Best ECN forex brokers.
Finding the best ECN Forex brokers is a crucial decision that can make you money or lose it. There are two types of ECN brokers: large and small. The small size has its advantages: you will be able to trade more often and have more control over what goes into your trades, but it's also more likely to lead to bad decisions.
Large ECN brokers can be intimidating because of their size. These brokers control a lot of money that needs to be kept in high liquidity pockets. This means that they are more likely to take risky investments, like forex arbitrage and other risky micro trends. This is due to the large size of their capital and it's also due to the fact that their customers have more money. Unfortunately, some of their risky investments also drive up market volatility which means higher losses for many traders.
Small ECN brokers do not have this capital requirement to ride on high interest rates, market volatility, and risky trading ideas. These are the types of brokers that will allow you to trade smaller amounts of money than you would with a large firm. Because the smaller sizes of these companies are easier to hold in a physical location, they can afford to have lower minimums for accounts. Their lack of ability to take larger risks means that their profit potential is lower. As a result, you will typically not find a great number of products offered by these types of ECN brokers. Their pricing will generally be more competitive than those offered by large firms and their liquidity may not be as great as well.
Not all small Forex brokers are created equal, though. There are three types of ECN market makers: front-end load, back-office and electronic communications network. The best ECN brokers will be able to provide you with the best of these services. Their liquidity providers will be able to provide traders with enough buying power to make it possible for them to maintain profits when market making currencies move against them. In addition, the best brokers will offer you a service that you cannot get from just about any other broker in the market. This service is the ability to provide market information to your Forex broker via cellular communications, allowing your broker to make accurate updates as to where the market is going so that you can remain as informed as possible.
If you want to be able to find the best ECN brokers, then you need to be able to identify those brokers that have a good reputation and offer consistent trading performances for their customers. Look at the average winning trades that each broker has made over the past few months or even years to make sure you are not dealing with a volume dependent broker. Volume based brokers are most susceptible to market conditions, which mean that you will not make consistent profits if your trades are based on guesswork and spread betting techniques rather than on your own established system.
You also need to think about whether you would like to work with an ECN broker that provides liquidity through buying and selling currencies as well as market making. While most people view working with an ECN broker as providing you with the ability to trade currency without needing to actually carry out the actual transaction themselves, a good liquidity provider can actually provide you with more market making opportunities. Some liquidity providers actually handle all of the trading for you; they simply act as a bridge between the buyers and sellers at the counter.
A good liquidity provider will be one that has multiple active trading platforms that can allow you to trade in different markets and timeframes. These platforms will give you a wide array of possible trades to make on any given day. Look for a broker who has several microloans available and who will constantly monitor the market making sure that each microloan is properly liquidated to allow you to capture the profits from each trade. There are some brokers that only have one or two microloans available to trade, while other brokers have hundreds of microloans all functioning at the same time. There is no reason for these brokers to not have numerous active microloans to trade on at any given moment. This will allow you to ensure that you always have a good variety of open microloans to choose from to maximize your trading opportunities.
When it comes to finding the best ECN brokers for you, it is important to find a broker that offers you low spreads on each trade. Spreads are the difference between the actual bid ask spread and the bid ask spread, which is the difference between the actual asking price and the bid asking price. This is used to charge clients different amounts based on their trading decisions. Good brokers will have spreads that are quite low, allowing you to maximize your profits. You should also ensure that your ECN broker has access to several trading pairs so that you can trade all over the world without being limited to just the major pairs.