ECN Brokers UK Comparison

The Best No Dealing Desk Broker (NDD) Is FxPro

UK based traders who want unfiltered access to the forex market can opt to conduct their business through a no dealing desk (NDD) forex broker like FxPro. Headquartered in London, FxPro operates across 173 countries worldwide. FxPro also has 4 industry licences (FCA, CySEC, FSCA and SCB) which show that the brokerage trading firm operates lawfully and your funds are safe.

No dealing desk execution is superior for the following reasons:

• Trade execution speed (FxPro advertise 11.06 milliseconds average execution time)
• The sophisticated order execution engine
• Reduced slippage (negative slippage on only 12.53% of FxPro client orders)
• No requotes (98.60% of client orders are executed at the desired price)
• Access to 6 major markets (no cryptocurrencies are available)
• VIP trading account dedicated to high-volume UK traders (comes with reduced spreads – 30%)
• Decent trading commission of $4.5 per side (only applied to currency pairs and metal trading via the FxPro’s cTrader trading platform)

How FxPro No Dealing Desk Execution Model Works?

To understand how your orders are processed by FxPro our devoted team of experts has put to the test if FxPro is a true ECN broker or not. Unlike dealing desk brokers who mark up the wholesale price feed, ECN brokers are able to offer raw spreads. After conducting a real-time spread comparison, our rigorous process concluded that the spread size offered by FxPro is higher. Most UK ECN brokers are able to keep the spread lower.

For example, the GBP/USD spread depends (fixed spreads and variable spreads) on the trading platform used and the execution model:

• MT4 market execution model with a spread of 2.0 pips (live spread as of 02.11.2020)
• MT4 instant execution model with an average spread of 2.52 pips
• MT5 market execution model with an average spread of 2.52 pips
• cTrader market execution model with an average spread of 1.02 pips + $4.5 per 1 standard lot

The total costs offered by FxPro are more comparable with market maker forex brokers. This begs two questions that our experts at Compare Forex Brokers will answer:

• Is FxPro an ECN broker?

FxPro is not a true ECN broker because it matches some client orders internally. In the electronic communication network environment, the forex brokers pass the orders to their liquidity providers. FxPro can be considered a hybrid type of ECN broker as there is no dealing desk intervention.

•  Is FxPro an STP broker?

FxPro is not a true STP (Straight Through Processing) broker, but at the same time, they are using STP technology with their order execution engine. FxPro uses its price aggregator Quotix, which is co-located inside the Equinix FX Ecosystem (LD5 London or Amsterdam).

ECN Brokers Real-Time Speed Test

FxPro claims its price engine is ultra-fast, as orders are executed in less than 11.06 milliseconds, with up to 7,000 trades processed each second. Our team of experts tested the fast order execution speed claim and found the following real-time ECN execution speeds:

• For instant orders (market orders) the tested execution speed was 110 milliseconds
• For limit orders, the tested execution speed was 110 milliseconds

Compared to other UK-based forex brokers, FxPro comes in third place for both market order and limit order execution speed. Only Pepperstone and FP Markets can boost award-winning execution speeds.

Summary – Why FxPro is Among the Best Forex Brokers with NDD Model

The wide range of asset classes, fast order execution speed, reduced slippage and tight regulation has boosted FxPro on the top of the list for the best forex brokers with no dealing desk execution models. Check the top five reasons to choose the FxPro trading account here FxPro Review and learn why FxPro is one of the best spread betting platforms UK. Please note that in order to gain access to a demo account, you need to follow the standard procedures associated with opening a live trading account and submit your legal documents.

Open a demo account >>Visit FxPro >>

*Your capital is at risk ‘78.87% of retail CFD accounts lose money’

The Most Currency Pairs And CFDs Are Offered By Axi

For this ECN Brokers UK review, we assess the forex brokers with the most currency pairs and CFD instruments for online trading. Our in-house methodology of ranking forex brokers revealed that Axi (formally AxiTrader) is the best option for the UK market participants. Axi range of financial instruments and markets to trade include:

• 80 currency pairs (major, minor and exotic pairs)
• CFDs on metal trading (17 metal pairs that include Gold, Silver and Platinum)
• Commodity Cash CFDs (2 pairs US crude oil and the UK crude oil)
• Commodities Futures CFDs (9 financial instruments)
• Index CFDs (17 global indices from across 4 continents)
• Index Futures CFDs contracts (14 tradable instruments)

In total, the UK retail traders can have direct access to 145 currency pairs and CFDs. Axi blends together the bid and asks quotes from multiple sources of liquidity providers. This allows Axi to have low spreads that can start from as low as 0.0 pips. However, the typical average spreads found with the Axi trading account are:

• 0.44 pips on EUR/USD
• 0.85 pips on GBP/USD
• 0.40 pips on EUR/GBP

Note* Trading CFDs and forex trading on Axi Pro account come with a commission fee of GBP 4.50 per side per one standard lot (or $7.00 commission round turn trading costs).

UK Forex Brokers with Price Improvement Technology

Not all MetaTrader 4 trading platforms can bring advanced trading capabilities. However, Axi combines its wide pool of liquidity providers (global banks and financial institutions), its dedicated collocated infrastructure and fibre optics to provide UK forex traders with improved price technology.

The ECN trading liquidity can give UK-based traders a superior advantage, especially during volatile times when the exchange rates can suddenly move. The price stability offered by Axi creates a trading environment that is suitable for scalping.

Summary – UK ECN Brokers with Biggest Range of Markets

Overall, Axi can be the one-stop trading partner for UK residents seeking trading CFDs and forex trading from one single trading platform. Axi MT4 standard account and Pro account don’t require an up-front initial deposit. This is a positive as you can start testing your trading strategies without risking which is the case for the best UK forex brokers.

Open a demo account >>Visit Axi>>

IG Markets Has The Most Liquidity Providers

For our ECN Brokers UK review, we assessed the forex institutional liquidity providers that are included by the UK forex brokers and discovered that IG Markets has the biggest liquidity providers. Our team of FX experts has conducted a detailed analysis of the best UK ECN forex brokers to see who has a better relationship with the FX liquidity providers.

IG Markets unites liquidity providers of around 12 financial institutions and world major banks, including:

• Global banks (tier one banks)
• Financial institution
• Prime broker’s
• Non-bank liquidity providers
• Licenced investment companies

All these liquidity providers compete equally to give UK-based traders the best available bid and ask quotes. In theory, the more forex liquidity providers supply their feeds, the more competitive the spreads are.

Forex Brokers with Dedicated DMA Trading Platform

IG DMA passes client orders directly to the liquidity providers via their dedicated L2 Dealer platform. This proprietary trading platform was developed in-house by IG experts and it can give UK traders’ direct market access to:

• Trading UK CFDs via Shares DMA
• Forex Trading via Forex Direct

Note: Forex DMA is only available for UK professional traders such as investment managers, fund managers, forex analyst who make a salary in the financial field.

To qualify for an IG professional account, UK residents must meet at least two criteria from the following requirements:

• Significant trading activity in the past year
• Financial instrument portfolio exceeding €500,000
• Relevant work experience in the financial sector

The L2 Dealer DMA platform offers a superior technological solution for both CFD trading and forex trading. Besides gaining access to top ECN liquidity providers, the IG DMA platform offers the following advantages:

• Share trading with prices derived directly from stock exchanges, market makers and MTF dark pools
• Market depth directly from the London Stock Exchange LSE
• Order book that consolidates the bid and asks quotes
• Smart order-routing
• Complex order types, including pegged, fill or kill, execute and eliminate, good for auction etc.
• Professional Iceberg orders aimed for big orders to be divided into smaller sizes
• No requotes
• Trading directly from the price ladder
• Customizable DMA interface
• Access to over 16,000 financial instruments to trade
• No manual intervention

What are the Total Costs Trading via DMA Platform?

At IG DMA there is no dealing desk intervention. UK-based traders execute their orders with no additional markups on the spread. The forex prices are quoted directly from IG’s liquidity providers. The IG typical average spreads are 0.165 pips for EUR/USD respectively 0.589 pips for GBP/USD (according to the data compiled for the 12 weeks ending 19th Nov 2019).

While IG Markets doesn’t mark up the spreads for the DMA account, it charges a commission based on the volume traded in the prior month. UK forex traders can expect to pay $6 in commissions per every 100,000 units traded (based on $100 million volumes traded.). Traders need to generate at least $500 million in volume to benefit from more competitive spreads. For this type of trading volume, the forex commission drops to $3 per side. With Pepperstone and IC Markets you can get lower forex commissions without the need to generate such a high trading volume.

Note* For share trading, besides the regular fees, you may be liable for paying exchange data fees.

Summary – IG The Best UK Broker with the Most Liquidity

The IG DMA account is equipped to give UK traders’ direct market access to trading forex and CFDs. Due to the strong relationship with the leading providers, IG Markets can offer UK traders fast order execution speed of 14 milliseconds. IG is a trustworthy name with a rich history and infrastructure to satisfy the needs of the most sophisticated UK traders. You can download the L2 Dealer platform for free available for desktop and mobile trading.

Open a demo account >>Visit IG >>

Swissquote Has The Best No Commission Account

With more than CHF 30.5 billion in client assets, Swissquote has been awarded for its competitive trading conditions and transparent pricing policy. Compared to other UK ECN brokers, Swissquote ranked on top of our star scoring system for the best variable spreads. The Swissquote offering includes 4 account types, but there are only 2 retail investor accounts, namely:

• Premium Account – spread starts from 1.3 pips and you must make a minimum deposit of $1,000.
• Prime Account (the most popular) – spread starts from 0.6 pips and a minimum deposit of $5,000 is required.

Both of the retail investor accounts have 0 commission trading. Swissquote offers variable spreads on over 130 currency pairs and CFD instruments (precious metals, stock indices, commodities and bonds).

Note* Swissquote Elite and Professional accounts charge the raw spreads coupled with the typical ECN commission.

What are the Typical Variable Spreads Offered by Swissquote?

Our team of FX experts conducted a detailed comparison of the variable spreads offered by the UK best forex brokers and concluded that Swissquote has the best offering. Typically, the variable spread accounts have no commissions on trades or any other additional fee. UK traders can expect a minimum spread of:

• 1.0 pips for both EUR/USD and GBP/USD on the Prime account
• 1.3 pips for both EUR/USD and GBP/USD on the Premium account

Risk Warning: Please note that depending on the market conditions, the floating spreads can widen considerably. The table below compares the market maker spreads offered by UK forex brokers with spread-only accounts.

Benefit from Fast Order Execution and Flexible Leverage

With Swissquote you can benefit not only from the reduced variable spreads but also from fast forex execution speed and flexible leverage. Swissquote client orders are filled 97% of the time with an average execution speed of 27 milliseconds. The Swissquote execution model can boost the following additional advantages:

• 15% of client orders get price improvements (positive slippage)
• 63% of client orders receive no slippage
• 12% of client orders receive negative slippage

Swissquote also offers flexible leverage that can start from 1:30 for forex trading and can go up to 1:400 if you are eligible for the professional account. The table below compares the different levels of leverage offered by Swissquote.

Summary – Best Variable Spread Forex Brokers

The only disadvantage of the floating spreads is that the bid and asks prices can widen in times of financial markets distress. The UK-based traders can open a Swissquote trading account in over 15 supported funding currencies. Three bespoke trading platforms (MetaTrader 4, MetaTrader 5 and Advanced Trader) await Swissquote clients to conquer the financial markets.

Open a demo account >>Visit Swissquote >>

FXCM Has The Best Demo Account

FXCM offers the best demo account that mimics perfectly the same conditions that can be found with a live ECN trading account. Every online broker we assessed, we checked whether they offer demo accounts as an integrated tool of their trading platform. Trading complex instruments such as Forex currency pairs and CFDs carries a high-risk level.

• You can sign up for free and claim your practice account
• Up to $50,000 in virtual money
• Risk-free trading environment, practice forex trading risk-free
• Trade on the live feed prices
• Trade popular currency pairs, gold, silver and CFDs
• Choose from multiple trading platforms (Trading Station and MetaTrader 4) available on desktop, web trader and mobile

Note* The only downside found on the FXCM MT4 demo account is the maximum account balance restrictions to $50,000. Other ECN brokers and STP brokers are more flexible demo accounts with custom balances.

Summary – Best ECN Trading Account to Practice Trading Risk-Free

FXCM demo account gives potential clients the chance to test the financial services offered by ECN forex brokers. The demo account also permits UK FX traders to learn how CFDs work before risking their hard-earned money. FXCM’s trading platforms are fully equipped with all the tools to satisfy the needs of all traders. Click the link below if you want to sign up for your free MT4 demo account.

View FXCM Review >>Visit FXCM >>

*Your capital is at risk ‘67% of retail CFD accounts lose money’