Forex trading is the reason for choosing the ECN trading mod
: Foreign exchange
For online forex trading, the ECN (Electronic Communication Network) trading model is the most popular. ECN Forex brokers offer smaller spreads, better liquidity, and greater transparency, which is why more and more Forex traders are willing to move to ECN Forex brokers. Trading with ECN Forex brokers can effectively reduce the risk of price manipulation, which is a problem often encountered by trader customers of foreign exchange dealers. What are the important advantages of ECN forex brokers? 1. Trading in major economic news is different from ECN forex brokers. Most foreign exchange dealers do not allow customers to trade during important economic news. . This is because the merchant tends to trade in the opposite direction to the customer. During the volatility of the market, the broker will circumvent the risk and will prohibit the client from trading in the event of a major risk event. Different brokers have different time rules for trading before or after the news. Most of the news transactions are usually foreign exchange short-term speculators, who are professional enough to trade and profit from the volatility of the currency brought about by the economic news release. ECN or NDD (no processing platform mode) sends customer orders directly to the liquidity provider, which is not risky for brokers (they only charge a small fee or commission), so they can allow short-term speculators to risk events. Trades occur during the period. 2. Customer direct docking liquidity provider ECN Forex Broker allows customers to directly connect to liquidity providers in the ECN network. Traders can trade at any time with quotes from major foreign exchange banks connected by this ECN Forex broker. If the broker is a true ECN or NDD broker and has good liquidity, the trader may even get the lowest spread to 0.1 points in the overlap of the trade. 3, the client / trader can be anonymous The customer can use the NDD transaction mode can be anonymous, which ensures that a trader's trading habits and account information are not leaked. In other words, if your strategy and trading habits are hidden, then even liquidity providers can't manipulate or hedge your trades. 4. Become a business yourself NDD Forex Brokers can make traders become their own business. ECN Forex traders can do it themselves or choose to do business. ECN Forex brokers allow these trader customers to place orders between bid-ask spreads. 5. Price fluctuations ECN foreign exchange trading prices have never been fixed. Therefore, traders will experience large price fluctuations in a short period of time, especially during the occurrence of risk events. At this time, ECN forex traders are likely to get big profits in a short period of time. ECN Forex Brokers are "friendly" speculators. 6. Better Trading Execution ECN Forex mode is the best way to execute trades. Traders do not trade directly with ECN forex brokers, but use their liquidity network. The NDD Forex model matches all orders, and the other party is a different field operator, such as a liquidity provider. In essence, there are very few repetitive quotes, and stop/limit orders can be triggered almost without exception. ECN Forex brokers have many advantages. Among the many advantages, the most prominent advantage is that when trading with ECN Forex brokers, the spread is not fixed. Therefore, traders will not be tied up during the highly active period of trading. Each currency pair continues to exhibit different spreads, and this spread will vary depending on the volume of real-time trading and the liquidity that can be effectively obtained. The ECN Forex Broker model is the most popular mode for traders on the Forex market. Its high connectivity and the ability to dock multiple liquidity pools make it an ideal choice for traders looking to succeed in Forex trading. In addition to free matching between customer orders, ECN Forex Brokers offers a wide range of features to make the Forex trading process easier. Of course, the most benevolent side of ECN's forex brokers is that any trader can trade with less money.