Questions to ask to determine whether broker is ECN?

[rom1]

Hi,

There may well be a thread on this already but I didn't see it.

I was wondering what questions I should asking brokers to determine whether they are genuinely ECN brokers or not?

So many seem to say they are ECN brokers, but it's becoming increasingly difficult to confirm which genuinely are and which aren't.

Thanks!

 

[Enivid]

Ask them, which liquidity providers (ECNs) they are connected to. Also, look at their spreads. If they are fixed or are too high - the broker is not ECN.

 

[jellyeb]

Hi,

There may well be a thread on this already but I didn't see it.

I was wondering what questions I should asking brokers to determine whether they are genuinely ECN brokers or not?

So many seem to say they are ECN brokers, but it's becoming increasingly difficult to confirm which genuinely are and which aren't.

Thanks!

ECN means they use different liquidity providers (diversificate their price feed) to get best spreads, more liquidity and sometimes faster execution. STP means a broker just passes the order to prime brokerage or some LP and doesn't care about the rest.

 

[MdJamalMolla]

Spread is indeed one major advantage with ECN, so any real ECN broker should always be giving you spread below 1 pips on major pairs while you can always go ahead with demo first before making your mind. Also, it’s vital to remember there are several self-claiming ECN companies out there but in reality they often are far from been a true ECN.