I have argued with many traders to find out the best ECN forex brokers. But we all agreed that there isn’t absolute best ECN forex broker. Because US and UK brokers are more reliable than the rest of the world. But Cyprus brokers are offering better trading conditions such as: lower spread, lower margin, better trading platforms and payment systems… So we only can dedicate which one is the best ECN broker if we know your country, know your trading strategies. These are standards we think best ECN brokers should be. We will list down them here, so you can find out the best ECN brokers in your country base on these standards, we also will list down the best 5 ECN forex brokers in the world.
So, what are the standards of best ECN broker?
- Reliable ECN brokers
- Lower trading cost:
- Lower spread
- Lower commission
- Better payment systems to lower deposit and withdrawal fee.
- Better rebate.
- Better bonus
- Better Trading conditions: Better quotes, developing more trading platforms, lower slippages, better execution speed, lower swap or fee swap.
- Better local supports.
Let me explain why these standards are important for an ECN brokers
Best ECN brokers must be reliable brokers.
This is the most important standard to choose a broker because most ECN traders are big traders. They often deposit hundreds of thousands of dollars. So, they only deposit to trusted brokers. They can pay more for the trading cost to keep away from bad brokers.
How to know which brokers are reliable brokers?
– First: We have to check their regulations. Regulations are important. Because it isn’t easy to get good regulation.
What are regulations?
Regulations are profit/non-profit organizations what manage regulated brokers. Each regulation has their own regulations that all regulated brokers have to follow such as:
- Maximum Leverage
- Quotes quality
- Broker’s minimum operation fund.
- Segregated accounts to protect clients.
- Advertising messages to avoid misleading for traders…
In order to get a regulation, brokers have to complete all these standards before getting considerations from the regulations. So, the more reliable regulation, the more reliable brokers are.
But Regulations have their death disadvantages:
There are common disadvantages of US/UK ECN brokers are:
- High spread and commission.
- Higher margin requirements.
- Less trading platforms supported.
- Less payment methods…
All the disadvantages are because of regulations. Because the regulations rein brokers not to offer high leverage. So, their trading volume will be lower. Their income will be lower. But brokers have to pay regulation fee. They have to buy insurances for clients’ fund. It’s also cost them to put money to segregated accounts. So, it means they get less income and pay more cost. So that why they have to charge more spread and commission. So, the more regulations they have, the worst competition they are.
The problem here are most reliable regulation are US and UK regulations which don’t protect traders in the rest of the world. So, it doesn’t make sense for Asian, Africa traders have to pay more for US/UK regulation brokers but no one protect them if some-bad-thing happens.
What is my perspective about regulation?
I don’t agree with the idea: “the more regulation, the better”. Regulation is important because it reflects brokers’ standards. But the more regulations, the more cost. So, I think one reliable regulation is enough. Broker need one reliable regulation to prove that they follow reliable financial standards and company has good financial health.
What regulations do these brokers have?
|1||Exness.com||CySEC, FCA (UK)|
|2||FxPro.com||CySEC, FCA (UK), DFSA (Dubai), FSB (South Africa).|
|3||XM.com||CySEC, FCA, ASIC|
As you see, All of them got a reliable regulation such as: CySEC, FCA or ASIC. One is enough. Now I will explain why these brokers are better than other US, Europe brokers.
These brokers are reliable because:
They are in top largest retail forex brokers:
- Exness is the largest retail forex brokers: $400 Billions monthly.
- XM Trading volume: $300 Billions monthly
- FxPro: $ 100 Billion monthly.
For me, the larger brokers are, the more reliable.
– All these retail brokers are around 10 years old. And there isn’t any scam report. Actually, I read many complain in social. But most of these cases are because beginners don’t understand the trading systems.
Example: Many traders complained Exness trading platform that: they got Stop Loss when the price weren’t hit stop loss prices. Because Exness price chart is Bid price. But Stop Loss will be Ask or Bid price depend on your buy or sell positions.
These ECN brokers charge lowest trading cost.
US brokers often charge highest spread and commission.
Example: Forex.com, FXCM charges from 1.7 – 2 pip for trading EURUSD. But all above brokers charge very little spreads. They are around 50% lower than US brokers.
For ECN accounts, they charge from 0.0xx pip spread and from 5 – 7$ for each Lot. Exness charges lowest spread. Their spreads is from 0.0xx pip. In normal time, when there isn’t big news, their spread is zero sometimes. They only charge 5$ commission per lot while ICMarket charges from 6 – 7$, XM charges 6$.
They offer better payment systems/methods for Asia, Africa, and Australia.
I know there are some good US, UK brokers that they are very good in their country. But outside of their country, they are quite bad. Especially in Asia and Africa. Now in my Asian country, if I deposit by Credit Card, my banks will charge me from 1.7 – 4% my fund. It’s hard to earn 5% monthly but I have to pay 4% just for depositing. So, it is non-sense for me to trade in those brokers. Therefore, choosing ECN brokers offer local payment systems is very important.
What brokers have the best payment system?
I have traded at many brokers and Exness payment system is the best. They offer over 30 different payment methods. And in most of their target countries, they offer many local payment systems which are free-charged.
As usual, it will take you some hours to some days to withdraw. But in Exness, it is instant. You can get your money within seconds. You also can withdraw to your banks within minutes. It’s remarkable because there isn’t another broker can do that.
Why Exness Payment system is so fast?
Exness payment system is fast because they built an auto system that finance guys won’t intervene in the processes. If your withdrawal information match your ID. You can get your money instantly. Moreover, Exness also has to put a lot of money to these systems: e-wallets, banks, local payment systems … to keep all transaction run automatically.
Check Exness Payment system here.
These ECN brokers offer better rebates/bonuses
Most experts don’t like rebates or bonuses. Because they invest too much money to care about bonus/rebate. What they care are brokers’ credibility, spread, swap and payment systems. But rebates and bonus are relevant to cost also. What if you get 5$ rebate per lot? It means you are saving 0.5 pip spread (if trading XXX/USD). For me, if the brokers are reliable, there rebate and bonus program are extremely attractive.
In these 5 brokers, there are only FXTM and XM have bonus programs for beginners. The bonuses are very attractive. You can get 30$ welcome bonus when first times create accounts. And you also can get 100% bonus when depositing.
Get XM 30$ bonus here
Get FXTM 50$ bonus here
Have you ever asked why US/UK brokers seldom offer bonus?
Because US/UK regulations don’t allow them offering bonuses. This is the disadvantage of these regulations as I mentioned earlier.
These ECN brokers offer the best trading conditions:
Their ECN quotes are better.
I did a survey of 100 traders. The question is: “what type of Forex account do you think it is the best forex account for trading?” 95% traders think ECN account is the best account. But in reality, 80% of them are trading Market Maker and STP accounts.
Why they acted the opposite way to what they think is right?
The best advantage of ECN account is low cost and transparency. But death disadvantage of ECN is volatility. Trading ECN account is risky for beginners because its quotes are much more volatile than STP and MM accounts. Moreover, ECN slippages are higher. Quotes are not stable. There are more no-quote errors and gaps. Why? Because ECN is market, wild market where hundreds thousands traders are taking advantages, cheating each other’s. Of course trading with a company (Market Maker) and a bank (STP) is much stable.
So, that why we need ECN brokers that can provide more stable quotes and less slippages.
Why these retail forex brokers’ quote are better?
Some guys think big forex brokers which are liquidity providers will provide better quotes. But it isn’t true. Because these liquidity providers provide quotes by themselves. That’s why it isn’t stable. There are a lot of no-quote, slippages and gaps.
But above 5 brokers don’t provide quotes themselves. They get quotes from tens liquidity providers at the same time. And they choose the best quotes which will provided to retail clients. It’s much better because in case of one liquidity provider got quote problems, they will get quotes from others. And they are always the best quotes among top liquidity providers.
Here are top 3 Best ECN quote brokers
|1||Exness.com||Check it now|
|2||FxPro||Check it now|
|3||ICMarket||Check it now|
Better quotes mean there are less slippages, gap, and no-quote problems.
These brokers have better trading platforms
As you may know, MT4 and MT5 are 2 most popular trading platforms. But they aren’t perfect. They aren’t compatible with some operation system such as Windows Vista, XP. They also cannot install in some phones. That why some brokers have invested their own trading platforms which are more compatible to phones.
FxPro and XM are leading in developing/improving trading platforms.
Check XM trading platform here
These brokers support better.
While most brokers only support online and by English. These brokers support average more than 20 languages. They support by live chat, phone and local office also. They support 24/7 for top most popular language such as: English, Chinese, and Thai.
In the forex trading market, supporting is very important. Because Forex trading is very complicated. So, traders will need a lot supports. If brokers can support traders by local languages, it’s much easier for us.
These brokers are mainly work on Asia and Africa. And these countries are the biggest forex markets: China, Thailand, Indonesia, South Africa, Malaysia, Vietnam, Iran, Russia, Arabic countries…
Most of these forex brokers have office in China, Thailand, Indonesia, Malaysia and Dubai.
For the countries that they don’t have regional offices, they support by live chat and phone.
– Exness supports 13 languages and 24/7
– XM supports 30 languages and 24/7
– FxPro supports 19 languages