Forex Term

ECN

A broker model that routes orders to a network of liquidity providers.

ECN (Electronic Communication Network) brokers connect your orders directly to a pool of banks and other traders, showing real market prices with very tight, variable spreads. They usually charge a separate commission and avoid the conflict of interest of a market maker, which suits active traders.

Example

An ECN account might show a 0.1-pip spread plus a fixed commission per lot.

Related Terms

Recommended Brokers

IC Markets logo

IC Markets

Best ECN Execution

Visit IC Markets

Trading Forex and CFDs involves a significant risk of loss.

Pepperstone logo

Pepperstone

Best for Copy Trading

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Trading Forex and CFDs involves a significant risk of loss.

Risk

Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.