Best MT4 ECN Platforms

IC Markets – Best Australian ECN Broker

Second, on our list of best MT4 ECN platforms by spreads, costs and spread is the Australian regulated forex broker IC Markets.

IC Markets was selected as the best Australian ECN broker based on these key factors:

• Raw spreads starting from 0.0 pips
• 25 tier-1 liquidity providers
• Fast order execution speed of 40ms
• Handles on average $15 billion in forex transactions
• Collocated servers in the New York Equinix NY4 data centre (ensures low latency and slippage)

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 and cTrader.

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 FX 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.

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.

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.

Conclusion – Best MT4 ECN Broker in Australia

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.

FP Markets – 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:

• CFD trading on +10,000
• Fast order execution speed of 37ms delivered from NY4 data centre
• EUR/USD spread of 0.0 pips during peak market hours
• Proprietary trading platform IRES DMA trading platform
• Direct Market Access (DMA) with live market data

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:

• First Prudential Markets Pty Ltd, an entity authorized and regulated in Australia by the ASIC
• First Prudential Markets Ltd, an entity authorized and regulated in the EU by the CySEC
• FP Markets LLC, an entity registered in St. Vincent and the Grenadines

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:

• 0.0 pips on EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD and NZD/USD. The average spread offered on EUR/USD is 0.09 pips – one of the lowest worldwide.
• 0.1 pip on USD/CAD
• 0.2 pips on EUR/GBP, EUR/JPY and GBP/JPY
• 0.3 pips on EUR/AUD

During peak market hours the EUR/USD spread remains at 0.0 pips 55.87% of the time – according to price data compiled from Sept 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.

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.

Conclusion – 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!

TD Ameritrade – Good ECN Broker For US Clients

Fourth, on our list of best MT4 ECN platforms by spreads, costs and speed is one of the biggest stock brokerage firms in the US, namely TD Ameritrade. TD Ameritrade was selected as the best ECN Brokers for US-based forex traders based on four key factors:

• Forex trading with zero commissions
• +70 currency pairs and 10 of thousands of additional financial instruments
• Orders are filled on average in 0.07 seconds
• World’s leading liquidity providers including prime brokerage JP Morgan

Founded in 1975, TD Ameritrade is a renowned stock exchange-listed US stockbroker with a banking background, which falls under the regulation of:

• Financial Industry Regulatory Authority (FINRA)
• Securities and Exchange Commission (SEC)
• Commodity Futures Trading Commission (CFTC)

TD Ameritrade is authorized to provide brokerage and trading services to residents of the United States only while covering the US markets only. The broker offers its clients direct market access via a range of trading platforms – Classic Web Platform, NextGen Web Platform, TD Ameritrade Mobile, ThinkorSwim Desktop, ThinkorSwim Web and ThinkorSwim Mobile.

TD Ameritrade Spread Analysis

At TD Ameritrade spreads may be slightly higher, especially during less liquid trading hours. The average EUR/USD spread is 1.06 pips based on price data compiled from Oct 2018 through Sept 2019.

One of the biggest advantages of TD Ameritrade price engine is that it can absorb large orders.TD Ameritrade clients can transmit trading orders to 5 of the biggest tier-one liquidity providers: JP Morgan, Citadel Securities, XTX Markets, HC Technologies, and Virtu Financial.

TD Ameritrade Trade Costs

Trading Forex pairs does not incur any commissions at TD Ameritrade, as the broker’s compensation is incorporated in the bid-ask spread entirely.

TD Ameritrade will charge no commissions on trading Stocks and ETFs online but will charge a $0.65 fee per contract for Options and a $2.25 fee per contract for Futures.

Meanwhile, trading Mutual Funds is associated with a $49.99 commission per trade. However, we should note that out of 12,000 Funds available, the broker allows commission-free trading on approximately 4,000 of them. The $49.99 commission will be charged, in case clients sell those free Funds within 180 days following the purchase.

Finally, US Government Bond trading is free-of-charge, but, in the case with Corporate Bonds, the broker will charge a $1 fee per bond on secondary transactions.

At TD Ameritrade, the average transaction cost for 100,000 units traded is USD 10.6 (assuming the EUR/USD spread remains constant at 1.06 pips).

TD Ameritrade Fast Order Execution Speed

As for the broker’s order execution, TD Ameritrade utilizes advanced routing technology, which has ensured:

• Savings of $2.11 (per 100 shares) for clients during the Sept-Sept period of 2020
• 96.1% of executed market orders received a better price than the National Best Bid/Offer (NBBO) at the time of routing
• Market orders were executed in 0.07 seconds on average.

Conclusion – US ECN Forex Brokers

Overall, TD Ameritrade offers one of the best full-service experiences for US-based traders. By industry standards, the spreads are on the higher end, but this is compensated by the zero-commission trading policy. US traders can start forex trading risk-free with TD Ameritrade’s paperMoney account.

Note: TD-Ameritrade offers true leveraged forex trading and futures trading but does not offer CFD for trade.

IG – 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:

• 45 years of experience in supplying the needs of all types of traders
• Clients’ money is held in segregated accounts at their-1 banks
• Forex trading with spreads starting from 0.6 pips
• IG trade cost is built into the spread and there are no forex commissions
• Award-winning technology that can deliver fast order execution speeds of 0.014 seconds

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:

• The United Kingdom, where it operates as IG Markets Ltd, an entity regulated by the Financial Conduct Authority (FCA)
• Australia, where it operates as IG Markets Limited, an entity regulated by the Australian’s ASIC
• Singapore, where it operates as IG Asia Pte Ltd, an entity regulated by the Monetary Authority of Singapore (MAS)

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 on IG’s Standard OTC Account, 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:

• EUR/USD and AUD/USD starting from 0.6 pips
• USD/JPY starting from 0.7 pips
• GBP/USD starting from 0.9 pips

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:

• Processed 86 million trades in the fiscal year 2019
• Average 7 million orders are executed each month through IG trading platforms
• Handle 130,000 unique traders
• 89% of stop-loss orders have zero slippage and 11% negative slippage

Overall, the IG order management system has saved clients over GBP 55 million since Sept 2013.

Conclusion – Most Reliable ECN Brokers

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.

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FxPro – 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:

• Online trading on 6 financial markets
• Ultra-high execution speeds of 11.06ms
• Trading on the forex market with zero commissions (only through MT4 and MT5)
• Variable spreads and fixed spread account

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:

• United Kingdom – FxPro UK Limited, regulated by the FCA
• European Union – FxPro Financial Services Limited, regulated by the CySEC
• South Africa – FxPro Financial Services Limited, regulated by the Financial Sector Conduct Authority (FSCA)
• Internationally – FxPro Global Markets Limited, regulated by the Securities Commission of The Bahamas

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.

For example, when trading EUR/USD on the MT4 Fixed Spread Account, the spreads offered will be as follows:

• Between 08:00 am – 08:00 pm (UK time) – 1.6 pips
• Between 08:00 pm – 08:00 am (UK time) – 1.9 pips
• Between 09:15 pm – 10:50 pm (UK time) – 2.5 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:

1. The execution model used (instant or market execution)
2. Trading platform (MT4, MT5 or cTrader)
3. Spread type (fixed or variable)

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.

Conclusion – 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.

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HotForex – Good Low Spread 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:

• ECN solution with low-cost trading on the forex market
• 145ms order execution speed tested through third-party MT4 script
• Interbank spreads with 0.0 pips markup on EUR/USD and other major currencies
• Competitive commission rate from $3.0 per side per 100,000 units traded

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:

• HF Markets (Europe) Ltd, authorized and regulated by the CySEC
• HF Markets (DIFC) Ltd, authorized and regulated by the Dubai Financial Services Authority (DFSA)
• HF Markets (UK) Ltd, authorized and regulated by the FCA
• HF Markets SA (PTY) Ltd, authorized and regulated by the FSCA
• HF Markets (Seychelles) Ltd, authorized and regulated by the Seychelles Financial Services Authority (FSA)
• HF Markets Ltd, authorized and regulated by the Financial Services Commission (FSC) of the Republic of Mauritius

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 145 ms average speed.

Conclusion – Best Lowest Spread Forex Broker

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.

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Axi – Best MT4 ECN Platform

Last on our list of best MT4 ECN platforms by spreads, costs and speed is the Australian brokerage trading firm Axi. Axi was selected for offering the best MT4 ECN platform based on these key factors:

• Premium ECN trading technology via MT4 ECN bridge
• EUR/USD average spread of 0.2 pips (Pro account only)
• Low latency trading boosting average order execution speed of 100ms (limit orders)
• A commission rate of $3.5 per side for 100,000 units traded

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:

• 0.2 pips on EUR/USD
• 0.3 pips USD/CAD and USD/JPY
• 0.4 pips on AUD/USD and USD/CHF
• 0.6 pips on GBP/USD

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 commission rate of $3.5 per side per 100,000 units traded is in line with the 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:

• For market orders a speed of 130ms
• For limit orders a speed of 100ms

Conclusion – ECN Forex Broker with MT4 Account

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.

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