Best ECN Brokers
The technology behind true ECN brokers allows for faster executions and tighter spreads with higher leverage and greater transparency. Here we list the best ECN brokers in the world 2024 and also explain how ECN brokers work, their benefits and drawbacks and how to get started.
Top 6 ECN Brokers
We have reviewed 267 brokers and these are the 6 best ECN brokers:
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
Axofa10% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFDs, Stocks, Indices, CommoditiesMT5Debit Card, Credit Card, Visa, Mastercard, Neteller, Skrill, Bitcoin Payments, Wire TransferUSD, IDR -
3
Sage FX$1,500 trading competition
$100.01 Lots1:500PendingForex, indices, cryptosTradeLockerCredit Card, Visa, Mastercard, Bitcoin Payments, Ethereum PaymentsUSD, EUR, GBP, CAD, AUD -
4
Plexytrade120% Cash Welcome Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$500.011:2000CFDs, Forex, Indices, Stocks, Commodities, CryptoMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD, EUR -
5
Coinexx100% Deposit Welcome Bonus
0.001 BTC0.01 Lots1:500Forex, Commodities, Indices, CryptocurrenciesMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD -
6
World Forex100% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFD Stocks, Metals, Energies, Cryptos, Digital ContractsMT4, MT5Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, VoletUSD, EUR, RUB
Here is a short overview of each broker's pros and cons
- FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
- Axofa - Axofa is a forex and CFD broker registered in St Vincent and the Grenadines. The broker offers three account types with access to forex, commodities and indices. With ECN processing, low minimum deposits and no commissions, Axofa remains an attractive option, although the broker does not hold a reputable license.
- Sage FX - SageFX is an offshore, unregulated CFD broker that offers highly leveraged trading on forex, stocks, commodities, indices and crypto via the TradeLocker platform. Traders can access commission-free trading or an ECN account with tight spreads. While the broker's regulatory status is weak, it does provide segregated accounts and two-factor authentication.
- Plexytrade - Established in 2024 and headquartered in Saint Lucia, Plexytrade is an ECN/STP broker. Geared towards active traders, it supports four account options, crypto deposits and withdrawals, plus very high leverage up to 1:2000 made possible by its unregulated status.
- Coinexx - Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.
- World Forex - World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Stocks, Futures, Futures Options |
| Regulator | NFA, CFTC |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
Cons
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
Axofa
"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform. The low entry requirements and ECN spreads are particularly promising, but the lack of transparency and respected regulatory oversight raises security concerns."
Axofa Quick Facts
| Bonus Offer | 10% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, CFDs, Stocks, Indices, Commodities |
| Regulator | SVGFSA |
| Platforms | MT5 |
| Minimum Deposit | $1 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD, IDR |
Pros
- The $1 minimum deposit across all 3 accounts will appeal to novices and those on a budget
- The broker offers a range of local payment methods, especially for clients in Asia, as well as crypto deposits
- Axofa offers the MetaTrader 5 platform which will particularly serve intermediate to experienced traders looking for advanced charting tools
Cons
- The offshore operations and lack of any regulatory oversight is a major concern
- Our team found inconsistencies between international subsidiaries and website information
- There is a lack of transparency around pricing and account conditions, which significantly reduces the trust score
Sage FX
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
Tobias Robinson, Reviewer
Sage FX Quick Facts
| Bonus Offer | $1,500 trading competition |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, indices, cryptos |
| Regulator | Pending |
| Platforms | TradeLocker |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- Low starting deposit from $10
- Fast withdrawal processing
- Bonus offers and trading competitions
Cons
- Not regulated by any reputable body
- Relatively narrow range of asset classes
- Lacks educational resources and other extra features
Plexytrade
"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."
Plexytrade Quick Facts
| Bonus Offer | 120% Cash Welcome Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Indices, Stocks, Commodities, Crypto |
| Platforms | MT4, MT5 |
| Minimum Deposit | $50 |
| Minimum Trade | 0.01 |
| Leverage | 1:2000 |
| Account Currencies | USD, EUR |
Pros
- Despite lacking regulation, Plexytrade provides negative balance protection and reinforces safety protocols by holding client funds in segregated accounts.
- US residents are accepted as clients, distinguishing Plexytrade as one of the rare offshore brokers that cater to US-based traders.
- Plexytrade accommodates a range of trading methods and short-term strategies, including scalping, hedging, and automated trading.
Cons
- There are no social or copy trading features for inexperienced traders to replicate the trades of more experienced investors, trailing category leaders like eToro.
- Plexytrade lacks regulation in major jurisdictions, significantly increasing the risks of opening an account and depositing funds.
- Deposits and withdrawals are exclusively facilitated through cryptocurrencies, as Plexytrade does not support bank cards, bank wire transfers, or e-wallets.
Coinexx
"Coinexx best serves short-term traders willing to foregoes regulatory protections in return for highly-leveraged CFDs and trading accounts, deposits and withdrawals processed in cryptos like BTC. "
Coinexx Quick Facts
| Bonus Offer | 100% Deposit Welcome Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Commodities, Indices, Cryptocurrencies |
| Platforms | MT4, MT5 |
| Minimum Deposit | 0.001 BTC |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD |
Pros
- Coinexx uses an ECN model that facilitates ultra-tight spreads from 0 pips, which alongside high leverage up to 1:500, may serve fast-paced, high-volume trading strategies.
- The virtual private server (VPS), hosted near the firm’s data center in Amsterdam, offers 24/7 connectivity, low latency and 99.99% uptime, catering to algo traders.
- Coinexx is one of a limited pool of brokers to support the ActTrader platform, which is highly customizable with detachable widgets, as well as 48 indicators, 11 timeframes, and price quotes up to 8 decimal places.
Cons
- Despite operating for over 7 years, Coinexx still hasn’t secured any regulatory approvals, respected industry awards or the full confidence of our experts.
- Although it supports near-instant account funding in 25+ cryptos, the absence of fiat deposit options at Coinexx will be severely limiting for many traders.
- Aside from 7 calculators (forex, margin, pip, currency, commission, swap, PnL), Coinexx offers very little in terms of additional tools, with no education or research features to support traders.
World Forex
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
World Forex Quick Facts
| Bonus Offer | 100% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts |
| Regulator | SVGFSA |
| Platforms | MT4, MT5 |
| Minimum Deposit | $1 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD, EUR, RUB |
Pros
- MT4, MT5 and a proprietary trading terminal
- A wide range of assets to trade, including via digital contracts
- Demo account
Cons
- No negative balance protection
- Weak regulation
- Withdrawal fees apply
What Is An ECN Broker?
The simple definition is that Electronic Communication Network (ECN) brokers enable traders to place competing bids against each other. They are Non-Dealing Desk (NDD) brokers, meaning that instead of passing orders to market makers who take the opposing position in a trade, they connect buyers directly with sellers. When they cannot match two counter-parties, they reflect the highest bid and lowest ask price listed in the open market.
ECN forex brokers act as a major source of liquidity for retail traders versus major market makers like large banks, hedge funds and other financial institutions. They are the fastest-growing brokerages globally and are particularly popular for forex trading, offering greater transparency for investors.
ECN Brokers Vs STP Brokers
ECN brokers are very similar to Straight Through Processing (STP) providers. STP brokers also have no dealing desk. Listed trades are routed to the broker’s group of liquidity providers, such as hedge funds, big banks and investors. These providers act as counter-parties for each trade and compete for the best bid/ask spreads. The broker effectively acts as a silent facilitator, connecting the trader with its internal liquidity pool and taking its fee from a mark-up in the spread.
The primary difference with ECN vs STP brokers is routing. Whereas the STP broker provides access to different providers in their liquidity pool, the ECN plays the role of a hub. The hub essentially acts as the primary liquidity source, formed of the different hedge funds, banks and market players. The other notable difference is position size. ECN brokers typically cap minimum position sizes at 0.1 lots. This is a result of few liquidity providers being able to cater to smaller position sizes, which can prove challenging for beginners.
Both ECN and STP models offer fast executions and tight spreads which lend them to a range of strategies, including scalping trading. In fact, many ECN, STP or hybrid brokers offer zero-pip forex spreads, though they may charge a fixed commission per lot.
Benefits Of ECN Brokers:
There are several advantages to trading with an ECN broker:
- Execution speed – Pure ECN forex brokers such as Pepperstone connect you directly to liquidity providers ensuring direct market access and faster fills.
- Transparency – ECN brokers prevent price manipulation as everyone uses the same feed and trades at a defined price. No investor enjoys a built-in advantage over other traders on the ECN.
- Trading hours – ECN providers generally let you trade beyond traditional trading hours, allowing investors to react to after-market news announcements, for example.
- Leverage – Top ECN brokers typically offer leveraged forex trading. Ratios vary depending on your jurisdiction, but it’s not uncommon to find 1:100 leverage levels.
- Scalping – Rapid order executions and tight spreads lend ECN brokers to high volume scalping forex strategies. With that said, it’s worth checking the broker’s guidelines around scalping before you deposit funds.
- Regulation – ECN providers are heavily regulated. This is particularly important in light of the increasing number of online forex scams. The best ECN brokers are regulated and meet compliance measures. See our list of the best ECN brokers above for trustworthy providers.
Drawbacks Of ECN Brokers
Downsides to trading with ECN brokers include:
- Commission – Forex commissions charged by most ECN brokers usually range between $2.50 to $5.00 per lot. Fees tend to be higher compared to trading CFDs, stocks, binary options, or other non-ECN trading brokers. This may mean ECN is less favourable for low-volume retail traders or those with micro-accounts.
- Volatility – Forex markets are vulnerable to sudden upsurges in variable spreads, especially during high market volatility. It’s therefore important traders use appropriate risk management tools.
- Deposits – The best ECN brokers generally come with higher opening deposits than standard trading accounts. This is because ECN providers often shift the responsibility of meeting market liquidity requirements on the trader. This is the opposite of a market maker broker who can intervene to provide liquidity on the trader’s behalf, and therefore offer lower minimum deposits.
How To Identify The Best ECN Brokers
The top true ECN brokers are regulated by reputable financial agencies. For example, if you’re trading forex in the UK, check the provider is regulated by the FCA. For traders in Europe, check for CySEC regulation. Reliable regulators will cap leverage limits to protect a trader’s risk exposure.
Logistically, location is significant as the best ECN brokers can only accept accounts for traders in the countries they work within. For example, RoboForex cannot accept traders in the USA, Japan, Canada and Australia, despite being a top ECN broker. This means clients from the US will need to look to another broker, such as Forex.com, another top ECN brokerage. Similarly, the best ECN brokers in Kenya, Dubai, Malaysia, Cyprus or the Philippines might differ from the top providers in Nigeria, South Africa, India, Australia and Singapore.
You should also check the trading fees and commissions and whether you are allowed to start with a demo account. This will give you time to practice and get familiar with the platform, whether you are using MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader or another. Brokers offer different platforms so it’s important to use one you feel comfortable with.
Other considerations to take into account on your broker checklist comparison should include:
- Fast deposit and withdrawal processing times
- Providers with a history of at least two years
- Brokers with no deposit bonuses
- A decent customer support team
- Forex trading rankings
- Good online reviews
Final Word
ECN brokers bring significant benefits for forex traders in the US, UK and beyond. High levels of market transparency mean price manipulation is not possible. With that said, it’s still worth looking for regulated ECN brokers. Leverage levels, commissions, plus trading tools are also important to consider when opening a live account with an ECN broker.
FAQ
What Does An ECN Broker Mean?
An ECN broker is a technology hub, or bridge, that enables traders to place competing bids against each other or liquidity providers.
How Do ECN Brokers Make Money?
ECN brokers typically make money from fixed commissions charged to the customer on each trade. This is in contrast to market maker models that generally take their cut from the spread.
What Is The Difference Between A Market Maker And ECN Broker?
Market makers help ensure there’s enough liquidity so trades can be executed seamlessly. Market makers typically take the opposing side of a trade. In contrast, ECN brokers connect buyers and sellers, drawing on various liquidity providers. ECN brokers usually offer tighter spreads, faster order execution and increased transparency.
Who Are The Top ECN Brokers In The UK And Europe?
Among the top European ECN are Pepperstone, Axi, IG, Swissquote and FXCM. See our list of the best ECN brokers.
Is XM An ECN Broker Or STP?
XM is regulated by the FCA and offers both ECN and Straight Through Processing (STP) options. Which model you want to use will depend on your strategy, trading capital, position size and leverage requirements.