ECN Brokers

An ECN-like broker uses an electronic communications network with straight through processing (STP) and direct access, enabling forex trading directly with liquidity providers without dealing desk interference. This results in access to ECN-style financial markets where forex brokers can achieve lower spreads and superior execution speeds when compared to CFD market maker brokers.

Compare the best ECN brokers through the table below.

By Justin Grossbard / Updated: Tuesday, February 18th, 2020

Online Trading Platform

Broker Reviewed

Pepperstone
IC Markets
Interactive Brokers
AxiTrader
Hugosway
Our Rating
9.17
8.17
8.17
7.33
3.86
Most Awarded Broker
Best Spread Broker
Trade CFD and assets
Good for MetaTrader 4 traders
Hugosway Is Not regulated

Regulations and Licenses

Feature
Pepperstone
IC Markets
Interactive Brokers
AxiTrader
Hugosway
ASIC (Australia)
FCA (UK)
MAS (Singapore)
Pending
CFTC (U.S.A)
FSCA (South Africa)
Pending
IIROC (Canada)
FMA (New Zealand)

Brokerage

Feature
Pepperstone
IC Markets
Interactive Brokers
AxiTrader
Hugosway
No Commission Account Spreads From (EUR/USD):
1.0
1.0
0.0
Commission Account Spreads From (EUR/USD):
0.0
0.0
0.1
1.0
0.7 pips
Commission (per 100k traded side trip)
AUD $3.50
USD $3.50
USD $1mil = 0.20% (IBKR)
USD
$5 USD
Minimum Deposit
$200
USD $200
$0
$0
$100 USD
Volume Commission Rebates
Has Islamic Account
No Inactivity Fees
$15 per month
Funding Methods
16
15
4
12
4
No Deposit/Withdrawal Fees

Markets and Instruments

Feature
Pepperstone
IC Markets
Interactive Brokers
AxiTrader
Hugosway
Forex Currency Pairs CFDs
66+
65+
115+
80+
38
Cryptocurrency CFDs
4+
10+
6+
31
Index CFDs
2+
16+
26+
31+
11
Share CFDs
5+
100+
1000+
Commodities CFD
4+
19+
28+
9
Stockbroking
50,000+
Retail Maximum Leverage
500:1
500:1
14:1
400:1
500:1
Professional Maximum Leverage
500:1
500:1
400:1
500:1

Trading Platforms + Tools

Feature
Pepperstone
IC Markets
Interactive Brokers
AxiTrader
Hugosway
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
Proprietary Platform
Automatic / Robot Trading
Social + Copy Trading
Standard Stop Loss
Guaranteed Stop Loss Order
Guaranteed Negative Balance Protection
ESMA regulated territories only
ESMA regulated territories only
ESMA regulated territories only
ESMA regulated territories only
Demo Account
Unique Feature 1
Smart Trader Tools
ECN pricing
125 Markets, 31 Countries, 22 Currencies
MetaTrader 4 specialist
Based in Providence Mahe, Seychelles.
Unique Feature 2
Fast Execution Speed
Range of fee free funding options
Earn interest on idle cash balances automatically
Award winning customer service
Two Factor Authentication

Overall

Pepperstone Is The Best ECN Forex Broker

A comparison of the best ECN (Electronic Communications Network) Forex Brokers established that Pepperstone was the best forex broker in 2020 based on the following services/features:

Open a demo account >>Visit Pepperstone >>


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Our Rating

The overall rating is based on review by our experts

8.83
Spreads
10 / 10
Leverage
10 / 10
Trading Platform
10 / 10
Risk Management
7 / 10
Range of Markets
6 / 10
Customer Service
10 / 10

ECN Broker CFDs

ECN stands for ‘Electronic Communication Networks’ and in simplistic terms, it allows forex trading direct access to deep liquidity pools on the interbank market. This means that similar to the stock market you can execute trades directly with other participants in the market with the ability to see buy/sell orders (or in currency markets bid/ask spreads).

ECN Forex brokers essentially match trades between individuals and can’t make trades against their own clients. This provides peace of mind for some forex traders as they may be worried that the broker may trade against them which has occurred in the past by poorly regulated and run brokers.

ECNs Are Just Financial Matchmakers

The opposite of an ECN is a ‘market maker’ forex broker. These brokers can make both ask and bid prices which they can take from their customers. This means that the forex broker will take the opposite position to their traders’ positions and must buy/sell from you when trades are made. These brokers often have higher spreads but may offer some enhanced features such as ‘guaranteed stops’ which may make them more suitable for beginner traders.

Electronic Communications Networks or ECNs essentially help speed up the settlement of trades between brokerage houses and individual traders. With an ECN, no 3rd party or middle man exists. This helps to reduce settlement costs as there is one less party involved in a trade that needs to get paid.

An ECN also helps by allowing traders in a range of geographical locations right around the world to access financial markets no matter where they are. It also allows them to trade quickly and seamlessly.

Traders Can Trade Worldwide With ECN Access

Straight through processing or STP is another name that describes a true ECN broker. Brokers that offer STP on their platforms, place client orders directly with liquidity providers such as banks or institutional brokers without them passing through a dealing desk. Not only does this promote faster trade execution speeds, STPs also allow for greater market depth and transparency. The same bid/ask prices (spreads) are passed onto the client but STP brokers are usually compensated for offering this service via a small fee/commission.

Regulation And Company Details

Pepperstone is regulated in Australia by ASIC and the FCA in the UK and is audited by Ernst & Young. This means they must meet strict guidelines such as training standards, avoid conflict of interest and the requirements for customers deposits to be segregated in a separate account. They are not regulated by CYSEC which may limit some market participants. They are one of the largest Australian forex brokers and are gaining market share in the United Kingdom where they are relatively a newcomer.

Pepperstone Forex Trader Company Details

Open a demo account >>Visit Pepperstone >>

About This Best Forex Broker Comparison

Compare forex brokers was created by a team that has worked with forex providers over several years. The aim of their comparison tables has been to simplify the process of comparing brokers to find the best forex broker for individual Australian forex trader’s needs. Another review of Pepperstone exists in the Australia section. 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.

You can also view our ECN Broker dedicated sections including a section for South Africa brokers and Singapore brokers.

Click On The Country Icons Below To Compare ECN Brokers In That Region:

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