Australian ECN providers allow traders to directly access liquidity pools with no-dealing desks. Through forex trading platforms such as MT4, ECN/STP brokers achieve the lowest spreads and fastest speeds of any Australian broker.
Our forex comparisons and broker reviews are reader supported and we may receive payment when you click on a link to a partner site.
Our best ECN broker Australia list is the following:
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | Read Full Review |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Read review ›
|
98 |
ASIC, FCA CySEC, DFSA |
1.12 | 1.69 | 1.22 | 0.10 | 0.60 | 0.30 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
Read review ›
|
75 |
ASIC, SCB FCA,CySEC |
1.0 | 1.0 | 1.2 | 0.06 | 0.73 | 0.27 | $3.50 |
|
|
|
143ms |
$250 (Raw) $500 (Standard) |
40+ | 250+ | 500:1 | 500:1 |
|
Read review ›
|
85 |
ASIC, FSA-S CySEC |
0.62 | 0.83 | 0.77 | 0.02 | 0.23 | 0.17 | $3.50 |
|
|
|
134ms | $0 | 61+ | 18+ | 30:1 | 500:1 |
|
Read review ›
|
80 |
ASIC,CySEC FSCA,FSA-S,FSC-M |
1.1 | 1.3 | 1.3 | 0.10 | 0.20 | 0.20 | $3.00 |
|
|
|
225ms | $100 | 70+ | 10+ | 30:1 | 500:1 |
|
Read review ›
|
73 |
ASIC, CYSEC FSC, FSA, SCA |
1.0 | 1.3 | 1 | 0.2 | 0.5 | 0.2 | $3.50 |
|
|
|
144ms | $0 | 49+ | 14+ | 30:1 | 500:1 |
|
Read review ›
|
67 |
ASIC,FCA ,DFSA,FMA |
1.2 | 1.3 | 1.3 | 0.44 | 0.85 | 0.42 | $3.50 |
|
|
|
90ms | $0 | 72+ | 11+ | 30:1 | 400:1 |
|
Read review ›
|
71 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
|
|
|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
|
Read review ›
|
68 |
FCA, FSCA ASIC, FSA-S, CySEC |
1.1 | 1.3 | 1.1 | 0.1 | 0.3 | 0.2 | $3.50 |
|
|
|
161ms | $0 | 46+ | 21+ | 30:1 | 500:1 |
|
ECN providers offer the fastest execution speeds and tightest spreads due to their access to top-tier liquidity pools. This list contains our picks for the best Australian ECN forex brokers, based on a number of trading factors. Each broker also has one identifying feature that gives it an edge.
Forex Panel Score
Average Spread
EUR/USD = 0.1 GBP/USD = 0.4 AUD/USD = 0.2
Trading Platforms
MT4, MT5, cTrader, TradingView
Minimum Deposit
$0
Why We Recommend Pepperstone
Pepperstone earns our vote as the best ECN broker as it has no dealing desk, ensuring low spreads and rapid order execution.
Our tests found the Razor account has an average spread of 0.1 pips on the EUR/USD pair, commissions of $3.50 pairs and a limit order execution speed of 77ms. Forex traders can trade using MT4, MT5, cTrader and TradingView and scalping is permitted. All factors that make Pepperstone a good option for low cost trading.
Pros & Cons
Broker Details
Pepperstone Was The Fastest Best Low Free Broker
When the team thought about what Australian ECN traders want, we put the highest weight on execution speed, spreads, and customer service. Pepperstone excelled in all these areas primarily on their MetaTrader 4 platform which we tested the broker with.
Five Reasons Why We Rated Pepperstone The Best
Pepperstone has some of the lowest ECN spreads of any Australian broker as you can compare using our spread calculator.
Our Review Of PepperstoneVisit Pepperstone
How We Proved Pepperstone Has The Fastest Execution Speeds
Ross Collins, our CompareForexBrokers Chief Technology Researcher tested the execution speed of 20 forex brokers. When Ross ran MetaTrader 4 EAs over two 24-hour periods, he found that Pepperstone had the fastest Limit Order Execution Speed at just 77ms[1]Execution Speed Testing In 2024 By Ross Collins Using MT4 EAs. You can view the full execution speed test results page with the summary shown below.
Execution speeds matter as they avoid slippage. ECN traders make a large number of trades usually when there is high market volatility. If the broker is too slow the price quoted won’t be what the trader actually received. Slippage can be significant during periods such as interest rate announcements etc. which is why you really want a fast broker.
Pepperstone Offers The Best Trading Platforms
While we tested Pepperstone on their MT4 trading platform, the broker offered the full software suite. This includes MT5, cTrader, and TradingView. Once more, these platforms have enhanced ECN features to improve charting, the use of Expert Advisors, and other algorithmic trading features. For an even superior trading experience consider integrating Capitalise.ai with MT4 for no code automation or Myfxbook for social trading.
Pepperstone’s key trading platform is MT4. MT4 is one of our favourite platforms and Pepperstone allows you to seamlessly access your ECN Razor Account directly within MT4. The advantages of MT4 include:
As MT4 is one of the most popular forex platforms, we see Pepperstone as the best proponent of the platform.
Pepperstone Account Opening Is Very Straight-Forward
When signing up with a broker, you want to be able to do this quickly and with minimum fuss. Justin Grossbard, Strategic Head Of Research at CompareForexBrokers, opened 20 accounts to see which brokers have the best account opening experience. Justin found it took less than 10 minutes to open an account and this was immediate. As part of the opening process, he did not need to provide a credit card or funding details, only an address, a salary number, and a photocopy of his passport. An account manager gave Justin a phone call the very next day to check if he needed any assistance.
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 0.06 GBP/USD = 0.73 AUD/USD = 0.27
Trading Platforms
MT4, MT5, TradingView, Capitalise.ai
Minimum Deposit
$100
Why We Recommend Eightcap
We were impressed with Eightcap’s ECN account, with their RAW spread account featuring low average spread of just 0.06 pips for the EUR/USD currency pair, which is 0.16 pips below the industry average.
We should also note the 95 cryptos Eigthcap offers which is bar far the largest of any broker we have reviewed. Other products to trade include Indices, shares and gold.
If using MT4, we liked that you can use Capitalise.ai, an advanced automation tool that allows you to automate your trading without the need to know how to code.
Pros & Cons
Broker Details
Eightcap Has MetaTrader 4, 5 and TradingView
Eightcap is our top broker for its diverse offering of powerful ECN platforms. This is due to Eightcap’s wide range of platforms as well as the tight ECN ‘like’ spreads you can obtain using them. We scored Eightcap’s platform offering a solid 75/100, with key strengths being their trading platforms and range of funding methods.
Major highlights of Eightcap include:
We loved Eightcap’s Raw account spreads
Eightcap offers a Standard (commission-free) or RAW (commission-based trading) account. For the tightest spreads, the RAW account is the way to go, based on our analysis. You will pay commissions of AUD $7 per round turn with the RAW account but we found the standard account has marked-up spreads leading to overall higher fees.
We compiled a list of average spreads from major brokers and Eightcap comes out on top for ECN spreads. As you can see, Eightcap has some of the tightest spreads across most of the major currency pairs. These spreads are compiled and updated on a monthly basis.
|
ECN Broker Spreads
|
|||||
|---|---|---|---|---|---|
|
0.06 | 0.23 | 0.20 | 0.42 | 0.27 |
|
0.10 | 0.20 | 0.30 | 0.30 | 0.20 |
|
0.10 | 0.40 | 0.60 | 0.40 | 0.20 |
|
0.30 | 0.50 | 0.60 | 0.50 | 0.50 |
|
0.30 | 0.30 | N/A | 0.50 | 0.40 |
|
0.44 | 0.20 | 0.83 | 0.40 | 0.42 |
|
0.17 | 0.24 | N/A | 0.54 | 0.30 |
|
0.20 | 0.30 | 0.70 | 0.50 | 0.40 |
|
n/a | n/a | 0.30 | 0.60 | 0.50 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Eightcap’s Diverse Range of ECN Platforms
Not only does Eightcap have tight spreads, the broker also has a diverse and powerful range of ECN trading platforms which are:
MT4 and MT5 are two of the most popular forex and CFD trading platforms, while TradingView and Capitalise.ai are emerging as strong alternatives. TradingView also offers great charting features while Capitalise.ai specialises in algorithmic trading.
FX Blue Labs, CryptoCrusher, and The Amazing Trader are all specialist platforms. Of all these platforms, CryptoCrusher is the most unique platform to trade with and analyse Eightcap’s immense cryptocurrency range.
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 0.02 GBP/USD = 0.23 AUD/USD = 0.17
Trading Platforms
MT4, MT5, cTrader
Minimum Deposit
$200
Why We Recommend IC Markets
IC Markets found its way on our list because of its extremely low RAW spreads for ECN accounts. IC Markets claims their spreads average just 0.02 pips for EUR/USD and our tests done by Ross Collins confirmed IC Markets are the best broker for low spreads with the broker finishing in the top 2 or 20 brokers we tested.
IC Markets has trading with MetaTrader 4 & MetaTrader 5, and cTrader but we did notice their live chat was a bit slow.
Pros & Cons
Broker Details
IC Markets Finished First In Our Spreads Testing
Based on our extensive analysis, we have rated IC Markets as our best low-spread ECN broker, with some of the tightest spreads in Australia. We scored IC Markets 85/100 for trading experience with a total score of 831/1000 overall.
As one of the best ECN brokers in Australia, IC Markets also provides traders with the following benefits:
When it comes to ECN liquidity providers, IC Markets has the most comprehensive partner lists of all forex brokers. We see these partnerships as a shining reason for IC Markets’ low spreads on its RAW ECN account.
Our tests confirmed IC Markets has the tightest spreads
Based on his standard account spread testing findings, our Chief Technology Researcher, Ross Collins, found that IC Markets had the lowest forex market spreads compared to the average spreads published by each broker.
You can obtain spreads as low as zero with an average EUR/USD spread of 0.1 pips (AUD/USD at 0.3). Our review also concluded that IC Markets offers deep liquidity pools and fast execution speeds, suited for day traders.
By aggregating prices from up to 25 of IC Markets’ partner liquidity providers, the tightest spreads possible are always ensured.
| Broker | Average Spread | Average Spread Cost (USD) |
|---|---|---|
| IC Markets | 1.03 | $9.63 |
| CMC Markets | 1.11 | $10.10 |
| Fusion Markets | 1.19 | $11.07 |
| TMGM | 1.21 | $11.18 |
| Admiral Markets | 1.31 | $11.96 |
| FXCM | 1.47 | $13.49 |
| Pepperstone | 1.46 | $13.52 |
| FP Markets | 1.47 | $13.60 |
| Go Markets | 1.49 | $13.87 |
| EightCap | 1.51 | $13.97 |
| OANDA | 1.54 | $14.23 |
| Axi | 1.71 | $15.99 |
| City Index | 1.79 | $16.52 |
| Blackbull Markets | 1.82 | $16.95 |
| FXPro | 2.22 | $20.83 |
Trader tip
If you’re looking to keep your spreads as close to zero as possible, then trade during periods of high liquidity such as during the London open.
Stable And Fast ECN Trading Servers
Thanks to a global network of strategically placed trading servers, all IC Markets clients benefit from stable, yet lightning-fast ECN trading conditions. Trading conditions go hand in hand with low spreads and we have highlighted why IC Markets can deliver both.
MT4 bridge – A next-generation price aggregator used to connect clients’ trading platforms with deep liquidity pools of partner liquidity providers.
Server locations – Located in the Equinix NY4 data centre in New York, the servers are located close to the MT4 bridge. This ensures latency is minimised, reducing slippage and ensuring accurate fills.
IC Markets’ RAW Spread Account is a Low-Spread ECN Account
Based on our analysis, IC Markets Raw Spread Account is its ECN account where you will obtain the lowest spreads.
Key features of the IC Markets Raw Spread Account include:
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 0.1 GBP/USD = 0.2 AUD/USD = 0.1
Trading Platforms
MT4, MT5
Minimum Deposit
$100
Why We Recommend FP Markets
Australian-based FP Markets is a true ECN broker, with no dealing desk (NDD) execution model that offers the best trading services for scalping. Zero spread testing done by Ross Collins found their EUR/USD is 0 pips 97.83% of the time outside the rollover period, making them a good choice for scalping.
To trade with FP Markets, you can choose between MT4 and MT5 trading platforms and of course use EAs for automation should you wish.
Pros & Cons
Broker Details
FP Market’s MT4-MT5 Raw Account Spreads are Tight
Australia-based FP Markets is a true ECN broker, with no dealing desk (NDD) execution model that offers the best trading services for scalping. Upon further analysis, we found FP Markets’ best features to be:
FP Markets MT4 Traders Toolbox
FP Markets empowers the standard MT4 platform with a set of 12 unique trading tools. Along with the default MT4 indicators, FP Markets’ clients can access tick charts and a Mini Terminal that facilitates scalping. The Stealth Order features allow for automatic buying and selling of orders, which is crucial to a scalper.
Other advanced functionalities of the MT4 Trader Toolbox we liked include the ability to set up alerts. We also like the Sentiment Trader feature and the Trader Toolbox Connect tool for quality market research.
FP Markets ECN Account – Raw Account
FP Markets’ ECN account was specifically designed for active traders with high volume discounts, the RAW account provides scalpers with all the features that are conducive to profitable scalping.
Key features of the FP Markets RAW Account:
Fast ECN Order Execution and Low Spreads
To give scalpers and day traders an all-around trading experience, FP Markets complements its trading tools with fast execution, no requotes, and low latency. Additionally, FP Markets’ spreads are consistently low. While not at the top of our list, FP Markets competes with big names like Pepperstone and IC Markets which have the lowest spreads in the FX industry.
When trading, the average EUR/USD spread is 0.1 pips and 0.2 pips for AUD/USD as published on the FP Markets website. Moreover, we discovered FP Markets can obtain spreads as low as 0 pips for each of the major currency pairs.
In addition, FP Markets’ servers are located inside the Equinix NY4 data server, which ensures fast execution, ultra-low latency, and minimal slippage from our trading experience.
Forex Panel Score
Average Spread
EUR/USD = 0.2 GBP/USD = 0.5 AUD/USD = 0.2
Trading Platforms
MT4, MT5, cTrader, TradingView
Minimum Deposit
$200
Why We Recommend GO Markets
With commissions $2.50 GO Markets has one of the lowest commissions in the industry. What caught our attention was its extensive support for training platforms which includes MT4, MT5, cTrader, TradingView, and GO Markets’ in-house Go Markets Web platform.
This platform support is also why GO Markets is the only broker that received a perfect 10/10 score in our testing.
Pros & Cons
Broker Details
Go Markets Go Plus+ Account Commission Costs are the Best in the Market
As Australia’s original MetaTrader forex broker, GO Markets has taken a leading role in helping clients upgrade to the MetaTrader 5 trading platform. MT5 is a powerful upgrade of the popular MT4, which is one of our favourite platforms. For platform experience, GO Markets scored a mighty 90/100. In addition, some of GO Markets’ best features include:
Low spreads from 0.0 pips
GO Markets is a Specialist MetaTrader 5 (MT5) Broker
As a specialist MetaTrader 5 forex broker, GO Markets is trusted by both beginners and professional traders so caters to a wide range of trading styles.
Based on trading experience, the MT5 platform is a multi-functional, modern, and user-friendly trading platform with the following advantages:
GO Markets ECN Account is GO Plus+
As one of our best Australian ECN brokers, GO Markets has a specialist ECN account called GO Plus+.
Some of the key features of the GO Plus+ ECN Account are:
You can view our analysis of raw spread forex brokers and see how the commission rates and spreads compare leading to our GO Markets recommendation.
Forex Panel Score
Average Spread
EUR/USD = 0.44 GBP/USD = 0.85 AUD/USD = 0.42
Trading Platforms
MT4
Minimum Deposit
$0
Why We Recommend Axi
Axi (formerly AxiTrader) calls itself a MetaTrader 4 specialist since they don’t offer any other trading platforms. While choice of platforms would be nice to have, we think its more important to have the right platform for your needs and MT4 is a good choice. MetaTrader 4 comes with Autochartist and Trading Central for technical analysis and 72 Forex pairs are available for trading.
The broker has no minimum deposit requirement to sign up and uses 20 liquidity providers to bring you low spreads which average 1.2 pips with their standard account for EUR/USD and 0.44 pips with their Pro Account.
Pros & Cons
Broker Details
Axi Requires No Minimum Deposit When You Use Their Demo Account
Axi (formally AxiTrader) is part of our best Australian ECN broker big 3. If your most important aspect of a forex broker is having a low minimum deposit and the ability to trade micro-lots, then Axi is the best choice for you.
Axi’s best features are:
Known as a specialist MetaTrader broker because of its MT4 and MT5 trading platforms, Axi offers clients a free suite of add-ons for all traders with a live trading account – MT4 NexGen.
Many ECN Account Funding Methods
Being one of our top-rated Australian ECN brokers for its low minimum deposit, you can choose one of several ways to fund your Axi account:
Debit and credit cards (Visa, Mastercard, Maestro, JCB) – Instant, max 15 minutes.
NETELLER – Instant, max 15 minutes.
Skrill/Moneybookers – 3-5 business days.
Global Collect (only for Australian clients) – Same or the next day.
BPAY (only for Australian Clients) – 1-3 business days.
Bank Transfer – Same day for deposits coming from Australian bank accounts, next day for overseas accounts.
Broker to Broker Transfer – 3-5 business days.
Each funding type has its delays and charges, so we advise you to check with each provider before making a deposit or withdrawal from your Axi account.
We Love Axi’s NexGen Add-ons
As well as offering both MT4 and MT5 trading platforms, it’s Axi’s free NexGen suite of add-ons that sets it apart with our extensive research. Key features of NexGen that we love include:
Axi’s ECN Account is the Pro Account
Axi’s ECN account is called the Pro Account, where you can obtain the lowest spreads.
Along with having no minimum deposit, we found the account had the following key features:
Forex Panel Score
Average Spread
EUR/USD = 0.16 GBP/USD = 0.59 AUD/USD = 0.29
Trading Platforms
MT4, IG Trading Platform, L2 Dealer, ProRealTime
Minimum Deposit
$0
Why We Recommend IG Trading
IG Trading is a market maker, not a ECN broker but they made this list as they have DMA or L2 trading which is similar to ECN. To qualify for the IG DMA account you will need to be a professional trader and use either the L2 trading platform or IG WebTrader.
DMA trading is only with Forex and shares and has an average spread of 0.16 pips for EUR/USD. Retail trader will need to use their CFD account which has average spreads of 1.13 pips EUR/USD.
Pros & Cons
Broker Details
IG Trading Offers DMA Trading with its L2 Dealer Platform
With over 239,000 retail clients worldwide and 47 years of experience in the FX space, IG Trading is the largest ECN broker in Australia. Currently, IG Trading is processing on average USD 6.8 billion of daily transactions and 7 million orders per month, with 93 different currency pairs.
Our team found the following top features for IG Trading:
IG Trading DMA Trading Account
We found a variety of advantages of IG Trading’s Forex direct account, which mimics the ECN/STP execution models, highlighted below:
IG Trading’s Top Pricing Execution and Liquidity Providers
IG Trading uses a DMA (Direct Market Access) model to execute a client’s transactions, which means orders are submitted directly to the Interbank market. We like this model as it gives clients the best available prices and execution without any interference.
IG Trading’s liquidity provider (LP) network is impressive, comprising 12 tier-1 banks and tier-2 banks along with leading market makers and Multilateral Trading Facilities (‘MTFs’). We also found IG Trading transparent about its info, with its execution venues openly published within the Order Execution Policy.
IG Trading prices are aggregated from the following top-tier financial institutions: Bank of America, Barclays, Citadel, Citibank, EBS, Goldman Sachs, Hotspot, HSBC, JP Morgan, Morgan Stanley, UBS, and XTX.
Forex Panel Score
Average Spread
EUR/USD = 0.1 GBP/USD = 0.3 AUD/USD = 0.2
Trading Platforms
MT4, MT5, ThinkTrader
Minimum Deposit
$0
Why We Recommend ThinkMarkets
We particularly value ThinkMarkets for its affordability, with a low commission of just AU$3.50 and RAW spreads starting from only 0.1 pips for EUR/USD. All of this makes it a great beginner friendly platform. It also supports both MetaTrader 4 and the newer MetaTrader 5 soyou can choose whichever one they’re more comfortable with.
You can also opt for the in-house ThinkTrader platform which is available on both web and mobile. If you do use this platform, you will be ale to able to buy ASX shares and own the underlying instrument.
Pros & Cons
Broker Details
ThinkMarkets is a Great Choice for Beginner Traders
If you’re a beginner trader, one of the best forex brokers to start trading with is ThinkMarkets. ThinkMarkets provides an outstanding selection of quality educational resources and market research. We found ThinkMarkets’ best features to be:
Top Market Research and Trading Academy
Not all forex brokers welcome beginner traders who require special trading features. However, ThinkMarkets accommodates the needs of even the most demanding FX traders.
ThinkMarkets provides industry-leading education through its “Learn to Trade” section, which is available for beginner, intermediate, and advanced traders. Additional educational resources include a well-organised trading glossary library with a search function, trading guides on the most popular technical indicators and chart patterns, and free, downloadable eBooks.
ThinkMarkets also helps new traders with solid research and related resources. In-house analysts at ThinkMarkets cover all the latest market risk events both in writing and via interactive live webinars.
ThinkMarkets ECN Account – ThinkZero Account
The ThinkZero account is the ECN-like account type best suited for beginners. Along with having rich educational resources, we discovered additional key features of the ThinkZero Account:
Pepperstone is the best ECN broker in Australia because it offers four trading platforms (MT4, MT5, cTrader & TradingViewi). It also has zero minimum deposits, and its no-dealing desk model promotes spreads (avg 0.10 pips for EUR/USD on Razor Account), with industry-leading fast execution speeds (77 ms for limit orders).
Supporting ten currency pairs, Pepperstone also has a 90-day demo account, over 1200 trading products, and excellent customer support.
ECN broker provide direct access to liquidity provider or market participants without markups from the broker meaning interbank prices can be achieved. An ECN network allows buyers and sellers to find a counterparty to carry out their trade.
By using a pool of liquidity providers, an ECN network results in market participants compete for the same orders, which should mean you get better prices due to high liquidity. Such a system also results in greate transparency since prices are visible even if you do not see who you trade with.
Since ECN brokers do not markup the price or decide which market participants is your counterparty, the broker makes money through its commissions so their interest is lower spreads to encourage larger trading volumes.
| Advantages of Using an ECN Broker | ||
|---|---|---|
| Instant Trade Execution | Depth Of Markets (price transparency) | Variable Spreads |
| Automatic Data Feeds | Anonymity | Low Spreads |
| No Dealing Desk | Fast Execution | Many ECN Brokers To Choose From |
Things you should consider when choosing an ECN brokers includes regulation, currency pairs your will trade with along with other CFD instruments, spreads and commissions and broker trust. Doing the right research will ensure you pick the right broker for you.
Choose a Forex broker regulated by the Australian Securities & Investment Commission (ASIC), the local Australian financial markets regulator. This ensures the broker can legally offer trading services to Australia and the broker has the right practices in place to keep your funds safe.
Choose a broker that offers the markets and currency pairs you wish to trade in. Popular products other Forex to trade include gold, silver, indices and stocks.
Spreads and commissions are the main trading costs to look for. The lower they are, the more you will save. If you are trading with ECN then look for a RAW account since these have interbank prices. RAW accounts are sometimes called ECN accounts and don’t have a dealing desk.
To choose a trading platform, you need to decide what you want to get out of the platform. For example if you like technical analysis, TradingView is a good choice of its range of charts. If you wish to social trade, then make sure the broker has 3rd party products like Myfxbook. Popular platforms include: MetaTrader 4, MetaTrader 5, cTrader, TradingView.
ECN Broker trading fees are broken down into two main parts; spreads and commissions. Commissions are charged on most RAW accounts and are small fees attached to each trade usually calculated in round-turns per 100k traded.
Spreads are the difference between the buying and selling price of each currency pair and are incurred with each trade on both RAW and Standard accounts.
Yes, ECN brokers are beginner-friendly as they offer direct market access through a simple electronic platform with faster execution speeds to avoid slippage. ECN brokers also have tighter spreads and help beginner traders manage their trading costs more effectively.
An ECN, or Electronic Communication Network account in forex trading is an account that offers a computerised system where traders are directly linked to one another to buy and sell currencies. ECN accounts offer RAW spreads which are usually tighter than the spreads on other accounts and often charge an additional minimal commission fee.
IC Markets has the lowest spreads of any ECN broker with an average of 0.02 pips on EUR/USD with their Raw account.
As shown in the module below using data collected, IC Markets compares very favourably against other notable brokers such as Pepperstone, Axi, BlackBull Markets, and TMGM.
|
RAW Account Spread Comparison
|
|||||
|---|---|---|---|---|---|
|
|
0.06 | 0.27 | 0.23 | 0.42 | 0.59 |
|
0.02 | 0.17 | 0.50 | 0.27 | 0.30 |
|
|
0.10 | 0.20 | 0.60 | 0.40 | 1.00 |
|
0.02 | 0.05 | 0.36 | 0.19 | 0.23 |
|
0.10 | N/A | N/A | N/A | N/A |
|
|
0.30 | 0.50 | 0.60 | 0.50 | 0.50 |
|
|
0.17 | 0.30 | N/A | 0.54 | 0.68 |
|
|
0.30 | 0.40 | N/A | 0.50 | 0.50 |
|
|
0.44 | 0.42 | 0.50 | 0.40 | 0.30 |
|
|
0.20 | 0.40 | 0.60 | 0.50 | 0.70 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Yes, ECN brokers are good for copy trading as they offer tight spreads, fast execution speeds, and a wide range of signals to choose from. Signals are the traders you can copy from while the trader doing the copying is known as a copier.
Copy trading is one of the easiest ways to trade since you can take advantage of the knowledge of other more skillful traders than yourself. A good ECN network completements copy trading as low spreads reduce you cost when copying the traders of the Signal provider.
All ECN brokers operating in Australia need to be licensed and regulated by the Australian Securities & Investment Commission (ASIC) to protect investor interests. Requirements include that brokers:
Yes, ECN forex brokers have slippage and are vulnerable to requotes. Slippage occurs when there is a difference in the buy or sell price to the order price it was executed at and can be both positive and negative. Guaranteed stop-loss orders help minimise slippage.
You can use MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader with an ECN broker. Each different trading platform offers different features with MetaTrader 4 being the most popular due to its fast execution speeds and user-friendly functionality.
The minimum deposit requirements vary from broker to broker, some brokers have a $0 minimum requirement. You will need enough funds in your trading account to cover the minimum margin requirement to open a trading position. The larger your trade or the higher your leverage, the more funds you will need.
ECN accounts or RAW spread accounts generally have a lower spread as commission fees are applied separately to the spread. You pay a commission for each lot to open and again to close each trade you make.
Standard accounts include the broker’s compensation fee (aka commission) in the spread so their spreads tend to be slightly wider than with ECN accounts.
ECN brokers allow traders direct access to the interbank forex markets allowing traders to automatically match with buyers and sellers without the need for an intermediary.
Brokers that are market makers, play the role of the counterparty to any trade you make. For this reason, they are sometimes called b-book brokers. Market makers set the buy and sell prices
There is no difference between an ECN and a no-dealing desk broker as they are the same.
Straight ECN brokers have typically faster execution speeds and transparency but charge higher commission fees. ECN/STP brokers have inconsistent processing times and reduced order routing transparency but they offer more affordable pricing.
Which type of broker is more suited to you depends on your trading experience. Beginner traders would be best suited with a straight ECN broker.
ECN is excellent for scaplers as they usually have tighter spreads and lower commissions as well as faster execution speeds which is essential for scalpers looking to make faster profits. The main thing to keep in mind is that spreads are variable not fixed, meaning there are slippage risks.
Yes, you can use automated trading with ECN brokers and of these broker allow automation so you can use bots to save time, reduce emotion, and improve your trading performance through smart trading strategies. To get started with automated trading select an ECN broker that is reliable, reputable and has lows spreads.
Yes, forex brokers allow micro-lot trading which is trading in lots of 1000 as opposed to a mini lot of 10,000 or a standard lot of 100,000.
ECN brokers that promise unrealistically high profits are an immediate red flag when looking for fake ECN brokers. Lack of transparency, no variable spreads, and no market maker models are also ways to spot fraudsters.
After comparing the best Australian ECN brokers above, each broker has aspects that stand out from the rest. Depending on your trading experience, the global foreign exchange landscape can be tough to navigate, so we’re here to help.
As an Australian, it’s recommended you avoid trading with an offshore-regulated broker that is not regulated in Australia. Instead, we encourage you to choose an ECN broker regulated by the Australian Securities and Investments Commission (ASIC). It’s considered a higher risk to go offshore simply to seek a broker with the highest leverage. Our highest leverage forex broker Australia page shows the best leverage within the ASIC regulation guidelines. Before you make a final decision on the best forex or CFD broker for you, you can start by opening a demo account and going over each characteristic yourself to see if it suits your style. You may also want to consider choosing a broker with negative balance protection for additional risk management.
Broker reviews help find the best brokers, but only you can make the final decision. You can also view our best global brokers with ECN accounts which consider providers regulated by other authorities, including the FCA, MAS, and the FSCA in South Africa.
Disclaimer risk warning: Brokerages that provide financial services, especially in CFD trading and derivatives incur a high level of risk for you as a trader. Make sure to always choose a broker that is regulated by your local authority for the best protection.
Ask an Expert
are all of these brokers safely regulated in Australia?
Yes, all the brokers on this list are regulated by ASIC.
What are the disadvantages of ECN?
Disadvantages of using an ECN include the need to pay commission in addition to the spread however since spreads are lower than with a standard account, the overall cost will be lower. You are also reliant on the broker using competitive liquidity providers ECN Brokers often also require a higher minimum deposit requirement as they want to attract serious traders and in some cases will not accept small lot sizes.
Is ECN better than a standard account?
Firstly, standard account can use ECN execution but is often understood to refer to a RAW spread account. RAW spread accounts tends to have lower costs than a Standard account and are often but not always necessarily better.