Electronic Communication Network brokers or simply ECN brokers are known to be the most popular type of brokerages in the world which have gained a lot of attention in India. An ECN forex broker offers its clients a marketplace where two parties which are traders and market makers are allowed to place bids and compete with each other. This style of trading is also found in the hybrid ECN/STP execution model. The technology utilised by ECN forex brokers has been developed to act as a bridge between retail forex traders and liquidity providers. Execution takes place directly between the two parties in a straightforward way in the case of the best ECN forex broker in India.
How do ECN Forex Brokers Work?
ECN brokers simply match the requested trading order of buy/sell at the best price for market participants. ECN brokers are mostly preferred because there is no room for misunderstanding between the trader and their broker during an ECN execution as the interbank connectivity applies transparent trading conditions for both of them.
Some reasons why ECN forex brokers are getting more popular among Indian investors are:
- ECN forex brokers are regulated entities. Indian traders should go check information on SEBI’s website https://www.sebi.gov.in/ before dealing with ECN forex brokers.
- ECN brokers with confirmed regulatory statuses allow small retail markets to efficiently compete with significant financial institutions in a fair manner.
- One of the most prominent advantages of trading with an ECN broker is to make the most out of the fluctuating prices on chosen forex pairs.
- It is one of the most liquid markets in the world which means that traders could experience a better price and even better trading conditions with an ECN forex broker instead of the standard.
Things to Know Before Choosing an ECN Forex Broker
Many beginner-level forex traders feel a bit overwhelmed when it comes to their experience with an ECN forex broker because it functions differently from brokers that use common market-maker or dealing desk execution model. So in order to help with the confusion that comes to investors when selecting the best ECN forex broker in India, consider the following:
- It helps to remember that selecting an eligible ECN forex broker is not so different from picking any broker. You will have to look for features that work for you similar to when you are finding any broker.
- The best ECN forex brokers are the ones that are based in the same country as their users. This eliminates the chances of coming into contact with scam brokers.
- Checking the regulatory compliance and ensuring the safety of your funds is mandatory when you are determining which ECN forex broker to go for.
Following is an impartial list of the best ECN forex brokers in India to help you make the right choice.
6 Best ECN Forex Brokers in India
1. Pepperstone
Pepperstone was established in 2010 and it currently has headquarters in Australia, the U.K., and Dubai. It is probably one of the most renowned ECN forex brokers in the world that operates with all the necessary regulatory compliance. Indian traders would prefer using Pepperstone due to the following reasons:
- Pepperstone’s platform is based on an innovative technology allowing blazing fast and frictionless execution of orders with maximum leverage.
- The razor account is known for its extremely low cost of trading experience which is heavily competitive in the market.
- While using this platform, traders get to utilise their technically advanced tools like Smart Trader Tools and cTrader Automate which makes it easy to familiarise with the UI and various functionalities provided by Pepperstone.
Visit Pepperstone for more information.
2. FXTM
Found in 2011 and registered by three top-tier regulatory agencies like CySEC, FCA, and FSCA, FXTM is considered among the best all-rounder forex broker. Despite having a withdrawal fee, this broker serves millions of traders and executes even more forex trades thanks to its state-of-the-art platform. Reasons to become FXTM’s loyal customer are as follows;
- Being a trusted and regulated broker for years allows FXTM to offers its clients with negative balance protection feature.
- FXTM completely segregates client’s funds from the operational funds to ensure your funds are safe, according to the information on its website.
- Users get to choose from 6 different types of trading accounts, each comes with a specific objective and functionalities related to transactions, assets, and trading sizes.
Visit FXTM for more information.
3. LiteForex
According to the official website of LiteForex, their ECN forex trading platform is more suitable for professional traders. ECN forex account on LiteForex comes with increased quoting precision that helps investors a lot. This brokerage company has been in the industry since 2005 which has now developed into reputed and regulated forex & CFD broker. Some features of ECN forex accounts on LiteForex includes:
- LiteForex offers MetaTrader 4 and MetaTrader 5 trading platforms to its users in a safe and regulated environment.
- LiteForex does not provide an STP account through the official platform. Instead, it allows users from various supported regions to open an ECN or a DMA account.
- Many long-term users of this broker say that their forex ECN account provides them with high annual percentage on unused funds.
Visit LiteForex for more information.
4. FP Markets
FP Markets has a stronghold in Australia where it is registered and known as one of the best forex/CFD brokers regulated by the Australian regulatory body ASIC. Prime reasons for FP Markets’ popularity are the range of tradeable assets provided by this broker and its maximum leverage that goes up to 500:1. The following reasons describe various features possessed by FP Markets:
- This broker has implemented a unique type of ECN/STP execution model for its users to allow them to choose ECN for high-speed executions or STP to experience natural spreads instead.
- FP Markets is great for those who wish to scalp and hedge using MT4 or MT5 trading platforms while experiencing swift executions.
- Tons of supplementary tools are available through FP Markets that make users’ trading experience easier and more rewarding in countries where this broker is authorised to operate.
Visit FP Markets for more information.
5. Olymp Trade
Olymp Trade is a name easily recognised by many Indian investors due to its market-oriented advertising. Users of Olymp Trade find it to be one of the easiest ECN forex brokers due to its user-friendly UI and tons of features. Some of its specialities are as follows:
- The online trading platform is regulated by the international IFC and has been functional since 2014. This is why most forex traders choose Olymp Trade.
- Olymp Trade offers an ECN account on fan favourite trading platform MT4 with a maximum leverage of 1 to 500.
Visit Olymp Trade for more information.
6. XM
A subsidiary of Trading Point Holdings Ltd., the XM Global Limited is a regulated (by CySEC, FCA, ASIC, and DFSA) ECN forex broker which has several million users worldwide. XM offers around 1000 different financial instruments to trade using MT4 or MT5. Below are some characteristic features of XM.
- Clients of this particular ECN forex broker enjoy leverages ranging from 1:30 to 1:888 and the lowest minimum deposit amount which is not mandatory.
- XM provides its registered traders to use MT4, MT5, and XM WebTrader freely to the best of their abilities.
- This broker is also known for offering a vast amount of educational content in the form of guides and webinars with experts for beginners who are interested in knowing more.
Visit XM for more information.
The aforementioned details can easily help one find out the best ECN forex broker in India.