[PrivateFX]

Originally Posted by Tess

No. It's a totally different option to trading via a dealing desk (bucketshop) outfit, which the traditional forex brokers are. The wiki article explains what the ECN engine is & does.

Main benefits in utilizing an ECN or Prime Broker execution model are obviously geared toward costs & execution.

Traditional FX brokers such as FXCM, Gain, Oanda, gft etc operate a dealing desk regime. In other words, if you're trading with 'fixed spreads' & no commissions, then your broker controls the playing field.

You're not only trading against your fellow market participant, but also the broker desks.

They're basically controlling every aspect of your deal, from entry to exit. If they don't want you to leg into an advantageous position at the point in which you would like, then they'll restrict you.

They usually adopt tricks such as re-quoting a different price to the one you requested - blaming market movement or non-availabilty of price LOL...or blatantly freezing screens and/or ignoring requests to trade.

They'll frequently slip & shade prices by a few pips at key levels, coincidently just as you're seeking to exit or enter.

The costs (over the medium term) of trading with these characters are horrendous. You're never executing ina fair & even marketplace. You're trading their prices, prices which they control & can manipulate at any time they choose!!

An ECN facility is everything the traditional FCM isn't.

well said. It gives no reason to play the bucketshop game. I can't see myself forking over my hard earned in a trading account that can easily be manipulated by a bucketshop broker. I don't understand why people even bother to trade with bucketshops. They are no better than just going to a casino and gamble away lol