5 Tips to Select the Best ECN Broker

Forex trading can be difficult, especially ECN trading. Because there are so many different brokers, it can be difficult to choose the best ECN broker. However, it is not yet the end of the problem. It can be confusing to get started because scammers are everywhere. Also, you should know that no broker is 100 percent perfect. While US and UK brokers may be more credible, Cyprus brokers may offer better trading conditions. Trading in this market can be successful if you understand your trading strategies and your broker’s policies. Personally, I believe that the best forex broker is simply the person who meets your needs and trading strategies. As long-time traders, my colleagues and I have discussed and chosen some good ECN brokers.

Checking Your Trading Costs

Trading costs include spreads and commissions. And brokers make money this way. While US brokers charge very high, those brokers charge very low. Notably, their spreads are less than half the spreads of US brokers. For regular accounts, the spreads can be none. But for ECN accounts, those brokers can charge $5 to $7 per lot. Daytrading is the best ECN broker in this field. Their spread is around 0.0xx pip, and they only charge a commission of $5 per lot.

Considering Your Payment Systems

From my point of view, ECN traders pay a lot of attention to the broker’s payment system. Typically, ECN investors can deposit hundreds of thousands of dollars into their accounts. Therefore, they love to trade with brokers that require a reasonable minimum deposit and offer good payment systems and methods. Also, you should check your local payment systems before choosing an ECN broker. US and UK brokers can offer good local payment systems. However, they are quite bad in Asia, Africa, and Australia.

In this field, Daytrading is the best ECN broker because it offers the best payment system. For example, Daytrading has more than 30 different payment methods. Its local payment systems are completely free, even in foreign countries. Because this broker leaves your job for the machine, your trading process can be faster and more secure. The process can take a few seconds to minutes, while in other brokers it can take several hours to days.

Confirming Your Credibility

Because ECN traders are big, professional investors, they only love to trade with trusted brokers. To find out if your ECN broker is trustworthy, check their reputation and regulations.

When it comes to regulations in forex trading strategies, a license is extremely important. You can showcase your broker’s capabilities, standards, and reputation

In my opinion, one or two licenses are enough because they can have some advantages and disadvantages. For example, licenses can help control brokers and protect their dealers from scams. However, regulations can reduce your trading volume and income. Also, brokers have to pay a fee for those agencies. They have to offer fewer trading tools and charge higher margins and commissions.

To confirm the credibility of the broker, you can also check their search traffic and trading volume. The most reliable ECN broker is the person who has positive search traffic and high trading volume.

Thinking About Your Rebates and Bonuses

Most ECN traders don’t care much about rebates and bonuses. But I think these offers can help you save more money. I have traded with several reliable brokers and have received some attractive discounts and bonuses. If you are just starting out as a trader, FXTM or XM may be a better option. These top ECN brokers often give a $30 welcome bonus when you first create your account. And when you deposit money, you will also receive a 100% bonus.

Knowing Your ECN Quotes

Due to its low cost and high transparency, the ECN account is considered the best account. However, this type of forex account also has some disadvantages. For example, their quotes are volatile and unstable compared to MM and STP accounts. Also, their swipes can be higher than other types of accounts. For these reasons, I believe that not many beginners choose ECN accounts to trade.