Thread: Are ECN brokers better?

Hi,

I'm having a lot of Trouble deciding on a broker.

My egy was to start an account with around? 1.000 which is enough to get micro/normal accounts with EUR/USD distribute of 2-4 pips without a commission.
Then there is the choice with some brokers to start an ECN-account which is minimal? 2.000 euro but with lower spreads commission.

Which are differences between an ECN-account and also a normal account and so are they worth considering or what should be the basis of my selection?

Can I just start with a normal account and move to ECN in a later date? Or get the? 2k and only start with ECN?

I am planning to trade shorter timeframes / semi-scalping to get 10-20 pip at a time.

Hoping for some wise words.
/Jesper

Originally Posted by ;

If ECN broker, I prefer Dukascopy.com

From what I have read about Dukascopy I simply got a poor impression. However, are they fast, low spreads and what's their commission?

Problems depositing/withdrawing?

Can they supply Level II quotes?

Are their platforms better than Metatrader?

Can I open an ECN-account with #8364;2000?

Kind regards.

Either ECN or STP:
1-no working desk.
2-fast implementation.
3-no re-quotes.
4- no slippage .
5- no news disconnects .

Thank you .

Actually it's a no brainer
I just opened a demo-account using a ECN-broker, and eventhough there's a commission of $3.5 per lot, its still easier using the much lower spreads to make a profit

I will just demo for another month when obtaining the other? 1.000 had to open a real account.

Kind regards
Jesper

Originally Posted by ;

Hello,

I'm having a lot of difficulty deciding on a broker.

My egy was to start an account with approximately #8364;1.000 which is sufficient to get micro/normal accounts with EUR/USD distribute of 2-4 pips and no commission.
Then there's the choice with a few brokers to open an ECN-account that's minimal #8364;2.000 euro but with reduced spreads commission.

What are differences between an ECN-account plus a regular account and are they worth considering or what should be the basis of my choice?

If I just start with a regular account and then move to ECN at...

The really objectionable thing about non ECN brokers is their meddling with where you're able to set entrance prices. I don't trade at market price but always input with stop/limit orders. You'll then discover that non ECN brokers will prevent you from putting a pending order prevent (and occasionally price also ) too near the price. The difference fluctuates based on news, volatility etc.. Oanda are usually at 10 pips as ' Forex.com and Alpari but the good men (ie the ECN men ) do not have any artificial restriction. Provided the price/stop is the ideal side of the price you can place them anywhere. I spent hours trying to program my way around the stop/entry limits of non ECN brokers before realizing it wasn't a rewarding game to playwith. Totally invalidates your back-testing too.

The other issue with the table brokers is the price can be anything they want it to be... it does not need to represent deals being done in the real world - just the ones at their own coping desk.

ECN is really a pool of liquidity providers.
Can anybody explain me why a ECN is better over for instance a DD??
Who cares if MY broker for example Saxo gives me the liquidity or CityFX or even Goldman or Deutsche Bank? I receive my liquidity out of a bank anyway.
I begin to doubt whether ECN is truly that good. Ok with a DD they visit that your stop and so forth but you might not think that a DD will push prices 50 pips to get your stops? Perhaps you have any idea how much money that costs to move EURUSD 50 pips? :--RRB- And with ECN you have no fixed spread. I wonder if ECN is realy so holy as many believe.... Please explain.

I found that not being able to put SL/TP less than 10 pip away was a significant problem for me when scalping.

The fixed spread is actually not a fantastic thing. I attempted one broker with fixed 2 pip on EUR/USD and 4 pip on the GBP/USD. My current ECN-broker has regularly 0.6 about the EUR/USD and just around 1.4 about the GBP/USD in the London/NY overlap, so that is much better.
Allowed there's a $3.5 commision per lot traded but its still cheaper than the fixed spread.
2 pip spread = $20 price per commerce of 1 lot
0.6 pip spread $3.5 = $9.5 per commerce of 1 lot (and you start earning after 0.6 pip making $14-$9.5 = $4.5 in just the 2 pip that would have cost you $20 if you've mended disperse )

And its lightning fast as far as I could tell, no slippage worth noting.

Only my observations
/Jesper

I have an account Together with, just take the Commerce with the broker with the best spread in That time or the broker with the best rollover interest if Commerce is not a scalp

Originally Posted by ;

I discovered that not having the ability to place SL/TP less than 10 pip away was a big problem for me when scalping.

The fixed spread is actually not a good thing. I attempted one broker with fixed 2 pip on EUR/USD and 4 pip on the GBP/USD. My current ECN-broker has often 0.6 on the EUR/USD and only around 1.4 on the GBP/USD from the London/NY overlap, so that is much better.
Granted there's a $3.5 commision per lot traded but its still cheaper than the fixed spread.
2 pip spread = $20 cost per trade of 1 lot
0.6 pip spread $3.5 = $9.5 each trade of 1 lot (plus...

Which broker is this Jesper? Sounds great to me too.

I am not certain if I am permitted to advertise brokers in this part?
But its a finnish broker - then I have not said too much