Thread: Real ECN/STP Brokers Wtih 0.01 Lot = Myth or Reality?

Hello, Folks.

Would you think it could be possible for actual ECN/STP brokers to offer 0.01 lot size trading at the real intermarket atmosphere?

I read somewhere on web that actual interbank brokers can only function with lot dimensions beginning from 0.10...

Can anyone please clarify this question?

Thanks in advance,
MrJinks.

For what I know Most ECNs don't take under 0.10.

But For the traders that the main concern is swap and spread. . And slippage/requote.

It's not your issue the way the broker fill the 0.01.

Thus, I think it's not a true issue.


Most orders under 0.10 are full of some hybrid technique. .

If their LPs client base is large enough to pool the lots, why not? Also, is a misconception that LPs or Banks are not MMs. Maybe the broker's LP's Bank or their LP has a structure in place.

correct. My sole point is, sure LPs might themselves be operating with a hybrid technique so they can provide below 0.10 so the LP's broker itself is capable of supplying it as well. The frequent misconception is that LPs and about the degree that is higher, large banks DONT operate as Market Makers or Hybrids. The easier to get LPs (hence why its more common) might just have the ability to provide 0.10 and no lower.

I don't think it is possible, but I am slightly perplexed. I mean usually brokers state start from only 0.01 lot dimensions, but in real it's 0.10 only according to market which I think is quite much possible for actual ECN. At the moment I'm working with OctaFX where it's similar thing, as they are ECN and they offer you the cheapest at 0.01, but market wise it's 0.1 only.

My guess is that all orders, occurring at exactly the same time /on the same pair, are merged into a single.
So, assuming that the broker is busy enough, the minimal quantity will always be bigger than 0.1.

Originally Posted by ;

My guess is that all orders, occurring at precisely the exact same time /on precisely the exact same pair, are merged to a single. So, assuming that the broker is active enough, the minimal volume will always be bigger than 0.1.

I think that it is as you stated.

The orders are pulled together and with a few algorith that they visit the market to market their exposition.


The model was clarified on the website of exness where there was a explation of the hedging procedure but there's not anymore.

Originally Posted by ;

Hello, People. Do you think it may be possible for real ECN/STP brokers to provide 0.01 lot dimensions trading in the real intermarket atmosphere? I read somewhere on web that real interbank brokers can simply function with lot dimensions starting from 0.10... Can anyone please clarify this query? Thank you in advance, MrJinks.

As far as I know it there are no real ecn fx brokers. At least not in the feeling of an ecn like futures and stocks??

Originally Posted by ;

quote As far as I know it there aren't any real ecn fx brokers. At least not at the actual feeling of an ecn like stocks and futures??

There is lmax

Originally Posted by ;

quote there's lmax

However an ecn takes into account the entire market. There's not any fx broker which has liquidity during the entire fx market. Again as an ecn lmax's real definition is not an ecn? They might route through their banks or partners but do not deal with them all. Therefore liquidity could lack at times?Maybe im simply comparing to futures and stocks and anticipating that?