ECN Forex Brokers

Written by Miro Nikolov

Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: December 4, 2024

‹
• Jump to:
• Main Features
• Compared By Leverage and Commission per Lot
• ECN Forex Brokers by Spread
• What Are ECN Forex Brokers?
• Advantages
• Disadvantages
• Who Should Use ECN Forex Brokers?
• Tips
• Final Thoughts
›

Every Forex brokerage model comes with certain features and advantages. ECN model has gained massive popularity among these models because of their direct access to the interbank market and their transparency in operations.

But what exactly are the ECN brokers, what are their core benefits and how are they different from conventional brokers? The article will explore answers to these questions and help you decide if they are right for you.

1. 

   Fusion Markets

   Rating: 4.9

   74-89% of retail CFD accounts lose money

2. 

   FP Markets

   Rating: 4.8

   73.85% of retail investor accounts lose money

3. 

   Pepperstone

   Rating: 4.7

   75.5% of retail investor accounts lose money

4. 

   Global Prime

   Rating: 4.4

   74-89% of retail CFD accounts lose money

5. 

   Axi

   Rating: 4.3

   The vast majority of retail client accounts lose money

6. 

   XM Group

   Rating: 2.9

   72.82% of retail investor accounts lose money

Below you can find a comparison table of the best ECN forex brokers with tier 1 regulation from FCA, ASIC or CySEC. We rank them based on several factors including: regulation, spreads and commissions, Trustpilot rating, trading instruments, trading platforms, deposit and withdrawal methods.

Main Features of the Best ECN Forex Brokers

1. TRADE NOW READ REVIEW
   FP Markets

   Min Deposit

   $50 (AU$100)

   Trading Instruments

   Forex CFDs, Shares CFDs, Metals CFDs, Commodities CFDs, Indices CFDs, Crypto CFDs, ETF CFDs

   Regulators

   ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines)

   Trading Platforms

   MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView

   Spread

   1.0 pips Standard; 0.0 pips Raw

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker, PayPal, XPay, Rapyd

   Withdrawal Methods

   Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal

   73.85% of retail investor accounts lose money

   Customers can register raw accounts with a minimum opening balance of $50 (AU$100). ECN pricing comes at the expense of a $6 round-trip commission per standard lot. The account gives you access to over 70 currency pairs. Trading indices, metals, and other commodities is also possible. Raw accounts are compatible with the MT4 and MT5 platforms, with minimum trades starting from 0.01 lots. Users have access to VPS and Expert Advisors. Maximum leverage is country-specific (either 1:30 or 1:500).

2. TRADE NOW READ REVIEW
   Fusion Markets

   Min Deposit

   $0

   Trading Instruments

   Forex, Commodities, Indices, Crypto, US Stocks

   Regulators

   ASIC, FSA (Seychelles), VFSC (Vanuatu)

   Trading Platforms

   MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView

   Spread

   0.9 pips Classic; 0.0 pips Zero

   Leverage

   1:30 (1:500 for forex and metals via VFSC)

   Deposit Methods

   Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity

   Withdrawal Methods

   Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay

   74-89% of retail CFD accounts lose money

   ECN order execution is available via Zero accounts with spreads from 0.0 pips and competitive round-turn commissions of $4.50 (€4.05, £3.55) for currency and metal trading. This account is suited to the needs of well-versed and active traders who understand the intricacies of commission sizing. Zero accounts are suitable for all trading styles and facilitate trading in micro lots. Account holders can trade all available products, including 90+ currency pairs. By contrast, Standard accounts facilitate commission-free trading but have a 0.9-pip markup on spreads.

3. TRADE NOW READ REVIEW
   Pepperstone

   Min Deposit

   $0

   Trading Instruments

   Forex, Indices, Commodities, Cryptocurrencies, Share CFDs, ETFs

   Regulators

   UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA, SCB (Bahamas)

   Trading Platforms

   TradingView, MT5, MT4, cTrader

   Spread

   From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill

   Withdrawal Methods

   Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill

   75.5% of retail investor accounts lose money

   Pepperstone provides ECN trading through Razor accounts where raw spreads (from 0.0 pips) are determined by the market and not by the broker. Pepperstone compensates for these raw spreads with round-turn commissions of $6 (€5.20) per standard lot. Clients can connect their Razor accounts to popular trading platforms like TradingView, MT4/MT5, or cTrader. Over 1,200 markets are available for trading, while leverage reaches 1:30 or 1:200, depending on your country. Various base account currencies are supported, including EUR, USD, GBP, and CHF.

4. TRADE NOW READ REVIEW
   BlackBull Markets

   Min Deposit

   $0 (Standard)
   $2,000 (Prime)
   $20,000 (Institutional)

   Trading Instruments

   Forex, Commodities, Futures, Indices, Stocks, Cryptocurrencies

   Regulators

   SFSA (No. SD045), FMA (No. FSP403326), FSA

   Trading Platforms

   MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade

   Spread

   0.8 pips Standard; 0.1 pips Prime; 0.0 pips Institutional

   Leverage

   1:500

   Deposit Methods

   Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar

   Withdrawal Methods

   Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin

   BlackBull Markets provides seamless order execution and tighter spreads via dedicated ECN Standard, ECN Prime, and ECN Institutional accounts. ECN Prime is suitable for experienced retail traders, while ECN Institutional accounts fit the needs of large-scale professional traders. Spreads start from 0.1 pips for ECN Prime with a $6 round-trip commission and 0.0 pips for ECN Institutional with a $4 commission. The institutional version is unavailable in a swap-free format. ECN Standard accounts have no minimum deposit requirements and offer spreads from 0.8 pips with zero commissions. All three types offer maximum leverage of 1:500.

5. TRADE NOW READ REVIEW
   Vantage FX

   Min Deposit

   $50

   Trading Instruments

   Forex, Indices, Commodities, Shares CFD, ETFs, Bonds

   Regulators

   FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491)

   Trading Platforms

   MetaTrader 4, MetaTrader 5, ProTrader, TradingView, Copy Trading

   Spread

   1.1 pips on Standard Account; 0.0 pips on Raw, Cent, and Pro Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Union Pay, Boleto, Bank Wire, Skrill, Neteller, Crypto, POLi, FasaPay, Perfect Money, BPay, Pagsmile, AstroPay, JCB

   Withdrawal Methods

   Visa, Mastercard, Union Pay, Bank Wire, Skrill, Neteller, Crypto, AstroPay, Perfect Money, JCB

   Vantage caters to clients with a dedicated ECN account with zero deposit fees and institutional-grade pricing, with spreads starting from 0.0 pips. The Raw ECN account requires a starting deposit of $50 only. The broker charges a $6 round-turn commission per standard lot. Clients can connect their ECN accounts to the popular MT5 and MT4 platforms to gain access to over 1,000 CFDs with flexible leverage. A Pro ECN account is also available to large-scale traders, with lower round-turn commissions of $3 per standard lot and higher minimum deposit requirements ($10,000).

6. TRADE NOW READ REVIEW
   IC Markets

   Min Deposit

   $200

   Trading Instruments

   CFDs on Forex, Commodities, Index, Bond, Cryptocurrencies, Stock, Futures

   Regulators

   FSA (Seychelles), CySEC, ASIC

   Trading Platforms

   MetaTrader4, MetaTrader5, cTrader, ZuluTrade

   Spread

   0.8 pips Standard, 0.0 pips Raw Accounts

   Leverage

   1:30

   Deposit Methods

   Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna, Nuvei

   Withdrawal Methods

   Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna

   70.64% of retail investor accounts lose money

   IC Markets offers a Raw Spread account customers can connect to MetaTrader to enjoy spreads as low as zero pips. Prices are streamed from 50 institutional liquidity providers. Traders pay a $7 round-turn commission per standard lot. The account suits all strategies, including scalping, day trading, and automated trading. The minimum deposit requirement is $200. Depending on their country of residence, customers with raw accounts can access maximum leverage of 1:30 or 1:1000.

7. TRADE NOW READ REVIEW
   Eightcap

   Min Deposit

   $100

   Trading Instruments

   Forex CFDs, Commodity CFDs, Shares CFD's, Index CFDs, Crypto CFD's

   Regulators

   SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296)

   Trading Platforms

   MT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTrader

   Spread

   0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay

   Withdrawal Methods

   Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay

   76.09% of retail investor accounts lose money

   Eightcap enables customers looking for institutional-grade liquidity to register Raw accounts where they can trade over 800 financial instruments with spreads from 0.0 pips and round-turn commissions of $7 (€5.5, £4.50) per standard lot. Trade size ranges from 0.01 to 100 lots. Account holders are free to scalp and can transact in 7 base currencies (USD, EUR, GBP, AUD, CAD, SGD, and NZD). New customers must deposit at least $100 if they settle for this account type. Stop-out and margin-call levels are set at 50% and 80%, respectively. Testing the account in demo format is an option.

8. TRADE NOW READ REVIEW
   Global Prime

   Min Deposit

   $0

   Trading Instruments

   Forex, Cryptocurrencies, Indices, Commodities, Bonds

   Regulators

   ASIC (No. 385620), VFSC (No. 40256)

   Trading Platforms

   MT4 Desktop, MT4 Webtrader, MT4 Android

   Spread

   0.9 pips Standard, 0.0 pips Raw

   Leverage

   1:500 (1:30 for ASIC entity)

   Deposit Methods

   Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto

   Withdrawal Methods

   Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies

   74-89% of retail CFD accounts lose money

   This ASIC and VFSC-regulated broker does not operate a dealing desk or a proprietary order book, sourcing prices directly from third-party liquidity providers. Customers insisting on lower trading costs can open Raw accounts where spreads start from 0.0 pips but each standard lot they trade incurs a $7 round-turn commission. The minimum trade size starts from 0.01 lots, while the maximum is capped at 1,000 lots. The account is available in 7 base currencies, including USD, EUR, GBP, AUD, JPY, CAD, and SGD. Order execution speeds are as fast as 10 milliseconds.

9. TRADE NOW READ REVIEW
   XM Group

   Min Deposit

   $5

   Trading Instruments

   Forex, Stocks, Indices, Commodities, Thematic Indices

   Regulators

   (ASIC) (ref. No. 443670), FSC (license no. 000261/397), DFSA (ref. no. F003484), CySEC (license no. 120/10), CFTC; Registrations for EU passporting: - BaFin, CNMV, MNB, CONSOB, ACPR, FIN-FSA (Finland), KNF, AFM, FSA (Sweden)

   Trading Platforms

   MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal

   Spread

   From 0.0 pips (Zero Account), 0.6 pips (Standard and Micro Accounts)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard. Skrill, Bank Transfer, Neteller, Apple Pay, Google Pay, UnionPay, Maestro

   Withdrawal Methods

   Visa, Mastercard, China Union Pay, Skrill, Neteller, Bank Transfer

   72.82% of retail investor accounts lose money

   ECN-style trading is possible via Zero accounts with fixed commissions and spreads from 0.0 pips for major pairs like EUR/USD and USD/JPY. Clients opting for this account type need not worry about requotes or order rejections. Every standard lot you trade will cost you $3.50 per side. Zero accounts are available in several base currencies, including USD, JPY, and EUR. Users will benefit from free deposits/withdrawals and VPS services. The broker imposes no restrictions on clients with Zero accounts, allowing them to hedge and trade with Expert Advisors.

10. TRADE NOW READ REVIEW
    Axi

    Min Deposit

    $0

    Trading Instruments

    Forex, Stocks, IPOs, Indices, Commodities, Cryptocurrencies

    Regulators

    ASIC, FCA, CySEC, DFSA, FSA (Saint Vincent and the Grenadines)

    Trading Platforms

    MT4 Desktop, MT4 WebTrader, Axi Mobile

    Spread

    From 0.0 pips (Elite and Pro Accounts), 0.9 pips (Standard Account)

    Leverage

    1:30

    Deposit Methods

    Visa, Mastercard, Bank Transfer, Neteller, Skrill, AstroPay, Fasapay, Przelewy24, Boleto, Pix, Bitcoin, Ethereum, Ripple, Litecoin, Tether, Stellar, POLi, iDEAL, Sofort, Giropay

    Withdrawal Methods

    Mastercard, Visa, Bank Transfer, Przelewy24, Fasapay, Skrill, AstroPay, Pix, Boleto, Neteller, Bitcoin, Ripple, Ethereum, Litecoin, Tether, Stellar

    The vast majority of retail client accounts lose money

    The broker does not provide a designated ECN account but its Pro accounts offer roughly the same features. These are suitable for retail clients, giving them paid access to VPS hosting and free Autochartist services. Pro accounts require initial deposits of $5 and facilitate trading 220+ instruments through CFDs with maximum retail leverage of 1:30 (1:1000 via the Saint Vincent and the Grenadines entity). The account provides five-digit pricing and is available in 11 currencies (AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, PLN, SGD, USD). Spreads are as low as 0.0 pips at the expense of a $7 round-trip commission per standard lot.

ECN Forex Brokers Compared By Leverage and Commission per Lot

ECN Forex Brokers by Spread

What Are ECN Forex Brokers?

ECN stands for Electronic Communication Network. These brokers act as intermediaries that facilitate traders by connecting them with liquidity providers including banks, other traders, and hedge funds. Unlike market makers, ECN brokers do not take the opposite position of a trade, making sure of a no dealing desk environment.

Advantages of ECN Forex Brokers

Now, let’s explore some key benefits of ECN brokers.

1. Direct Market Access (DMA)

   The biggest advantage of an ECN broker is that it enables you to access the markets directly without any intervention. Hence, you can enjoy trading several trading instruments at a low cost and in real-time conditions.

2. Tight Spreads

   Another major advantage is the low trading cost. The spreads start with as low as 0.1 pip which reduces the trading cost, adding more to the profit of a trader. Moreover, the spreads remain tight even during highly volatile moments.

3. No Conflict of Interest

   Since every trader accesses the markets directly, there are no intervening bodies that could manipulate the prices or act against the traders. Thus, there is no conflict of interest between the brokers with the traders.

4. Faster Execution

   With ECN brokers, trades are instantly executed which makes it ideal for scalping and day trading individuals.

5. Market Transparency

   ECN Forex brokers maintain transparency. They do not act as counterparties against the traders. You can access the Depth of Market (DOM) data that shows you buy and sell orders at certain price levels.

Disadvantages of ECN Forex Brokers

With several benefits of ECN brokers, there are a few disadvantages as well. Let’s find out.

1. Higher Costs

   ECN brokers charge you a commission per lot. This could be a disadvantage for traders with small deposits or for those who trade too often.

2. Variable Spreads

   ECN brokers offer tight spreads but they are variable. When the liquidity is low, you can experience wider spreads. Thus, if you are a breakout trader or a news trader, you may find this as a disadvantage.

3. Technical Complexity

   Trading with ECN brokers may be complex as you need to understand the market dynamics and advanced knowledge to operate the sophisticated platforms.

4. High Minimum Deposit Requirements

   ECN brokers may ask for a higher minimum deposit. Hence, they are not suitable for you if you are a beginner or if you cannot afford the higher deposits.

5. Slippage in High Volatility

   Though ECN brokers offer tight spreads, you may face slippages when markets are highly volatile. Hence, your potentially positive position may turn negative.

Who Should Use ECN Forex Brokers?

The following types of traders should opt for an ECN broker due to its features:

Scalpers open and close several positions in a session with small profit targets. Hence, tight spreads are mandatory to increase odds of success.

Day traders may not trade as much as scalpers in a day. However, they tend to close positions on the same day. So, they may require quick entry and exit. Hence, fast execution and tight spreads are favorable for day traders.

High frequency traders and algorithmic traders require superfast execution as slight latency could harm their sequence of positions. Hence, such types of traders may find ECN brokers as suitable.

As a beginner trader, you may find the ECN brokers as advanced. Hence, you should learn well and polish your skills before going for one. Also, the minimum deposit requirements are high for the ECN brokers.

Breakout traders place pending orders on both sides a few seconds before a high-impact news event. Due to potentially wider spreads during news, ECN brokers may not suit you.

Tips for Choosing an ECN Forex Broker

Now you have grasped the idea of the ECN brokerage model. Here are a few tips to choose the best one for you.

• Regulation

  No matter how cool a broker is, it’s a big red flag if there is no regulation. A highly regulated broker is favorable for a trader in the long run as the regulatory body ensures that traders’ rights are protected.

• Trading Platforms

  Always look for the platforms that you are comfortable with. If a broker doesn’t offer that platform, then you may skip it.

• Trading Cost

  Other than spreads, commissions, swaps, and other fees may vary. Hence, compare and choose the one with no hidden fees.

• Customer Support

  A responsive customer support is important for the traders. Look at the response time and efficiency of CS staff.

• Value Addition Tools

  Good brokers offer value addition tools like calculators, indicators, EAs, analysis, webinars, etc. Hence, find the one that values traders by giving more than the usual.

Final Thoughts

ECN brokers remain a preferred choice by traders due to tight spreads, faster execution, and direct market access. However, beginner traders may be deterred by higher initial deposits and complex platforms. As a trader, assess your requirements and figure out which brokerage model aligns well with your goals. Choose the brokerage model and the broker wisely as this decision will directly impact your trading performance.