way to trade outside traditional trading hours, providing a mechanism for those who either cant be actively involved during normal market times or who prefer the flexibility offered by wider availability. Some brokers claim that they have included best bid and best ask prices in their live and executable market data. It is intuitive, simple and provides everything a novice or experienced Forex trader requires. With FX market makers, whether or not a Forex trade is filled has nothing do with volume. Certain ECNs are configured to serve institutional investors, others are designed to serve retail investors, others are compiled to cross over between both sectors, ensuring that retail traders can experience similar levels of"s and spreads to that of institutions. ECN can be described as a bridge linking smaller participants in the market with tier-1 liquidity providers through an FX ECN broker.
An ECN broker facilitates trades for interested investors across the ECN. As for SelectNet, it is used first of all by market makers, but it does not require instant order execution and it assists investors in trading with particular market makers. However, the following example does not reflect the whole spectre of advantages various ECN brokers may offer - there could be more or less of the features mentioned, so you just need to be cautious. They are not actually making money from taking the other side of the trades, and because they are dealing with interbank and large financial establishments, the margin is considerably higher and the trading allotment is greater.
A market maker is essentially a bookie taking the opposite side of your trades. The volatility involved in MT4 ECN is exponentially increased. Until recently, there were claims that it was impossible for MT4 ECN to exist. Disadvantages of the Electronic Communications Network.