ECN brokers

Beginner Questions
1

I am learning how to trade currencies. What are some ideas where I can get objective information to evaluate ECN brokers?

Thanks,

ejtrader

2

Learn to trade first, worry about that later.

3

It is my understanding the better way to go is to choose a company and demo trade for a period of time, therefore you have to choose someone to work with.

4

Exactly what purplepatch said. Learn to trade first and worry about that later. Thats means just that look for a broker learn to trade there platform and how to trade and you will learn what you need to know about your broker as time goes one and you learn to trade. Once you learn to trade you will know what you are looking for in a broker and if this broker you are using to learn is worth it or not.

5

Ok, I am known for just telling things as they are and expecting people to take things at face value, but since you elaborate, I feel it’s only fair that I elaborate too.

There are a few good brokers around, I use Oanda, I don’t care if they are ECN or not, I get my fills instantly I hardly ever have a problem, it does what it says on the tin.

Once you’ve learned to trade profitably, it wont take you long to see if the broker you are using is ripping you off, and in the process of going live you will need to start with amounts you can afford to loose, and you’ll be able to tell quite quickly if your broker is doing you justice or not.

It’s a case of swings and roundabouts, a poor ECN broker may not be as good as the best MM, but this will be a small part of your trading plan/career/…

6

First off, thanks for taking time to educate a newbie. How does one determine if a broker is “ripping you off” as compared to a non dealing desk which is a pass through?

ejtrader

7

Your trades dont get executed when you want, well maybe not just ripping you off, but poor performance can kill you.

8

If one is trading via demo accounts, whether dealing or non dealing desk, is the level of broker performance the same as live accounts?

ejtrader

9

no, some are better some not as good, but you won’t go far wrong with Oanda and you have the choice of MT4 or their proprietary trading sofwtare which although limited in some areas has advantages.

10

Thank you

Sent from my iPad using BabyPips

11

oanda i tested, their spread is a bit too high isn’t it.

i recommend pepperstone and ic markets if you want really tight spreads. both are ECN and have solid reviews. or PFD NZ is offering 0 pip spread on eur, and 1 pip for a winning trade.

im just on demo atm. i totally agree with comments - its all about learning to trade, but get a good demo platform with good spread as well otherwise u’ll be losing easily

12

Do you have a screen shot of said 0 pip spread. I fail to see any broker that makes money off spreads offering 0 pips on the spread. Sure I have herd of .? of a spread but never 0. Even a ecn has to pay something for the transaction so there is noway they will do it for you for free. That just not good for business.

13

Pepperstone for example have various hours over the day where their EURUSD spread is 0; most times though it is between 0.1 and 1.2, depending on liquidity.

Since ECN brokers charge commissions and don’t earn on spread, this is realistic.

Cheers,
O.