To help choose an ECN forex broker, a spread and ECN forex platform comparison was completed. This led to a list of the top ECN brokers that offer straight-through processing (STP) allowing direct access to liquidity markets.
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Here is our list of the best ECN forex brokers.
| Broker Review | 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 | Visit Broker |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Read review ›
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98 |
SCB, ASIC FCA, CySEC |
1.10 | 1.40 | 1.20 | 0.10 | 0.30 | 0.20 | $3.50 |
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77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
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Read review ›
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85 |
ASIC, FSA-S CySEC |
0.62 | 0.83 | 0.77 | 0.02 | 0.23 | 0.17 | $3.50 |
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134ms | $0 | 61+ | 18+ | 30:1 | 500:1 |
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Read review ›
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80 |
ASIC,CySEC FSCA,FSA-S,FSC-M |
1.1 | 1.3 | 1.3 | 0.10 | 0.20 | 0.20 | $3.00 |
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225ms | $100 | 70+ | 10+ | 30:1 | 500:1 |
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Read review ›
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61 |
FCA, FSCA CySEC, SCB, FSCM |
1.32 | 1.7 | 1.95 | 0.32 | 0.37 | 0.51 | $3.50 |
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151ms | $0 | 69+ | 30+ | 30:1 | 200:1 |
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Read review ›
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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 |
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174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
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Read review ›
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46 |
FCA, FSCA, CYSEC DFSA,CMA,FSA |
1.2 | 1.9 | 1.8 | 0.1 | 0.3 | 0.7 | $3.00 |
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$0 | 38+ | 19+ |
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Read review ›
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67 |
ASIC,FCA ,DFSA,FMA |
1.2 | 1.3 | 1.3 | 0.44 | 0.85 | 0.42 | $3.50 |
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90ms | $0 | 72+ | 11+ | 30:1 | 400:1 |
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A broker that offers ECN execution has no dealing desk and usually uses STP (straight-through processing) to provide direct access to liquidity markets. This means you will often obtain the fastest speeds and lowest spreads, compared to market-maker brokers. After much analysis, this list details the top ECN forex brokers based on a range of trading considerations.
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
We recommend Pepperstone as the best ECN broker overall. They offer a solid combination of tight RAW spreads, fast execution speeds, a range of markets, and a choice of trading platforms, which is why we scored them 98/100.
Pepperstone impressed us with its execution speeds in our tests, achieving an average of 77 ms on the MetaTrader 4 platform. Based on our tests, this is almost 50% faster than the industry average of 129ms, which helps reduce slippage.
Plus, there is no minimum deposit, so you are not forced to deposit more than you wish to trade with.
Pros & Cons
Broker Details
The Best ECN Broker
The best MT4 ECN Broker for UAE traders is Pepperstone. Combined with ECN style execution, low spreads and commissions, Pepperstone offers the best solution for the MT4 platform. Choosing the Pepperstone Razor account provides an excellent foundation for you to get the most from the MT4 platform. With this account, you get:
Note: True ECN is defined as trading with no dealing desk or human intervention.
Pepperstone is regulated by the Financial Conduct Authority (FCA) which makes it a broker that can be trusted by traders from the United Kingdom. Being regulated by the FCA means Pepperstone must meet strict regulatory guidelines such as training standards, avoid conflict of interest and the requirements for customers’ deposits to be segregated in a separate account. The broker uses the highly respected auditing firm, Ernst & Young, to ensure Pepperstone processes and records are compliant with FCA standards.
Pepperstone is one of the top 10 global forex brokers and is a well-recognised broker in the United Kingdom where they have a strong presence.
Pepperstone Spread Analysis
Pepperstone is a no-dealing desk (NDD) broker which allows them to offer low trading fees. The Razor trading account offers spreads as low as 0.0 pips for the EUR/USD currency pair. These ECN-like spreads are on par with other financial institutions’ intra-bank rates, which most retail forex brokers are unable to achieve.
The below table highlights the key features of the main trading accounts Pepperstone offers. The Razor account has spreads starting from as low as 0.0 pips, averages around 0.3 pips, and has a commission for each lot you trade. The standard account, on the other hand, adds one pip to the spread in place of commissions.
The below spreads table compares the average and typical spreads brokers provide on their website and are reviewed on a monthly basis. The table below shows the average spreads against a number of other brokers for the ECN commission accounts. You will notice Pepperstone spreads stand up well across the board against other brokers.
ECN Commission Spreads – Pepperstone’s Razor Account
Pepperstone’s Razor Account is one of the best ECN-style accounts, offering minimum spreads from 0.0 pips plus commission fees. This account type is a great option if you are a more experienced trader looking at executing automated trading strategies with Expert Advisors, along with scalping and day trading. The average spreads below show Pepperstone’s competitiveness compared to other brokers offering a similar account type. The broker provides access to some of the tightest average spreads currently available to retail traders.
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Commission ECN Spread Comparison
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|---|---|---|---|---|---|
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0.10 | 0.20 | 0.40 | 1.00 | 0.60 |
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0.10 | 0.20 | 0.30 | 0.50 | 0.30 |
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0.20 | 0.20 | 0.40 | N/A | 0.30 |
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0.44 | 0.42 | 0.40 | 0.30 | 0.83 |
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0.17 | 0.30 | 0.54 | 0.68 | N/A |
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0.20 | 0.40 | 0.50 | 0.70 | 0.70 |
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0.10 | 0.50 | 0.60 | 0.80 | 1.10 |
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n/a | 0.50 | 0.60 | 0.40 | 0.30 |
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0.44 | 1.23 | 1.13 | 1.23 | 1.41 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 09/01/2024
No Commission Spreads – Pepperstone’s Standard Account
If you prefer a simple fee structure and account type, Pepperstone’s standard account type is commission-free while still offering tight spreads. The account is suited for beginner traders looking to get into the market and want a simple trading cost structure. With minimum spreads of 0.6, Pepperstone provides one of the best no-commission trading accounts. As shown below, few brokers can compete with Pepperstone’s commission-free pricing.
Pepperstone also offers Islamic accounts for traders that need to comply with Sharia Law.
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1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
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0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
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1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
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1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
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1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
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1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 09/01/2024
Pepperstone Trading Costs
Pepperstone offers competitive trading costs across 180 financial markets. Pepperstone’s clients can expect an average transaction cost of approximately $5.36 (assuming the EUR/USD spread remains constant at 0.16 pips) for each standard lot you trade.
Calculate Your Trading Costs Below
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Compared to other ECN forex brokers, retail traders can expect total trading costs of $7.90 with Axi, $7.70 with IG, and respectively $8.0 with FXTM. When put side by side with other ECN brokers, forex trading with Pepperstone comes with an additional saving cost of almost 40%.
The cost related to trading forex and CFD trading can be further reduced by up to 15% through Pepperstone Active Trader Program. Typically, this translates into saving costs between $200 and $500 in monthly rebates. However, the Active Trader program is catered for high-volume traders and scalping trading strategies.
Fastest Trade Execution Speed
Pepperstone is the best forex broker in the UAE when it comes to trade execution speeds. Their exceptional ECN-like trading speeds of 60 milliseconds are based on two key features:
1) A direct optical fibre connection to trading servers
The sheer distance between US liquidity hubs can be a disadvantage for UAE traders. Pepperstone offset this through a direct optic fibre connection from London to New York. The end result is a reduction in up to 10x times latency for the UAE traders.
2) Usage Of Equinix Servers
Just having a fast connection isn’t enough if the server has a poor response rate. To overcome this, Pepperstone partners with Equinix who have servers near Wall Street in New York, which is one of the world’s largest and most important financial centres. Using the Equinix data centre means the broker is as close as possible to most of the currency exchange firms and banks means Pepperstone can achieve the best possible latency.
Using a third-party MT4 script to test the market order execution speed, the latency with Pepperstone is on average 85 milliseconds. See the full market order execution speed ranking below:
Verdict On Pepperstone For UAE Traders
Overall, we found Pepperstone Limited offered the best ECN trading conditions for UAE traders. The broker also topped the list of the Best Forex Brokers In Australia in our reviews thanks to the broker’s 2nd fastest execution speed (published and tested), lowest standard account spreads, and award-winning customer service. These are the elements critical for ECN trading.
Forex Panel Score
Average Spread
EUR/USD = 0.02
GBP/USD = 0.23
AUD/USD = 0.17
Trading Platforms
MT4, MT5, cTrader, TradingView
Minimum Deposit
$200
Why We Recommend IC Markets
We recommend IC Markets as the best Dubai ECN broker because of its low average RAW spreads, the lowest we’ve tested at just 0.16 pips across the top 5 major pairs. To put things in perspective, the industry average in our tests was 0.44 pips, so IC Markets excelled in this test.
What we think is excellent about IC Markets is that it offers a range of copy trading tools like ZuluTrade, allowing you to mirror the strategies of experienced traders. Your copy trading costs will be lower as you’ll benefit from IC Markets’ spreads.
Pros & Cons
Broker Details
The Broker That Has Low ECN Spreads
Second, on our list of best MT4 ECN platforms is one of the top UAE no dealing desk brokers IC Markets due to their low spreads and costs.
IC Markets was selected as the best Dubai-based ECN broker based on these key factors:
IC Markets has a major focus on Forex trading however traders can also choose from CFDs on Futures, Stock Indices, Shares, Bonds and Commodities. The company offers access to a true ECN trading environment via three powerful trading platforms – MetaTrader 4, MetaTrader 5, cTrader and TradingView.
International Capital Markets Pty Ltd Australia complies with stringent regulatory standards set by the Australian Securities and Investments Commission (ASIC) which makes it a safe and trustworthy broker for Australian traders. IC Markets (EU) Ltd – regulated by the Cyprus Securities and Exchange Commission (CySEC) under the CIF Licence No 362/18.
IC Markets ECN Trading Spreads
As a true ECN broker, IC Markets matches the trades of its clients electronically and pass on trade orders to liquidity providers. This system means it operates a no dealing desk NDD execution model.
Since the broker uses a diverse liquidity mix, it is able to provide Forex traders with the lowest possible spreads – as low as 0.0 pips on some major currency pairs through its MetaTrader 4 ECN account (Raw Spread Account). IC Markets offers one of the lowest spreads on foreign exchange pairs such as EUR/USD in the world (0.1 pips) and is also able to offer tight spreads across its entire product list.
The table below demonstrates the minimum and the average spread on five major currency pairs through its Raw Spread and Standard trading accounts.
| Raw Spread Account (Minimum) | Raw Spread Account (Average) | Standard Spread Account (Minimum) | Standard Spread Account (Average) | |
|---|---|---|---|---|
| EUR/USD | 0.0 pips | 0.1 pips | 1.0 pips | 1.1 pips |
| GBP/USD | 0.0 pips | 0.4 pips | 1.0 pips | 1.4 pips |
| USD/JPY | 0.0 pips | 0.2 pips | 1.0 pips | 1.2 pips |
| AUD/USD | 0.0 pips | 0.2 pips | 1.0 pips | 1.2 pips |
| USD/CAD | 0.0 pips | 0.5 pips | 1.0 pips | 1.5 pips |
IC Markets Total Trading Costs
IC Markets will charge a small commission of $7.0 per round turn for 1 Standard Lot traded on its Raw Spread account, while Forex trading on its Standard account is associated with no commissions – just an all-inclusive spread.
The Raw Spread account supports 10 base currencies, including EUR, USD, AUD, GBP, SGD, NZD, JPY, CHF, HKD and CAD. Depending on the base account currency selected and trade volume (Micro or Standard Lots), IC Markets will charge AUD 3.50 per side (AUD 7.0 round-turn)on its MetaTrader 4 Raw Spread account.
| AUD Account Australian Dollar |
USD Account US Dollar |
EUR Account Euro |
GBP Account Pound Sterling |
|
|---|---|---|---|---|
| Micro Lot Commission (0.01 or 1,000 base currency) |
AUD 0.035 (AUD 0.07 round turn) |
USD 0.035 (USD 0.07 round turn) |
EUR 0.0275 (EUR 0.06 round turn) |
GBP 0.025 (GBP 0.05 round turn) |
| Standard Lot Commission (1 or 100,000 base currency) |
AUD 3.50 (AUD 7.0 round turn) |
USD 3.50 (USD 7.0 round turn) |
EUR 2.75 (EUR 5.5 round turn) |
GBP 2.50 (GBP 5.0 round turn) |
At IC Markets, the average transaction cost for 100,000 units traded is USD 4.6 (assuming the EUR/USD spread remains constant at 0.1 pips).
IC Markets Order Execution Speed
As far as order execution speed is concerned, the broker’s MetaTrader 4 server is located in the Equinix NY4 data centre, ensuring ultra-low latency and an average order execution speed of 36.5 ms for retail clients.
We tested the latency for limit orders using our MetaTrader 4 terminal to calculate the time between sending the order and orders being processed by IC Markets’ servers. The results can be viewed below:
Due to deep liquidity and no dealing desk execution with no requotes, IC Markets’ MT4 ECN account (Raw Spread) offers one of the best trading conditions for retail traders who employ scalping strategies. The Raw Spread account may also suit the needs of day traders as well as of those who use Expert Advisors.
Verdict On IC Markets MT4 Offering
Overall, IC Markets offers the lowest spreads along with true ECN trading conditions. The minimum deposit required is $200, while the maximum leverage allowed for Forex and Metals is 1:30 on the Standard account and Raw Spread account types. Another advantage we should highlight is that the MT4 platform allows position hedging because of no “first in first out” rule with IC Markets. Last but not least, this Australian broker offers a free demo account, which is configured to support all account types, all trading platforms and all 232 financial instruments available.
Forex Panel Score
Average Spread
EUR/USD = 0.1
GBP/USD = 0.2
AUD/USD = 0.1
Trading Platforms
MT4, MT5, cTrader, TradingView
Minimum Deposit
$100
Why We Recommend FP Markets
FP Markets is our top choice for zero-spread ECN brokers after scoring an incredibly high uptime on our tests. We were impressed that FP Markets offered 0.0 pips on EUR/USD 97.83% of the time, surpassing the industry’s 94% average.
When spreads aren’t at zero, they still impress with an average of only 0.1 pips on EUR/USD, significantly lower than the usual 0.22 pips. With their RAW account, you can get these spreads on all platforms available, including MetaTrader 4, MT5, cTrader and TradingView.
Pros & Cons
Broker Details
The Top Zero Spread ECN Broker
Third, on our list of best MT4 ECN platforms by spreads, costs and speed is leading CFDs provider FP Markets. FP Markets was selected as the top zero spread ECN broker based on these key factors:
With 15 years of business history, FP Markets is one of the most reputable ECN brokers worldwide. FP Markets is regulated across multiple jurisdictions and is the parent company of:
FP Markets Raw Pricing
With FP Markets, retail clients can access institutional-grade liquidity with no dealing desk and no requotes.
Due to its vast pool of liquidity providers, the brokerage is able to offer the lowest possible Forex spreads, starting from 0.0 pips, on its MetaTrader 4 software, accessed through its Raw trading account type. The company offers more than 60 major, minor and exotic Forex pairs with the minimum spreads on some of the most popular pairs being:
During peak market hours the EUR/USD spread remains at 0.0 pips 55.87% of the time – according to price data compiled from Nov 2020 (only available through the Raw Spread account).
FP Markets Trading Costs
Spot Metals and Forex trading on FP Markets’ MT4 ECN account (Raw) is associated with a small commission – $6.0 per round turn for every 1 Standard Lot traded, while the minimum deposit required is AUD 100 or currency equivalent.
| FXTM | FP Markets | HotForex | Pepperstone | ThinkMarkets | FxPro | |
|---|---|---|---|---|---|---|
| Commission (per-side) | USD 2.0 | USD 3.0 | USD 3.0 | USD 3.5 | USD 3.5 | USD 4.5 |
| Commission (round-turn) | USD 4.0 | USD 6.0 | USD 6.0 | USD 7.0 | USD 7.0 | USD 9.0 |
The maximum leverage allowed for Forex and Spot Metals is 1:500 via the broker’s offshore subsidiary and regulation, and 1:30 in Australia and Europe. Meanwhile, trading CFDs on Commodities and Stock Indices on the Raw account does not incur any trading fees for clients.
At FP Markets, the average transaction cost for 100,000 units traded is USD 3.9 (assuming the EUR/USD spread remains constant at 0.09 pips).
FP Markets Ultra-Fast Order Execution
FP Markets operates a pricing model based on Electronic Communication Network (ECN) technology, which ensures deep liquidity, the highest level of price transparency, ultra-tight spreads as well as exceptional order execution with minimal slippage.
Since FP Markets’ MT4 server is located at the Equinix NY4 data centre, the broker is able to ensure ultra-low latency and ultra-fast order execution (37 ms) for its clients. FP Markets was awarded four consecutive times as the Best for Quality of Trade Execution 2019 by Investment Trends.
Another notable advantage of the broker’s MT4 platform is that there are no restrictions on limit orders, which suits perfectly trading styles such as scalping as well as trading strategies based on the use of Expert Advisors (EAs).
Along with the desktop version, FP Markets’ MT4 is also available as a web-based application (Web Trader) and as a mobile app for iOS- and Android-based devices.
Verdict On The Zero Spread ECN Forex Brokers
Overall, FP Markets is the most trusted forex brokers with zero spread trading accounts. Similar to other regulated CFD and Forex brokers, FP Markets warns that CFD trading through retail investor accounts carries a high risk of losing capital rapidly, as leverage is used. Consequently, before starting to operate with such complex instruments, retail traders need to be fully aware of how CFDs work!
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
Minimum Deposit
$0
Why We Recommend IG Group
We recommend IG as the most trusted Forex broker because it has earned a solid reputation over 30+ years and is backed by strict regulation in multiple jurisdictions, such as the DFSA, FCA, ASIC, and MAS.
We like brokers with multiple regulators, as this shows they take your protections seriously and are willing to work with multiple jurisdictions to obtain authorisation.
With access to over 13,000+ markets, IG offers one of the widest ranges of products, allowing you to trade virtually any asset on the major exchanges.
Pros & Cons
Broker Details
The Most Trusted Forex Broker
Fifth, on our list of best MT4 ECN platforms by spreads, costs and speed is the world’s biggest CFD provider IG. IG was selected as one of the most credible forex brokers in the industry based on these key factors:
Founded in 1974 and having more than 239,000 clients worldwide, IG Group Holdings Plc is one of the most reputable Forex brokers with solid regulation and business operations in 16 countries across 5 continents. IG is authorized and regulated in the following jurisdictions:
IG Spread Analysis
One way to trade Forex with IG is over-the-counter, via Contracts for Difference, with no commissions. Clients will only pay the spread. IG offers variable spreads on its Forex CFDs, which depend on liquidity and time of the day.
When it comes to CFD trading with OTC Forex Brokers like IG, we should note that the company will act as a market maker. In other words, every time clients execute a trade, they will be dealing directly with the brokerage.
Retail clients are able to choose from more than 60 major, minor and exotic currency pairs, with spreads on:
The minimum and average spreads, as well as the margin requirements for the most actively traded Forex pairs on IG’s MT4 platform, are presented in the table below.
We should note that the average spreads have been calculated over the 12 weeks ending May 29th 2020.
IG Trade Cost
When holding Forex and Spot Metals trades overnight, clients will incur overnight funding costs. In this case, the cost will equal the tom-next rate plus a small charge.
When trading CFDs on Shares and Stock Indices, the overnight funding fee includes IG’s admin fee plus or minus the relevant interbank rate (depending on whether it is a long or a short position) for the currency in which the trading instrument is denominated.
For trades in Commodity CFDs and Futures CFDs, clients will not incur overnight funding charges.
Additionally, retail traders can reduce the cost of forex trading through cash rebates. Traders can save up to $10 for each notional million traded contingent on trading volume thresholds.
At IG, the average transaction cost for 100,000 units traded is USD 6.0 (assuming the EUR/USD spread remains constant at 0.6 pips).
IG Order Execution Speed
As for order execution speed, IG’s pricing technology allows the broker to execute more than 98% of its clients’ market orders within 0.014 seconds on the MT4 platform. IG’s robust execution engine can boost the following performances:
Overall, the IG order management system has saved clients over GBP 55 million since Nov 2013.
Verdict On IG For Trust Seeking Traders
Overall, IG is considered to be a safe ECN broker. Another way to trade Forex with IG is via direct market access (Forex Direct) through the broker’s L2 Dealer platform. This service is intended for professional clients and grants them access to the physical market with no dealing desk intervention. Clients are able to access the best bid and offer prices available for a particular instrument but will be charged a commission based on trade volume. Forex Direct keeps average spreads tight because pricing is provided by top financial institutions and exchanges.
Forex Panel Score
Average Spread
EUR/USD = 0.2
GBP/USD = 0.2
AUD/USD = 0.5
Trading Platforms
MT4, MT5, cTrader, FxPro Trading Platform
Minimum Deposit
$100
Why We Recommend FxPro
FxPro is our top choice for a good STP Forex broker that provides a decent range of markets and tight spreads. We like that the broker provides Direct Market Access, allowing you to see the order books from the liquidity provider, with platforms like cTrader can take advantage of this.
In particular, we think FxPro offers the best service for the cTrader platform, averaging 0.32 pips and low commissions of $3.00 per lot. We found that this commission is almost 50 cents cheaper than its competitors, who charge an average of $3.48 per lot.
Pros & Cons
Broker Details
A Good STP Forex Broker
Sixth, on our list of best MT4 ECN platforms by spreads, costs and speed is the no dealing desk NDD broker FxPro. FxPro was selected as the best straight-through processing STP forex broker based on these key factors:
Founded in 2006 and headquartered in the United Kingdom, FxPro is an STP broker, offering CFDs on Forex pairs, Equities, Spot Indices, Commodity Futures, Spot Metals and Spot Energies on three popular trading platforms (MetaTrader 4, MetaTrader 5).
FxPro is authorized and regulated in multiple jurisdictions across the globe, including:
FxPro Spread Analysis
Along with NDD execution, retail traders can take advantage of fixed Forex spreads on FxPro’s MT4 account. The STP broker will have the spread on 7 popular currency pairs fixed, depending on specific time intervals during the trading session. Fixed spreads are offered on EUR/GBP, EUR/JPY, EUR/USD, GBP/JPY, GBP/USD, USD/CAD, and USD/JPY.
| MT4 Floating Spreads (Minimum) | MT4 Floating Spreads (Average) | cTrader Spreads Minimum (Average) | MT5 Floating Spreads Minimum (Average) | |
|---|---|---|---|---|
| EUR/USD | 1.5 pips | 1.71 pips | 0.1 pips (0.37 pips) | 1.4 pips (1.51 pips) |
| GBP/USD | 1.6 pips | 2.39 pips | 0.2 pips (1.02 pips) | 1.8 pips (2.52 pips) |
| USD/JPY | 1.2 pips | 1.45 pips | 0.1 pips (0.41 pips) | 1.4 pips (1.57 pips) |
| AUD/USD | 1.7 pips | 2.09 pips | 0.6 pips (0.87 pips) | 1.8 pips (2.18 pips) |
| USD/CAD | 1.7 pips | 2.35 pips | 0.4 pips (0.88 pips) | 1.8 pips (2.45 pips) |
However, during illiquid times and news events, all market participants can expect the EUR/USD spread to reach 2.7 pips.
FxPro Trade Cost
At FxPro, the total trading cost incurred on all forex transactions depends on three factors:
Investors can incur a total trading cost of $15 per side on the traditional broker-spread model. By comparison, on the less-expensive interbank spread plus commission model, investors can incur a total trading cost of $5.5 per side.
The brokerage will charge no commissions for CFD trading on its MT4 and MT5 account types.
At FxPro, the average transaction cost for 100,000 units traded is USD 15.0 (assuming the EUR/USD spread remains constant at 1.5 pips).
FxPro Order Execution Speed
FxPro provides execution of client trade orders with no dealing desk intervention, which, in turn, ensures access to diverse liquidity and ultra-high execution speeds (most trade orders are filled in less than 11.06 ms).
According to the broker’s statistics, in 2019, 99.32% of all instant orders were executed with no requotes, while 9% of orders experienced positive slippage.
At FxPro, all client orders are processed through Equinix Data centres – LD5 in London and AM4 in Amsterdam, where FxPro has co-located servers. FxPro uses its own proprietary aggregator Quotix to aggregate bids and offers from top-tier banks.
Verdict On The Most Trusted STP Brokers
Overall, FxPro is a trusted Straight Through Processing broker, but when we factor in the variable spreads they are relatively high when compared to other legitimate STP brokers. For scalpers, it will be extremely hard to overcome the total trading costs. For more inquiries, you can contact FxPro’s 5-star customer support by clicking the button below.
Forex Panel Score
Average Spread
EUR/USD = 0.6
GBP/USD = 0.7
AUD/USD = 0.1
Trading Platforms
MT4, MT5
Minimum Deposit
$0
Why We Recommend HF Markets
We recommend HF Markets as a great low-spread ECN broker because they offer spreads from just 0.1 pips, 50% lower than the industry average of 0.22 pips. This lowers your overall trading costs, which is a big plus in our books.
What stood out for us is that HF Markets provides excellent trading tools for automating your trades with access to the MetaTrader 4 platform and a VPS service.
Pros & Cons
Broker Details
A Solide Low Fee ECN Broker
Seventh, on our list of best MT4 ECN platforms by spreads, costs and speed is HotForex. HotForex was selected for offering one of the best ECN forex trading conditions in the industry based on these key factors:
HF Markets is a multi-regulated, award-wining online broker, which provides Forex trading and CFD trading services to retail and institutional clients in a number of countries globally. HotForex follows strict regulatory guidelines in the following jurisdictions:
HotForex Spread Analysis
HotForex offers good conditions for low-cost ECN-style Forex trading on its ZERO Spread trading account, which may suit high-volume traders, scalpers and traders who use Expert Advisors.
To start trading on this ECN account, retail clients need to deposit as little as $200. Since pricing is derived from a pool of top liquidity providers, the broker offers raw spreads with no hidden markups. For example, major pairs such as EUR/USD can be traded with a minimum spread of 0.0 pips, while spreads on minors and exotics (0.7 pips on EUR/GBP) are also kept ultra-tight.
Overall, HF Markets’ ECN account can deliver average spreads of 0.1 pips on EUR/USD.
On the other hand, the variable spread model offered through HotForex Premium account can boost an average EUR/USD spreads of 1.3 pips. Find out how HotForex stack up against the competition below (based on data sourced by HotForex):
HotForex Trade Cost
Similar to other leading ECN brokers, HF Markets will charge a small commission of $6.0 per round turn, for every 1 Standard Lot traded on its MetaTrader 4 platform. This is valid for major currency pairs such as AUD/USD, EUR/USD, GBP/USD, etc.
Additionally, trading minor and exotic Forex pairs such as AUD/CAD, EUR/CHF, USD/SEK, USD/PLN among others are associated with a commission of $8.0 per round turn for 1 Standard Lot.
At HotForex, the average transaction cost for 100,000 units traded is USD 4.0 (assuming the EUR/USD spread remains constant at 0.1 pips).
HotForex Order Execution Speed
HotForex passes on client orders to third-party venues for their execution. Unlike market maker brokers, HF strives to offer the best order execution policy within the limitations of modern-day technology. While HF Markets doesn’t advertise on its website their order execution speed, according to a ping test done by our team of experts we verified a 145 ms average speed.
Verdict On Hotforex Low Spreads
Overall, HotForex offers good ECN accounts with low spreads, especially on EUR/USD. The good selection of trading markets (8 asset classes) coupled with competitive trade costs and spreads with no markups makes HotForex a good pick. A demo account can be opened by simply clicking the button below.
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 is our best MT4 ECN platform because it provides an excellent trading environment that MetaTrader 4 can take advantage of. It has low RAW spreads and cheap commission at $3.00 per lot traded, which is 48 cents less than the industry average.
We like that they offer a range of extra trading tools, like Autochartist and Trading Central. These are two excellent market scanner tools that send alerts when chart patterns form so you can review them and decide whether to trade them.
This helps speed up finding new trading ideas and is automated in the background, which is helpful if you are a beginner trader.
Pros & Cons
Broker Details
The Broker That Has A Great MT4 ECN Platform
Last on our list of best MT4 ECN platforms by spreads, costs and speed is the Dubai based brokerage trading firm Axi. Axi was selected for offering the best MT4 ECN platform based on these key factors:
Axi is a multi-regulated ECN brokerage, licensed in the United Kingdom, Australia and Dubai, where it falls under the regulation of the FCA, ASIC and respectively DFSA.
Axi Spread Analysis
Axi supplies its Forex quotes directly from a network of +20 top-tier liquidity providers (LP). The extensive network of LPs allows Axi to offer reliable low spreads across its CFD product list.
Axi price engine aggregates in real-time price quotes from its LPs and identifies the best bid and the best offer prices available. Since the broker’s pricing can reflect even the tiniest price changes in real-time, this brings its clients very close to institutional-grade pricing.
The broker’s MT4 platform allows access to over 140 financial instruments, which can be traded with ultra-tight spreads on Axi’s Pro Account. In times of high liquidity, spreads on the most popular Forex pairs can reach 0.0 pips. The average spreads offered on Forex majors are:
Axi Trade Costs
In exchange for ECN trading conditions, Axi will charge a small commission of 7.0 per round turn for 100,000 units traded on its Pro account type. On the other hand, there are no commissions on the Standard Account, but spreads will be wider. Axi’s commission rate of $3.5 per side per 100,000 units traded is in line with industry standards.
When we take into account the total transaction cost (spread + commission), Axi’s charges are on par with other respected brokers, maybe slightly higher.
At Axi, the average transaction cost for 100,000 units traded is USD 5.5 (assuming the EUR/USD spread remains constant at 0.2 pips).
Axi Order Execution Speed
Axi’s MT4 software solution uses an ECN bridge to ensure considerable latency reduction. This translates into less negative slippage and subsequently lower trading costs compared to market maker brokers. The cutting edge technology offered by Axi allows it to deliver fast order execution.
Our team of experts has put to the test how fast the broker is executing your order and found the following performance:
Verdict On AxiTrader’s MT4 Performance
With all this taken into account, we consider Axi’s MT4 software as one of the best ECN platforms on the market. You can trade with an award-winning MT4 forex broker that handles over $100 billion in average monthly trading volume from over 40,000 traders. Claim your free Axi demo account with $50,000 in paper money by clicking the button below.
ECN brokers offer direct access to liquidity providers or market participants, offering you market spreads very close to interbank prices. An ECN network facilitates the matching of buyers and sellers, ensuring efficient execution of trades.
The pooling of liquidity providers within an ECN network encourages competition among market participants for the same orders. This competition often leads to more favourable prices due to multiple parties bidding and offering. Additionally, this system enhances transparency in pricing, although the identities of the trading parties remain anonymous.
Since ECN brokers do not add markups to prices or select the market participants with whom you trade, their revenue is derived from commissions. This model incentivises brokers to offer lower spreads, aiming to boost trading volumes.
ADVANTAGES OF USING AN ECN BROKER
When selecting an ECN broker, you should consider factors such as regulatory compliance, the variety of tradable currency pairs and CFD instruments, as well as spreads, commissions, and the broker’s reputation. Here are the main things to look for:
Opt for a broker regulated by a reputable authority to ensure legal trading services and the safety of your funds. Globally highly respected regulators include ASIC in Australia, the UK’s Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC).
Your broker should offer a wide range of markets and currency pairs that match your trading interests. Besides Forex, look for opportunities to trade other assets such as gold, silver, various indices, and stocks, to further enhance your trading opportunities.
Minimising your trading costs is key, so focus on brokers offering low spreads and commissions. ECN brokers typically provide RAW or ECN accounts with direct access to interbank prices, avoiding dealing desks and reducing costs.
The choice of trading platform should align with your trading strategy and preferences. If technical analysis is your forte, platforms like TradingView offer extensive charting tools. For those interested in social trading, ensure the broker integrates with third-party platforms like MyFXbook. Popular trading platforms include MetaTrader 4, MetaTrader 5, cTrader, and TradingView.
The trading fees associated with ECN brokers are primarily composed of two components: spreads and commissions. Commissions are typically levied on trades conducted through RAW accounts, representing modest fees charged per trade, often expressed in terms of a round-turn per 100,000 units traded.
Spreads refer to the difference between the bid (buy) and ask (sell) prices for currency pairs. This cost is encountered in all trades, affecting both RAW and Standard account types.
ECN brokers can be considered beginner-friendly due to their direct market access via simple electronic platforms. This setup facilitates quicker transaction speeds, which helps in minimising slippage — a common concern among new traders. Additionally, ECN brokers typically offer tighter spreads, assisting beginners in managing their trading costs more efficiently.
An ECN account in forex trading provides a platform for traders to connect directly with each other to execute currency transactions. This type of account is known for offering RAW spreads, which are generally narrower compared to spreads on other account types. In addition to the benefit of tighter spreads, ECN accounts typically include a minimal commission fee on trades.
ECN brokers are indeed favourable for copy trading due to their provision of tight spreads, rapid execution speeds, and an extensive selection of trading signals. In the context of copy trading, “signals” refer to the strategies or trades of experienced traders that less experienced traders, or “copiers,” can automatically replicate in their own accounts.
Copy trading represents a straightforward method of engaging with the forex market, enabling individuals to leverage the expertise of more seasoned traders. The efficiency of an ECN network enhances the copy trading experience by minimising trading costs through lower spreads, which is particularly beneficial when following the trades of a chosen Signal provider.
In the UAE, ECN brokers must adhere to regulations set by the Dubai Financial Services Authority (DFSA) or the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA),
These regulators set rules around obtaining a license, maintaining adequate capital, segregating client funds, having a dispute resolution process, observing leverage limits, providing transparent product disclosures, complying with Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and ensuring a secure and transparent trading environment.
ECN forex brokers can experience slippage and are susceptible to requotes. Slippage happens when there is a discrepancy between the expected price of a trade and the price at which the trade is executed, which can result in both favourable and unfavourable outcomes. Implementing guaranteed stop-loss orders is one strategy to help reduce the impact of slippage.
With an ECN broker, you can utilize trading platforms such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), or cTrader, depending on which your broker offers. Each platform provides unique features, with MetaTrader 4 standing out as the most favoured for its rapid execution speeds and ease of use.
The minimum deposit requirement at ECN forex brokers differs across firms, with some offering a $0 minimum. To open a trading position, it’s crucial to have sufficient funds in your account to meet the minimum margin requirement. The size of your trade and the leverage you use will determine the amount of funds necessary.
ECN or RAW spread accounts typically feature lower spreads because commission fees are charged separately. Traders pay a commission for each lot they open and again when they close a trade.
In contrast, Standard accounts incorporate the broker’s commission within the spread, resulting in slightly wider spreads compared to ECN accounts, as the broker’s fees are included in the trading cost.
ECN brokers offer direct access to the interbank forex markets, matching orders between traders and other market participants, and eliminating middlemen.
Conversely, market maker brokers act as the counterparty to trades, often referred to as b-book brokers, and set their own buy and sell prices, creating a potential conflict of interest as they directly benefit from traders’ losses.
ECN brokers and no-dealing desk (NDD) brokers essentially represent the same concept. Both types of brokers provide direct access to the interbank forex market without intervening in traders’ orders, ensuring no re-quotes and allowing for more transparent trading conditions.
Pure ECN brokers are known for their rapid execution speeds and higher levels of transparency, albeit at the cost of higher commission fees. On the other hand, ECN/STP brokers may present variable processing times and less transparency in order routing, yet they tend to offer more competitive pricing structures.
The choice between these broker types largely hinges on your level of trading expertise. For novice traders, opting for a pure ECN broker could be the more favourable route.
ECN platforms are great for scalpers due to their typically tighter spreads, lower commission rates, and swift execution speeds, which are crucial if you’re a scalper aiming for quick profits. However, it’s important to note that spreads on ECN accounts are variable, not fixed, introducing the potential for slippage risks.
Automated trading is indeed compatible with ECN brokers, many of which support the use of trading bots. These tools can help save time, minimize emotional decision-making, and enhance trading performance through the application of backtested strategies.
To begin with automated trading, it’s crucial to choose an ECN broker that is both reliable and reputable, offering low spreads for optimal trading conditions.
Forex brokers do permit micro-lot trading, enabling transactions in lots of 1,000 units, in contrast to the larger sizes of a mini lot (10,000 units) or a standard lot (100,000 units). This allows traders, especially those with smaller account balances or who are new to forex trading, to participate in the market with reduced risk.
Identifying a fake ECN broker involves watching for certain red flags. Some of these can bea lack of transparency in their operations, offering only fixed spreads instead of variable ones, and operating without a true market maker model are key indicators of potential deceit. Genuine ECN brokers should offer a transparent trading environment where spreads fluctuate according to market conditions.
About This Best Forex Broker Comparison
Compare forex brokers was created by a team that has worked with forex providers for several years. The aim of this broker review has been to simplify the process of comparing brokers to find the best forex broker by spreads, costs and speeds. The tables were made based on information from true ECN broker websites and market maker websites, with no automation used to compile information on the tables or reviews.
Our final rankings when it comes to the average transaction cost, the cheapest ECN broker is Pepperstone due to its ultra-competitive spreads + commissions + fast order speed. The Australian-based broker is closely followed by HotForex, IC Markets, TMGM, ATC and FP Markets. Solely based on speed, the fastest ECN brokers are Pepperstone and TD Ameritrade.
Please note that all FCA-regulated brokers have stopped offering cryptocurrencies to retail traders starting from Dec 2021. However, cryptocurrency trading is still available to professional clients who are able to meet ESMA requirements.
Risk Warning: Forex trading on margin through the ECN technology carries a high level of risk and might not be suitable for everyone. A market maker broker can be used as an alternative for traders with less trading experience.
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