ECN-broker

ECN — Electronic Communications Network — The ECN forex broker ensures mutual clearing of orders executed by various clients with the broker (a Party of the deal, namely counteractor) uninvolved. The ECN forex broker for retail traders is a platform where each order placed has its offsetting order either within the company or at the ECN broker′s counteractor. The latter is usually represented by large companies and banks of Europe and the USA and acts as a liquidity provider for the ECN broker. ECN broker′s clients trade in cooperation with each other. They are protected from any risks emerging when trading via the market maker. One of the basic requirements to be met by any ECN broker is high liquidity that allows executing most part of deals among traders within the company. Today over 500 000 InstaForex trading accounts ensure huge liquidity capable of satisfying the ECN system needs in full.

In case there is no offsetting order for the deal of a client it is passed to the broker′s counteractor. This technique is called STP (Straight Through Processing). Clients of the ECN broker can monitor the liquidity rate and execute deals. ECN-trading has some advantages as against trading by brokers, who turn out to be the market-makers, as by ECN-brokers the deals of Forex traders are not carried out against the broker, having its own counter-agent or other ECN broker client or in the form of liquidity, which is provided by ECN-broker partner.

ECN-brokers do not play against the client, as the market-makers and other broker company types do. InstaForex clients have 24-hour access to ECN-trading due to high internal liquidity rate and reliable counter-agents of the company. Presently, InstaForex appears to be one of the most popular brands in the world, offering the ECN-trading services.