Ecn fx brokers and how to deal with ecn fx brokers

ECN Fx Trading?

ECN, which stands for Electronic Communication Network, really is the way of the future for the Foreign Exchange Markets. ECN can best be described as a bridge linking smaller market participants with tier-1 liquidity providers through a FOREX ECN Broker.
This linkage is done using sophisticated technology setup named FIX Protocol (Financial Information Exchange Protocol). At one end, the broker obtains liquidity from tier-1 liquidity providers (Major Banks) and makes it available for trading to its clients. On the other side, the broker delivers clients' orders to Liquidity Providers for execution.
An ECN broker benefits from commission fees per transaction. The higher trading volume the broker's clients generate, the higher the broker's profitability.

Ecn fx brokers  Completely Anonymous 

All ECN trading activity is totally anonymous. Anonymity enables traders to deal on neutral prices, which reflect the real market conditions only and are not biased against the client's direction based on forex trading strategies, tactics or current market positions.

Instantaneous Trade Execution 

Clients trade forex instantly on live streaming, best executable prices with immediate confirmations.

Automated forex Trading/Market Data

Through the use of our API, clients can connect their trading models and risk management systems to our market data feed and matching engine.

Variable Spreads

Unlike a dealer, however, ECN fx brokers does not control the bid/offer spread and therefore can not provide the same bid/offer spread at all times.

On an ECN fx , clients have direct access to market prices. Market prices fluctuate reflecting supply and demand, volatility and other conditions. The True ECN  fx brokers enables clients to trade on tight bid/offer spreads, which are as low as 1 pip on all majors in normal market conditions.

No Dealing Desk forex brokers vs Dealing Desk forex brokers Be aware from this kind of brokers

No Dealing Desk forex brokers vs Dealing Desk forex brokers and how to find a good forex broker

When picking a broker it is imperative to understand the trade structure that you will be using. You need to understand whether you are using a dealing desk Forex broker or not. This knowledge can greatly influence whether or not you feel comfortable using the broker in the long run. The biggest problem with your broker is whether or not they may be actively trading against you.

One of the biggest issues with a dealing desk broker is that they are quite often the person on the other side of the trade you take. If you think about this, it can be a significant conflict of interest. Your broker has a vested interest in seeing you lose on the trade. There have even been examples of brokers that have been indicted for playing games with their customers trades. You read stories of brokers that simply wipe their customers out, or refusing to pay profits as they will tell traders that the price of the trade was executed at a "false price".

Another problem with the dealing desk is that you may run into a delay when getting your order filled. In a meltdown, the dealing desk Forex broker needs to manually approve every trade that comes through. If there are thousands and thousands coming in, you may find that you get slipped several dozen pips before your trade gets filled. I have had personal experience with this, both for and against my bottom line. When you have a dealing desk that is overwhelmed, it can lead to exaggerated losses.

Contrast this with a no dealing desk environment. The no dealing desk environment automatically matches orders, or takes the other side. The no dealing desk broker isn't necessarily an ECN broker, as they can still take the other side of every trading place. Normally this is completely computer driven, and instantaneous. This is one of the main advantages over the traditional dealing desk model.

It shouldn't be suggested that simply because a dealing desk exists that the broker is dishonest. In fact, for a very long time this was considered to be normal business standards. But as time has gone on, a few bad apples have given the concept of the dealing desk a very bad name and traders are starting to demand at the very least automated trading, if not anonymous and ECN trading.

If you are uncomfortable with the concept of the dealing desk, there are plenty of brokers out there that do not use them. Even in a non-ECN environment, you can still find automated trading that is completely fair and transparent. It is up to you to be diligent, and look up the broker's record with such agencies as the CFTC and FSA. However, this argument may be a thing of the past soon as the ECN Forex broker is becoming more and more common.

Dealing desk forex brokers : please be aware if you profitable they dont pay you guys. it was my exprience they refuse pay $14000  it done by Nord FX

Nord forex :huge Scammer in field

AVAFX ; another huge Scammer they charge huge spread and thair chats are always incorrect and they charge hiddine fees for every trade.dont trade with them,

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