Best ECN Brokers

Published on 30/09/2023

Trade Forex and CFDs on raw spreads and low commissions through the following list of true ECN brokers. These are our top choices.

Brokers we recommend

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4.8 / 5

Broker 1

Trade over 1,000 instruments on flexible leverage up to 1:500 on the MT4/5 and cTrader platforms. F************ is a true ECN broker and accepts all trading styles without restrictions.


4.0 / 5

Broker 2

F******* is a regulated offshore broker with an ECN trading environment. Trade CFDs on over 100 instruments with leverage up to 1:500, only on MT4. FXCC allows all trading styles and EAs.


3.9 / 5

Broker 3

83% of retail CFD accounts lose money

Trade CFDs on a wide range of markets on MetaTrader 4 and 5, with leverage up to 1:1,000 through L**************. This broker accepts all EAs and trading styles, including scalping and news trading. Earn up to 2.5% interest on your account's balance.



4.8 / 5

Broker 1

Trade over 1,000 instruments on flexible leverage up to 1:500 on the MT4/5 and cTrader platforms. F************ is a true ECN broker and accepts all trading styles without restrictions.

  • Likes
  • Flexible leverage up to 1:500.
  • Trade over 1,000 financial instruments.
  • Trade on MT4/5, cTrader or TradingView without restrictions.
  • Copy trading service is available.
  • Customer support is available 24/7.
  • Dislikes
  • No TradingView integration is available for now.
  • No investor compensation fund in the event of bankruptcy.
Our take on F*********

Enjoy low spreads and reliable trading conditions at all times with this award-winning broker. Open a Standard account to trade without commission, or a Raw account if you prefer to trade on raw spreads.

Access over 1,000 markets through MT4, MT5, cTrader and more recently TradingView. You'll find over 70 currency pairs, as well as gold and silver priced in US dollars, euros, Aussie dollars and other currencies. You can also go long or short on stocks and government bonds through over 40 ETFs.

Its free educational content also sets it apart from the competition. Get access to trading signals from Trading Signal and Autochartist as soon as you fund your account. You'll also get access to free trading courses for beginners and experienced traders, weekly webinars and e-books.

Read review

4.0 / 5

Broker 2

F******* is a regulated offshore broker with an ECN trading environment. Trade CFDs on over 100 instruments with leverage up to 1:500, only on MT4. FXCC allows all trading styles and EAs.

  • Likes
  • 100% bonus on your 1st deposit (up to US$2,000).
  • Flexible leverage up to 1:500.
  • All MT4 Expert Advisors are allowed.
  • No fees on deposits.
  • No minimum deposit.
  • Dislikes
  • MetaTrader 4 is the only available trading platform.
  • Withdrawal fees apply across some, but not all, funding methods.
Our take on F***

We particularly like F***'s high leverage (up to 1:500) available across all currency pairs, gold, silver, stock indices and energy products. Negative balance protection is available at all times.

Its MetaTrader 4 integration provides a smooth trading experience, with no lags and only minimal slippage. It accepts all trading styles and Expert Advisors, including scalping robots, without restrictions.

As this broker offers consistently low spreads, it is possible to enter and exit trades several times a day, to take advantage of even small price swings. Its ECN XL account has no commission. However, you should be aware that a $5 mark-up per lot will apply if you open an account through us.

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3.9 / 5

Broker 3

83% of retail CFD accounts lose money

Trade CFDs on a wide range of markets on MetaTrader 4 and 5, with leverage up to 1:1,000 through L**************. This broker accepts all EAs and trading styles, including scalping and news trading. Earn up to 2.5% interest on your account's balance.

  • Likes
  • All trading strategies are allowed.
  • Get free daily technical and fundamental analysis.
  • Receive up to 2.5% interest on used funds.
  • Copy trading accounts are also available.
  • Dislikes
  • Withdrawals fees are somewhat high, especially card withdrawals.
Our take on L**********

We've trade through L**********'s ECN account for over 4 years on raw spreads plus a commission of $5 per lot, per side. We like that it places no restrictions at all on our use of automated trading strategies.

Their customer service team is responsive, even on weekends. Our withdrawals have always been processed as quickly as possible. However, their withdrawal fees are a somewhat high, especially card withdrawals.

L********** publishes a lot of educational content in the form of webinars and articles on its blog, often with a focus on technical analysis. Their commentary could spark new trade ideas. However, you might find yourself lost if you are new to trading.

Read review

ECN trading benefits

Unlike traditional Forex brokers, ECN brokers allow you to trade directly on the Forex interbank market. Experienced traders prefer to trade Forex and CFDs through ECN brokers for a number of reasons, that include:

  • Tight spreads: trade directly on the Forex interbank market with Tier-1 liquidity providers. Competition between market makers and fractional pricing keep spreads as tight as possible. In turn, this makes it easier to profit for small price movements.
  • Execute trades instantly: an ECN broker has no dealing desk and no re-quotes. Trade on live, best executable prices with immediate confirmations. This facilitates trading during economic releases and times of unusual market volatility.
  • Depth of market: see liquidity at every price point in addition to bid offer spreads. Understand where liquidity lies and use these insights to predict short term changes in prices. Depth of market information supports scalping strategies.
  • Trade anonymously: ECN trading is completely anonymous. This helps ensure that the prices you're see are free from bias and reflect market conditions.
  • No conflicts of interest: ECN brokers act as intermediaries rather than market markers. They earn money through commissions on trades; the more you trade, they more they stand to profit. This helps align their interests with yours.

How to compare ECN brokers

Here are three criteria to keep top of mind when searching for the best ECN broker.

Commissions

Most ECN brokers earn money through a commission on trades rather than a mark-up on spreads. This is why they typically quote spreads as lows as 0 pips, also known as "raw spreads". F********* is an exception to the rule in that it allows you to choose between a commission-based and a commission-free account.

Their commission is usually expressed in US$ per lot or million US$ traded, and typically applies to each side of a trade. In other words, a $3 commission per lot per side will first apply when you open a position, and apply once again when you close your position.

Liquidity providers

Trading fees aren't the only criteria you'll want to bear in when comparing ECN brokers. You'll also want to check how many liquidity providers they work with. The more liquidity providers compete for your trades, the deeper the market and the tighter the bid/ask spreads. This also provides greater certainty of execution, that you'll come to appreciate when markets are volatile.

However, that information can be hard to come by, as brokers view it as commercially sensitive. Most brokers in our panel work with over 10 such liquidity providers. This is also the case with F***, a broker established in 2010 as an ECN-only broker.

Trading platforms

Last but not least, you'll also want to consider trading platforms when comparing brokers. In fact, this could be a major consideration if you already have a library of automated trading scripts. All brokers in our panel support the MetaTrader platform, in its versions 4 or 5. If you're into cTrader, an ECN trading platform with advanced charting and technical analysis capabilities, you should consider opening an account with F************ instead.

Is your broker a true ECN broker?

You may have noticed that some brokers use the word 'ECN' liberally for marketing purposes, even though they may not provide a true ECN service. Here's how to tell if your provider is a genuine ECN broker.

Depth of market information

Does your broker provide depth of market (DOM) information? Depth of market shows you the liquidity available for every bid and offer. DOM should be available for every instrument and change dynamically as orders are filled and new orders come to market. It usually appears in a small monitor directly in your trading platform's interface.

Order matching

Traders in an Electronic Communication Network (ECN) can enter competing bids and offers into the platform either inside or outside the spread, and hit one another's orders. You'll know your broker is a true ECN broker if you're able to open a position with a liquidity provider and close it with another, or execute a trade against the bid or offer of another trader through your broker's depth of market monitor.

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Author

About the author

I'm Stefan, a trader and an entrepreneur. My mission with TrustedBrokers is to help you find the right broker for you, whether you're a beginner or a pro. I've personally used and tested the brokers on our service, opening and funding real-money accounts, contacting customer service and placing trades. I started my career in investment banking in London.

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