ECN is a short form of Electronic Communications Network. For sure an ECN Broker has no necessity of the dealing desk. Instead of this the Broker gives a market place where banks, multiple market makers and also various traders have the possibility to enter in the competing offers and bids and also have their own trades to be filled by these multiple liquidity providers in some certain anonymous trading environment. The actual trading is performed in the name of the exact Forex ECN Broker which is providing you your full anonymity.
A Forex trader might has own buy orders which are filled by the liquidity provider A and also close just the same order against the liquidity provider B. Without any doubt the best offer and bid is actually displayed to every Forex trader along with that current market depth that is the really combined volume which is available at every price level.
A big number of various market attendees who are giving pricing to these ECN Brokers definitely leads to much tighter spreads. Besides the ECN Brokers commonly charge some certain commission for the matching trades between the clients and the liquidity providers.
A Broker who is offering ECN for trading Forex surely offers a big number of advantages and benefits and the most obvious and clear are deep liquidity and also tight spreads. A tight spread implies that all scalpers and day traders have the possibility to take advantage of some small price movements. Besides deep liquidity means that huge volumes can be traded without having some effects on the actual price and that is particularly important in some volatile market conditions and also offers advantages and benefits for Forex traders who are using automated Forex trading systems.
Those two factors combined imply that you can take advantage and benefit of much more trading opportunities. This means that you have much more profit potential.