodate clients seeking more direct market access.
How Does ECN Operate?
ECN (Electronic Communication Network) technology facilitates the automatic matching of buyers and sellers in the trading market. ECN brokers allow clients to trade using quotes from multiple liquidity providers, which are directly passed on by the broker. This means traders receive the best available bid/ask quotes, as the broker consolidates them, ensuring transparency in the process.
A notable advantage of ECN technology is that it operates automatically, enabling traders to execute orders even outside traditional market hours, such as when the market is closed. This is especially beneficial in the forex market, which operates 24/5. Another key characteristic of ECN technology is its speed, which enhances execution times and overall trading efficiency.
Due to these features, ECN brokers are able to offer much narrower spreads than other broker types. However, the added technological infrastructure and services required for ECN execution come at a higher cost for brokers. To compensate for these expenses, brokers typically charge higher fees to traders.
When discussing ECN pricing models, it’s important to highlight the concepts of Depth of Market (DOM) and Level II Pricing. DOM provides real-time insights into all current buy and sell orders, allowing traders to see where liquidity is concentrated. This makes it easier to identify market trends and opportunities. Level II Pricing, on the other hand, gives traders access to the order books of multiple liquidity providers, enabling a detailed analysis and comparison of bid and ask prices across different brokers.
ECN Brokers vs. Dealing Desk Brokers vs. STP Brokers
Experienced traders typically recognize two main types of brokers based on their execution methods: dealing desk brokers (DDs) and non-dealing desk brokers (NDDs).
Dealing Desk Brokers (DDs)
Dealing desk brokers, also known as market makers, operate their own dealing desks. These brokers set market prices, generate quotes, and profit primarily through spreads. As a result, trading with a market maker usually involves wider spreads. Market makers can internalize the risk by holding the opposite position, meaning they profit if the trader loses. This has raised concerns about potential conflicts of interest, prompting some traders to avoid them. However, market makers can also externalize the risk by passing it to another liquidity provider (LP).
A key feature of dealing desk brokers is their ability to re-quote client orders. This occurs when a broker can no longer offer the originally quoted price and provides the trader with a new price.
Non-Dealing Desk Brokers (NDDs)
Non-dealing desk brokers, on the other hand, use either ECN or STP technology to execute trades.
ECN Brokers
ECN brokers do not profit from the spread like market makers. Instead, traders face additional costs in the form of markups and commissions. Since trades are routed directly to liquidity providers, there is no conflict of interest with the broker. ECN brokers are especially popular among scalpers and day traders due to their faster execution speeds, which are crucial for high-frequency trading.
STP Brokers
STP brokers, while similar to ECN brokers in that they do not use a dealing desk, act as intermediaries between traders and liquidity providers. Unlike ECN brokers, traders do not interact directly with the LPs. Like market makers, STP brokers earn money from the spread, but the primary difference lies in the execution method and the lack of a dealing desk.
In summary, ECN brokers are favored by traders who prioritize fast execution, such as scalpers, while STP brokers are a middle ground, offering a similar structure to market makers but without the dealing desk.
Advantages and Disadvantages of ECN Brokers
As is the case with all broker types, those that utilize the ECN execution method have both advantages and downsides that traders must be aware of before they create an account at a given broker.
- Key Pros
- Clients will seldom experience delays while trading
- Known for having very low spreads that may reach 0.0 pips
- Conflict of interest risks are absent
- Clients are presented with the best bid and ask prices
- Key Cons
- ECN accounts typically require a larger initial deposit
- Notable commissions and other fees will apply
