Best ECN Forex Brokers

Electronic Communication Network (ECN) brokers provide traders with direct access to other participants in the currency markets, offering better transparency and tighter spreads. These brokers are known for their fast execution and access to the interbank market, making them popular among experienced forex traders.

With the rise of online trading, it’s more important than ever to choose a reputable ECN broker to ensure a safe and secure trading experience. This article covers the top ECN forex brokers in the industry and what they offer.

Quick Look: Best ECN Forex Brokers

• Best for U.S. Traders: FOREX.com
• Best for Advanced U.S. Traders: Interactive Brokers
• Best for Fast Execution Speed: BlackBull Markets
• Best for Longevity: HYCM
• Best for Non-US Traders: AvaTrade

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Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% to 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

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Best ECN Forex Brokers

Each of the following brokers uses an actual ECN to match buyers and sellers and doesn’t deal against its own customers. Here are Benzinga's top picks for the best ECN forex brokers.

1. Best for U.S. Traders: FOREX.com

FOREX.com is Benzinga's top choice for the best forex broker and is continually favored by brokerages and individual investors alike. A subsidiary of GAIN Capital, they have almost $1.5 billion in assets and $350 million in available liquidity. FOREX.com is also known for executing 99.65% of its trades in under one second.

FOREX.com has extensive tools for beginners and advanced traders alike, offering live streams of market data, commentary, analyst research, screeners and more. They also have an email newsletter that covers how the market is doing, along with entry and exit points.

Dedicated to helping you develop your forex trading skills, they offer courses for investors of all skill levels to continue learning.

You are able to trade FOREX.com's more than 80 different currency pairs on their Advanced Trading Platform for your desktop, MetaTrader, and through their web trading. These platforms are also easy-to-use and customizable.

2. Best for Advanced U.S. Traders: Interactive Brokers

Interactive Brokers accepts United States clients for its forex trading platform, which provides direct access to interbank market pricing. You’ll be able to trade 23 different currencies with commissions as low as 0.08 pips, but unfortunately, there’s no support for the MetaTrader platform.

Account minimums at Interactive Brokers are a bit high, though. You’ll need a $10,000 deposit in order to open an account, which may deter some smaller retail traders. But U.S. customers don’t have many forex brokerage options and Interactive Brokers is one of the best.

Additionally, its education library is loaded with different strategies and techniques for trading. If you’re just getting started learning how to trade forex, you’ll find a wealth of knowledge to get you started.

3. Best for Fast Execution Speed: BlackBull Markets

Beginner traders looking for a broker that offers exceptional 24/7 customer service, an extensive knowledge library, and no minimum balance will find it in BlackBull Markets. Experienced traders will love the platform’s spreads from 0.0 pips and up to 500:1 leverage, and average execution speed up 20ms.

The platform offers seven trading platforms including MetaTrader 4 and 5. It offers educational resources, including video guides, for beginner, intermediate, and advanced traders.

Founded in 2014 in Auckland, New Zealand, this continues to grow and recently received the Best in Class for Offering of Investments in the ForeBrokers.com 2023 Annual Awards.  

4. Best for Longevity: HYCM

HYCM has been in business since 1977 and has earned the trust of brokers worldwide. It processes more than 25 thousand orders a day and its customer service is easily reachable 24 hours a day Monday to Friday.

HYCM offers various types of trade accounts that charge no commission to $4 per round and pip ranges from 0.1 to 1.5 – and a maximum leverage of 500:1.

Traders can trade on MetaTrader 4 and 5, and the platform released its own trading app in 2022.

5. Best for Educational Resources: AvaTrade

AvaTrade is a reputable and well-established ECN forex broker that offers a wide range of trading instruments, including forex, commodities, indices, stocks and cryptocurrencies. They provide traders with direct access to interbank liquidity and competitive pricing, ensuring fast execution speeds and minimal slippage.

AvaTrade also offers a variety of trading platforms, including MetaTrader 4, AvaTradeGO, and their proprietary platform, AvaOptions, giving traders the flexibility to choose a platform that suits their trading style. With excellent customer service and a range of educational resources, AvaTrade is suitable for both beginner and experienced traders looking for a reliable ECN forex broker.

What’s an ECN Forex Broker?

Currencies aren’t traded in centralized locations the way stocks are on exchanges. Currency trades happen all over the world, but most take place on something called the interbank market. The interbank market is where the world’s largest global banks exchange currencies to provide liquidity to the forex market. Retail traders don’t have access to this market, so they trade through either an ECN or a market maker.

ECNs are complex computer systems that connect buyers and sellers from every corner of the forex market. Since ECNs have access to traders on both on the interbank market and retail brokerages, counterparties to trades can be found without the help of a market maker. Buyers and sellers can easily be matched, which results in quicker trades and more accurate spreads.

ECN brokers usually charge commissions and have high minimum account balances. But unlike market maker brokers, ECNs do a good job of executing your trade at the price you want and there’s no perverse incentive to trade against the customer. Since the market maker is the counterparty to a retail customer’s trade, conflicts of interest exist and that presents a risk in the largely unregulated forex market. The ECN broker works as a middleman, not a counterparty.

What to Look for in an ECN Forex Broker

ECN forex brokers tout themselves as fast, trustworthy and anonymous. The SEC considers ECN brokers to be alternative trading systems because they match orders through third parties instead of directly on an exchange or with a market maker. But don’t let this label deter you. If you have the capital to open an ECN account, there are a number of good reasons to do so.

Here are a few important things to consider when choosing a forex broker:

Properly Regulated

Because the forex market can be a wildly unregulated playing field, you want to choose a broker that can promise security and anonymity. Make sure your forex brokerage has a relationship with one of the primary forex regulatory groups like the Financial Conduct Authority (FCA), National Futures Association (NFA) or the Australian Securities and Investment Commission (ASIC).

Trading Platforms

If you want to use MetaTrader 4 to trade currencies, make sure the brokerage you choose supports the platform! You’ll find a list of supported platforms and app on each individual broker’s website.

Smooth Trading Experience

Sometimes a huge news story or sudden flush of trading activity can cause slippage. During periods like this, trades can be executed at prices beyond the customer’s request or dropped entirely. The best ECN brokers provide uninterrupted trading at the best possible prices.

Affordable Spreads

You might find an ECN broker with which you are very comfortable, but that does not mean it offers the best prices. Check the spreads for all the currency pairs you prefer to trade. A broker with the most affordable spreads helps you save money over the long term. You might also register for more than one broker depending on the spreads they offer.

Finding the Right ECN Broker for You

Often, reviews from current or past customers can help you determine the best forex brokerage for you. You’ll need to find one that fits both your trading budget and style and doesn’t claim to be something it’s not. Sometimes brokers claim to be ECN forex brokers even if they’re actually market makers, so check out a review or two before you sign up.

Frequently Asked Questions