I have been discussing with a lot of traders to opt for best ECN forex brokers for many years. However, we all reckoned that there is no best ECN brokers in the globe. In fact, US and UK brokers are more and more trusted than others. On the other hand, Cyprus brokers are offering better trading conditions such as: lower spread, lower margin, better trading platforms and payment systems…therefore, you only can know which one is the top ECN brokers if you clearly understand about it as well as know their trading strategies. There are some standards that I think best ECN brokers should have. I will make a list of five brokers, so you can easily decide on how are the ECN brokers in your country based on some standards.
Here are top five rated brokers.
1. In order to choose best brokers, we should focus on these criteria.
- Reliable ECN brokers
- Lower trading cost:
- Lower spread
- Lower commission
- Better payment systems to lower deposit and withdrawal fee.
- Better rebate.
- Better bonus
- Better Trading conditions: Better quotes, developing more trading platforms, lower slippages, better execution speed, lower swap or fee swap.
- Better local supports.
We should pay particular attention to these standards because if brokers follow these things, they would be more trusted which traders can benefit from.
Best ECN brokers are reliable brokers.
In my opinion, credibility is regarded as a vitally important principle of becoming the best broker. Normally, the vast majority of ECN brokers are big traders, and certainly traders tend to choose them. Furthermore, traders are willing to deposit a lot of money on trusted brokers, even pay more for trading cost. As a result, traders are likely to evade risky brokers thanks to this standard.
For example, Exness is always a good option for all traders because of its reliability.\
2. How trusted ECN brokers are?
Clearly, to my mind, regulations are prerequisite for being the best broker. It is obviously onerous for brokers to acquire regulations due to some factors. Hence, the first step to choosing brokers is to check their regulations. So, what are regulations? Now, I will give you some general regulations that regulated brokers should have. Regulations are profit/non-profit organizations that manage regulated brokers.
- Maximum Leverage
- Quotes quality
- Broker’s minimum operation fund.
- Segregated accounts to protect clients.
- Advertising messages to avoid misleading for traders…
3. Regulations might have some adverse aspects.
There are some common negative sides of US/UK ECN brokers:
- High spread and commission.
- Higher margin requirements.
- Less trading platforms supported.
- Less payment methods…
All these disadvantages result from regulations. Because the regulations do not allow brokers to offer high leverage which lead to their lower trading volume. Hence, having a lower income is inevitable. In fact, brokers have to pay for regulation fee because of buying insurances for clients’ fund. It also costs them a big amount of money when investing in segregated accounts. It is said that US and UK regulations are more trusted but traders will not be protected by these regulations. Therefore, it would not be beneficial for Asian, Africa traders to spend much money on US/UK brokers.
4. What kind of regulations do these brokers have?
|1||Exness.com||CySEC, FCA (UK)|
|2||FxPro.com||CySEC, FCA (UK), DFSA (Dubai), FSB (South Africa).|
|3||XM.com||CySEC, FCA, ASIC|
From the table above, it is apparently seen that all these brokers have at least one trusted regulation such as: CYSEC, FCA or ASIC. To my mind, best brokers should have solely one regulation and certainly these brokers are better than others.
5. These three brokers are largest forex brokers in the world.
Here are their trading volume:
- Exness is one of the biggest forex brokers in the world: $400 Billions monthly.
- XM: $300 Billions monthly.
- FxPro: $ 100 Billion monthly.
Certainly, the larger brokers are, the more trusted they become.
All these retail brokers have been existing for more than 10 years without any scam report. To be honest, I’ve read some gripes about these brokers, yet these negative comments all come from new traders.
6. These ECN brokers charge lowest trading cost.
It is certain that US brokers tend to charge higher spread and commission. To demonstrate this, I will give an example here.
Example: Forex.com and FXCM charge roughly 1.7 – 2 pip for trading EUR/USD. On the other hand, all above brokers charge little spreads with 50% lower than US brokers.
For ECN accounts, they often charge from 0.0xx pip spread and from 5 – 7$ for each lot. Exness is the one that charges lower spread . Their spreads is about 0.0xx pip. sometimes,their spread is zero which is a good thing for traders. They only charge 5$ commission per lot while ICMarket charges from 6 – 7$, XM charges 6$.
7. Why Exness Payment system is so fast?
It is certain that Exness payment system is totally great. Exness uses machine which enables traders to withdraw their money quickly without any complain. Besides, Exness also has to pour money into some systems such as: e-wallets, banks, local payment systems … which help them to make all transactions run automatically.
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8. These ECN brokers offer more rebates/bonuses.
New traders always consider rebates and bonuses to be vital factors before trading with brokers. On the other hand, experienced traders are not really interested in these things because they can spend much money on brokers. In terms of these five brokers, EXTM and XM are providing new traders with a variety of bonus programs which make traders more captivated.
In reality, US and UK regulations don’t allow brokers to offer traders a lot of bonuses. It can be a negative thing for traders when trading with these brokers.
10.These five ECN brokers are offering good trading conditions.
Recently, when I asked traders a question” what is the best forex broker now?”. Nearly 95% traders reckoned that ECN account is the top of their choice. Paradoxically, 80% traders are trading with Market Maker and STP accounts.
The vantage point of ECN account is lower cost and transparency, but negative side is volatility. Trading ECN account is dangerous for beginners because its quotes are much more volatile than STP and MM accounts. Moreover, ECN slippages are higher and quotes are not stable. There are more no-quote errors and gaps. Hence, ECN brokers get stable quotes and less slippages. Currently, Exness always provide their customers a variety of good trading conditions.