Are ECN brokers the same as No-dealing desk brokers?

MoneyTec Forums Beginners Forum Are ECN brokers the same as No-dealing desk brokers?

This topic contains 1 reply, has 2 voices, and was last updated by  FXGuru 6 months, 3 weeks ago.

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  • #1024

    chalithuo
    Member
    • 19

    This is a question I think many traders may have? I have come across some really confusing stuff on the internet. Some sites say that the two are the same, some place them as types of brokers, while at the same time there is that fact (I think it is) that there are only two major types of Forex brokers and the rest fall under the two categories; the No-dealing Desk and Dealing Desk (market makers).

    From the meaning of the term ECN, which means Electronic Communication Network, I think it talks more of the means through which the traders are linked to the liquidity providers. Therefore, there have to be other means through which brokers link their clients/traders to the liquidity providers.

    From research, I have seen that there is another technique which brokers, especially the No-Dealing Desk Brokers, use and it is known as the straight-through processing (STP).

    Both the STP and the ECN are different ways through which the No-Dealing Desk Brokers use to link their traders to the liquidity providers.

    Therefore, I would say, ECN Brokers are a type of No-Dealing Desk Brokers

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    #2147

    FXGuru
    Participant
    • 167

    We should simply avoid getting things complicated and try to be with a broker that’s trustworthy. I go for FreshForex, who are amazing to do with the mighty features and facilities from having low spreads to high leverage, fast execution of trades and there is no issue over slippage, re quote and many more such features making life easier.

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