W.G. Hill Books, Underground Knowledge, Offshore Banking and Investing
Page: STP ECN Trading Model - The ECN Broker

Introducing the ECN broker

How Electronic Communications Network (ECN) broker works?

There's been a quiet revolution in the world of trading over the past six to seven years. If you're a relatively new entrant to the market it may have passed you by, you'll have simply accepted it as the norm. But for those of us who've been involved in the industry for over two decades, observing the recent evolution of our industry, to become the phenomena we now recognise, has been nothing short of miraculous.

The platforms, the spreads, the ease of doing business have improved significantly. However, the quantum leap (in all aspects of trading efficiency), came with the introduction of the STP/ECN trading model. This method of Forex trading is now recognized as the accepted standard of excellence, by which all Forex brokers should be judged. (An STP broker is a Straight Through Processing broker, sometime known as Market Making broker.)

../images/Currency-exchange-rates.jpg

Electronic Communications Network or ECN broker gives you a direct access to displaying your order
in the market, but it's usually available only to the large forex traders.

How STP/ECN trading model works

Your orders are routed to market, with no interference by way of dealing desks, into a liquidity pool of competing investment banks and large institutions. These are constituents who are looking to bid for your order, on your terms and at the lowest possible costs, at any time in the market, it's the perfect mechanism by which to trade. The "honest brokers" who offer this facility should be the only destination you consider, when opening an forex trading account. But there's another unforeseen consequence of only trading with an STP/ECN forex broker which is often overlooked by traders; they need you to succeed.

Not only will your reputable broker provide you with an account, a choice of platforms on which to trade, excellent spreads, tutorials, webinars, Forex schools, articles and much more, they're also willing, able and would welcome your communication, via whatever methods you prefer. Even that old fashioned method of communication, by making a phone call, would be welcomed by all reputable brokers.

STP/ECN trading model

There's possibly a reason why so many clients are reluctant to talk to their brokers, it isn't just a normal shyness, or the natural tendency towards introversion which many retail traders display. Prior to the introduction of the STP/ECN trading model many traders had a natural and arguably justified, distrust and suspicion of brokers. They were regarded as the necessary evil, no more than the route to market, a service that would ultimately profit from your losses. They weren't interested in your success, as in a relatively closed market with little competition, they could set their own terms of doing business, and if you didn't like it the alternatives weren't much better.

With the new STP/ECN model brokers need you to succeed, they survive and thrive only on the volume of trades you place. If you're not successful and that success needs to happen in as short a period of time as possible, then it's highly probable that you won't enjoy your initial baptism into the Forex industry. If you don't enjoy your initial experience, then you'll probably give up trading very quickly.

With this in mind the new broker mindset, the only mindset many brokers identify with, has been deliberately created with clients' continued success at the heart of the broker proposition who'll be delighted to converse with you. They can't trade for you, they can't advise on which trades to take. Under various financial, governance regulations, they can't opine on where they think a currency pair may be headed, but they can (and will) offer up every other support method as part of the small cost of the spread you pay. It's good to talk, why not open up that line of communication next time you have a query?

  Forex Trading Strategies Explained
../images/Forex-trading-courses-120.jpg
Forex Trading Courses
../images/Automated-trading-chart-120.jpg
Automated Trading System
../images/Checking-market-charts-120.jpg
Basic Tools for Trading
../images/Trading-world-currencies-120.jpg
Best Forex Books for Beginners
../images/TorOption-binary-trades-120.jpg
Binary Options Straddle
../images/Bollinger-Bands-chart-120.jpg
Binary Options Strategies
../images/Trading-in-currencies-120.jpg
The Blade Runner Trading Strategy
../images/Market-trends-120.jpg
The Camarilla Equation
../images/Monitoring-price-movements-120.jpg
Day Trading vs Swing Trading
../images/Trading-strategy-120.jpg
Elders Force Index Strategy
../images/Computer-operating-systems-120.jpg
Forex Trading Platforms
../images/Bearish-and-bullish-120.jpg
The Gartley Pattern
../images/Investment-brokers-120.jpg
Finding Forex Broker
../images/Reading-business-news-120.jpg
Forex Fundamental News
../images/Currency-exchange-120.jpg
Forex Market in Currencies
../images/Market-chart-120.jpg
Forex Markets Trading
../images/Forex-trading-charts-120.jpg
Forex Trading Account
../images/Financial-books-and-charts-120.jpg
Forex Trading Beginner Tips
../images/Global-trade-graph-120.jpg
Forex Trading Explained
../images/Forex-trading-currencies-120.jpg
Forex Trading Worldwide
../images/Trading-currencies-120.jpg
International Currency Trading
../images/Forex-trading-chart-120.jpg
Most Profitable Forex Indicator
../images/Forex-trading-software-120.jpg
Picking Forex Software
../images/Forex-wave-chart-120.jpg
Retracement Levels
../images/38.2-buying-opportunities-120.jpg
The 38.2% Retracement Level
../images/Stochastic-divergence-chart-120.jpg
Stochastic Oscillator in Forex
../images/Currency-exchange-rates-120.jpg
STP / ECN Trading Model
../images/Resistance-and-support-120.jpg
Support and Resistance Forex
../images/Hard-currencies-120.jpg
Safe Haven Currencies
../images/Successful-forex-projections-120.jpg
Successful Trader Traits

Home
BBBB
   Bye Bye Big Brother Black Book
   Bye Bye Big Brother CD ROM
   Bye Bye Big Brother Package
   Citizenship Residency Requirements
   Confidential Communication for PTs
   Paper PT An Important Concept
   What Is PT All About
PT
   The American Expatriation Guide
   Become an Honorary Diplomat
   Brazil and Paraguay Confidential
   Campione Confidential
   ESCAPE by Grandpa
   Instant Legal Residence Abroad
   The Invisible Investor
   Latvia Confidential
   The Monaco Report
   Panama Confidential
   Perpetual Traveler
   PT4 Grandpas Special Collection
   Portable Trades and Occupations
   The Second Passport Report
   Think Like a Tycoon
   WG Hill PT Collection
Bye Bye Big Brother
BBBB Free Chapter
Investing
   Basics of Investing Your Money
   Collectibles Worth Investing In
   Cryptocurrency Business Ideas
   Guide to Investing in Debt Funds
   Investing in Penny Stocks
   Investment in UK After Brexit
   Investment Options for Beginners
   Investment Trends to Watch
   Investor Protection for Expats
   Low Risk High Return Investments
   Non-Dom Reforms for British Expats
   Overseas Family Led Investments
   Price of Crude Oil and Stock Market
   Protecting Investments in Bankruptcy
Finances
   All About Commercial Lending
   Bankruptcy As A Solution
   Banks Don't Need Your Money
   Basics of Business Branding
   Blockchain Impact on Business
   Business Cloud Software
   Business Financing Sources
   Divorce and Finances Abroad
   Fund Your Small Business
   Hire Business Plan Consultant
   Learn About Finance Online
   Manage Business While Travelling
   Solve Cash Flow Problems
Forex
   Forex Trading Courses
   Automated Trading System
   Use Basic Tools for Trading
   Best Forex Books for Beginners
   Binary Options Straddle Trades
   Binary Options Strategies
   Blade Runner Trading Strategy
   The Camarilla Equation Formula
   Day Trading vs Swing Trading
   Elders Force Index Strategy
   Top Forex Trading Platforms
   The Gartley Pattern Chart
   Finding Good Forex Broker
   Forex Fundamental News
   Forex Market in Currencies
   Forex Markets Trading
   Forex Trading Account
   Forex Trading Beginner Tips
   Forex Trading Explained
   Forex Trading Worldwide
   International Currency Trading
   Most Profitable Forex Indicator
   Picking Right Forex Software
   Retracement Levels in Flats
   The 38.2 Retracement Level
   Stochastic Oscillator in Forex
   STP ECN Trading Model
   Support and Resistance Forex
   Safe Haven Currencies
   Successful Trader Traits
Offshore
   5 Benefits of Antigua Passport
   Costa Rica Offshore Corporation
   Dubai Offshore Banking
   Offshore Outsourcing Tips
   Stress Factors of Expatriates
Property
   The 10 New Bali Project
   Hottest Real Estate Markets
   Real Estate Investment Online
   Return on Property Investment
   Smart Real Estate Investments
   Technology and Real Estate
   Ways to Invest in Real Estate
Wine
   Business of Investing in Wines
   Fine Wine as Loan Collateral
   Investing in Wine in Australia
   Start Wine Trading Business
Expat
   BBBB Abridged Book
   The Gold Report
   Offshore Banking Guide
   Offshore Road to Riches
   PT2 The Practice
   VIP Divorce Kit
IWL
   The Invisible World
   Invisible Banking
   High Yield Investments
   High Yield Investments 2
   Future Wealth
   Financial Crisis
   The Offshore Investment Guide
Underground
   Underground Knowledge 1
   Underground Knowledge 2
   Underground Knowledge 3
   Underground Knowledge 4
   Scams and Fraud
Money
   Alan Greenspan's Housing Bubble
   America's Oversized Deficits
   April Job Losses the Lowest
   Bank of America Bonus Payments
   Bank Stress Test Results
   Banks Stress Tests Flawed
   Bank Stress Tests Questions
   Banks Financial Trickery
   Canadian Oil Companies
   Card Issuers Meet Obama
   China Detroit's Lifeline
   China Taiwan Investment Accords
   China's Yuan Carry Trade
   Ciena Corp Recommendation
   Credit Default Swaps
   Elliott Wave Disciple
   General Motors Savior
   How to Buy Banks
   India's Slow Growth
   Japan's Lost Decade
   Long-Short Investing Strategies
   Money Morning Bank Stress Test
   Oil Prices Could Jump
   Russia and China Energy Deals
   Russian Economic Model
   Small Caps Proven Profitability
   Solar Energy Comeback
   Sustained Economic Recovery
   World's Reserve Currency
Articles
   Online Transactions Survey Findings
   Millionaire Mindset Charateristics
   Real Estate Investing in Panama
   Strategies for Achieving Success
Seminars
   New Orleans 2015
   Casey Summit 2015
   Antigua Conference
   Recipes for Success
   Cancun Seminar
   Panama Seminar
Newsletter
Quotes
Updates
About
Contact
Links