I’ve been wondering about this, it seems that usually the ECN’s (non-dealing desk ecn’s) require larger deposit minimums, but if I have the option to go straight to the reliables that are not retail or market makers then by all means I’d leap in. I do not have more than $1k to put in. So which ECN’s has the lowest deposit requirment?
ive been wondering the same thing too but i havent found an ECN that offers a minimum initial margin lower then 5000 bucks and they dont offer anything lower lots lower then 10k. so 1000 dollars is not a realistic start for an ECN. be very careful if you find an ECN that offers micro lots and low depsits. some MM make the claim that they are non-dealing desk. All of the true ECNs ive seen require you to deposite a high initial margin. they also dont allow you trade with anything smaller then mini lots. but you you do find something good, please let us know. im still looking, myself.
I assume the reason why ECNs require a relatively high initial deposit and offer low leverage (compared to others) is due to the type of client they are targeted.
Experienced and professional traders.
Their platforms are tailored for their style which I believe is the correct way - low risk, low leveraged trades.
ECN brokers don’t want high client turnover (blown accounts). It’s much easier (and more profitable) to retain clients than to constantly try and acquire new ones after your existing ones blow and close their accounts (suckers).
Or at least it’ll take the client a lil bit longer to blow their entire account.
Agreed. Their customer service is excellent. Use to be with OANDA but left after their 200pip-widening fiasco with NFP earlier this month. Went to EFX and so far so good. The only drawback is that the platform takes some getting used to, but they do provide training by webinar, and you can call customer service to clarify at any time.
The liquidity would be better than any of those bucketshops most people trade at. EFX is the real deal and you’re trading on the REAL 2 trillion dollar market. Unless your broker uses ECN or STP, then you aren’t really trading or affecting the real market.
I trade 10 mini-lots at a time, and I really do not trade the news as a rule. To date, the order execution is excellent, and using their level 2 screen you can actually see their liquidity in the market at any time of the day. I trade the GBPUSD mainly, and using this broker to get into a trade say a couple of minutes after news when fundamentals and technicals are in agreement is great, because many times the increased volume delivers a 1 pip spread and sometimes even zero. Rarely do I get a spread higher than 2 pips. This is however offset by commission paid which on this pair is approx. 2pips round-trip which means that you willl average 3pips per complete trade on the GBPUSD pair.
I however did trade the GBP retail sales last last Thursday morning having read a report that the numbers were to come worst than expected, minutes before I placed a sell stop limit order 15 pips below the price and got filled within a 5 pip range as specified by my order. The beauty here is, if there was not a price within my range my order would not be filled and be canceled. I hope this helps in your decision.