What is ECN pricing?
What is ECN pricing?
As a broker offering ECN Pricing, FP Markets streams price feeds directly from a wide range of liquidity providers. We acknowledge that traders value deep liquidity, the highest levels of price transparency, tight spreads and ultra-fast execution to minimise slippage that could influence a trade’s result.
One of the ways to meet all these needs, while keeping the entire trading experience smooth and seamless, is through the Electronic Communication Network (ECN). This technology allows executable price streaming, creation of a virtual order book and an aggregation across multiple liquidity providers.
By connecting to a number of liquidity providers, brokers like FP Markets, can offer competitive spreads, ultra-low latency execution and minimal slippage. ECN Pricing allows trading orders to be matched and executed at prices that are typically more favourable. The feature could work well for forex traders using trading strategies like scalping via Expert Advisors (EAs) as this further accelerates the speed of execution.
ECN Pricing at FP Markets refers to how prices are determined, ensuring that competitive rates are provided. This is different from order execution, where a trade may be offset by a liquidity provider, matched with another client or market participant, or held internally by FP Markets.
Regardless of FP Markets hedging strategy the goal of our ECN pricing model is to ensure quality execution at tight pricing.
Why choose FP Markets as your trading broker?
Deep liquidity
FP Markets offers access to a large liquidity pool of leading, tier one, regulated financial institutions for a diverse liquidity mix and aggressive pricing.
Transparency
FP Markets’ traders can build their plans knowing exactly the costs thanks to transparent pricing and commissions.
Low latency execution speed
Minimise slippage and experience ultra-low latency order execution, using best-in-class technology, from FP Markets.
Tight spreads
By leveraging the Electronic Communication Network (ECN) pricing model, FP Markets connects traders directly with top-tier liquidity providers, eliminating dealing desk interference and promoting real-time price competition — this results in ultra-tight bid/ask spreads.
Trade with an ECN pricing forex broker
Traders should consider using ECN (Electronic Communication Network) pricing brokers because they offer direct access to a global pool of liquidity providers, including banks, financial institutions, and other traders.
This setup eliminates the need for a dealing desk, reducing the risk of price manipulation or requotes. ECN brokers promote transparency by matching buy and sell orders in real time, ensuring traders receive the most competitive and accurate pricing available in the market.
