I’ve been dabbling in FX trading, mainly holding positions for a few hours, somtimes a day or two, and from what I’ve seen, ECN platforms seem like the clear winner for day trading.

I’m pulling in spreads averaging around 0.3 pips on USD/JPY (won’t name the broker), but when I trade with a market maker (no naming and shaming here), the spreads often climb well above 1 pip on the same pair.

Sure ECN platforms charge a commission, but when you factor in the speed of execution, my overall trading costs are way lower.

I’m curious if other day traders here are also using ECN providers? Would love to hear thoughts.

Reply

Topic

[Christian HarrisParticipant]

ECN brokers are generally better for day traders who need fast execution, tight spreads, and transparency.

If you scalp or make many trades daily, you should benefit from lower costs in the long run using an ECN broker, even with the commission fees.

ECN brokers are also less likely to have re-quotes, but slippage (getting a different price than expected) can still occur in volatile markets as the price fluctuates based on market conditions.

Reply

[Time2Trade]

Yh man that’s what I’m seeing. Sticking to an ECN provider is feeling like a no-brainer for my shorter term trade setups.

Reply

[James BarraModerator DayTrading.com Team]

Hi Time2Trade,

You may want to check out DayTrading.com’s pick of the best ECN brokers.

Reply

[John J]

Yup, ECN platforms are generally the way forward for active trading setups like day trading. You get direct access to multiple liquidity providers, better pricing, more transparency and they don’t trade against you like market makers.

I’ve long preferred ECN brokers for day trades for their superior pricing and precision control over trades.

Reply

[Steve]

You’ve got to think about it from the broker’s side. Many non ECN firms are taking the other side of your trade and have line of sight over what you’re up to from your stops to account balance. They make money when you lose, ECN firms just want their commission.

For really short term strategies like scalping especially I see better pricing in the long run by using an ECN broker.

Reply

[Author]

Replies