Do we really need ECN brokers?
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Thread: Do we really need ECN brokers?

  1. #1
    First I tried every ECN utilizing MT4 including CIti, MBT and humor additional bridges. I am a regular trader I do not use EA's. I trade technical indiors and fundamentals. The issue with ECNs:

    1- Top entry barrier: They require $10,000 as initial deposit (most of them).
    2- They only have FOREX tools and generally non exotic.
    3- In the end they're Market Makers even if they're linked with bridges that they pour into a pool of market manufacturers.
    4-The execution type is really specious as indied in the film that they will not requote but finally if the market moves your order will be executed wherever the market strikes, which I find crazy since requoting is occasionally helpful espcially during news releases.


    In conclusion I figure ECN's are good for only those using EAs, however a variety of fantastic market manufacturers accept EAs. So, is there a need for ECNs?
    The response is up to you


  2. #2

  3. #3
    I agree with Omar. From my experience is that ECN is really a pool of liquidity suppliers. If your ECN provider is placing your order in apool with 16 banks inside of course you get the best prices BUT....

    Spreads can go crazy.
    Suddenly if you're trading using NDD ECN/STP and so on you haven't just 1 market maker to trade like you'd have using a DD but all those that are actually supplying liquidity. If your order goes into the ECN pool where there are 16 banks then they contend to fulfill your order have from beginning 16 banks from the own trade to take your stop. Maybe time to go back to futures .

  4. #4
    Quote Originally Posted by ;
    I agree with Omar. In my experience is that ECN is really a pool of liquidity providers. If your ECN provider is putting your order in apool with 16 banks in it of course you get the best prices BUT....

    Spreads can go crazy.
    Suddenly if you're trading with NDD ECN/STP and so forth you haven't only 1 market maker to trade against like you'd have with a DD but most of those who are actually providing liquidity. If your order goes into the ECN pool where you will find 16 banks then they compete to fulfill your order but have from starting 16 banks...
    Well whenever you're trading in a TRUE ECN environment, you aren't only trading with the liquidity providers, you can also be trading with your fellow traders too. In a TRUE ECN setting, you're supposed to be trading with whomever is providing the quote at the moment, that might be a MM, a bank, a different fellow trader or a different broker exactly like in an actual market. In a true market, everybody is trading against you anyway. That's why they call investment trading as a zero-sum game. You can only gain when someone somewhere loses.

    Trading with a DD is similar to trading in a market that is cornered by this DD with all your trading levels bared to allow them to see. You're like sitting ducks for those DD's to exchange against. Not sure why you would want to return to them. Maybe I am missing something ...

  5. #5
    Quote Originally Posted by ;
    First I tried every ECN using MT4 such as CIti, MBT along wit other bridges. I'm a normal trader I don't use EA's. I trade on technical indiors and fundamentals. The issue with ECNs:

    1- Top entrance barrier: They require $10,000 as first deposit (most of them).
    2- They just have FOREX instruments and usually non exotic.
    3- In the end they're Market Makers even if they're connected with bridges that they pour into a pool of market manufacturers.
    4-The implementation type is really...
    haha fine display dude!

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