How do you know whick brokers are real ECN brokers?

[Jason_Rogers]

Thanks for the contribution to the thread but STP (Straight through processing) is different from True ECN. STP is you passing the orders to market maker, ECN is a direct feed into the Interbank market pool or market makers. It is the purest plug in. I am sure FXCM has no DOM. However you are correct on NDD.

I do know brokers who despite having STP models, still reserve this for their Book A clients usually winners and Book B will still get passed on to a dealing desk, this is normally evident if the broker has fixed spreads, ECN spreads are usually variable and normally are very low. I think your spreads are around 2.4 pips on majors I haven’t seen them vary…

I believe BabyPips School has a map of exactly how this works on their market structure section.

The term ECN is used ambiguously when it comes to retail forex. That’s why FXCM prefers to use the term NDD.

While the term ECN has gained currency (pun intended) in retail forex trading of late, I feel it should be reserved for the electronic communication networks used by banks and other institional level market participants to trade amongst each other, not with retail traders. The link you posted previously from Wikipedia says as much: [I]“FX ECNs like Currenex, Bloomberg Tradebook (an affiliate of Bloomberg L.P.), 7Hedge FX ECN, Hotspot FX, 360T, FXall & BAXTER Financial Services Ltd with Currency Dealing provide access to an electronic trading network, supplied with streaming quotes from the top tier banks in the world.”[/I] source: Electronic communication network (Note: We do offer institutional forex trading solutions through our FXCM Pro division.)

I am sure FXCM has no DOM. However you are correct on NDD.

FXCM Active Trader accounts have the option of trading on a platform that allows you to see depth of market. It’s worth noting that these accounts execute orders using the exact same liquidity pool as our retail NDD clients. The only difference is that the minimum to open an Active Trader account is 25k, so these accounts trade with a lower pip markup/commission.

I do know brokers who despite having STP models, still reserve this for their Book A clients usually winners and Book B will still get passed on to a dealing desk, this is normally evident if the broker has fixed spreads, ECN spreads are usually variable and normally are very low. I think your spreads are around 2.4 pips on majors I haven’t seen them vary…

You have a live account with us, so you will be able to confirm just by looking at the prices on your FXCM platform for just a few seconds that our spreads are variable :57:

What’s fixed is the pip markup we add to the bid and ask prices. Unlike other “ECN” type brokers, FXCM doesn’t add a commission on top of our spreads, so this fixed pip markup acts as our commission.