An ECN broker (Electronic Communication Network broker) is a type of Forex broker that connects traders directly to other market participants—such as banks, hedge funds, and other traders—for order execution without any dealing desk intervention.
ECN brokers operate by aggregating bid and ask prices from multiple liquidity providers in real time and routing client orders directly into this network. Unlike market makers, ECN brokers do not take the opposite side of your trade, which eliminates conflict of interest.
Key features of ECN brokers:
| Feature | ECN Broker | STP Broker | Market Maker |
|---|---|---|---|
| Execution | Direct via ECN | Straight-through to LPs | Internal (dealing desk) |
| Spreads | Raw, very tight | Variable | Fixed or variable |
| Commission | Yes (per trade) | Sometimes | Usually none |
| Conflict of Interest | None | Low | High |
| Requotes | None | Rare | Possible |
You place a buy order for EUR/USD. The ECN broker matches your order with a sell order from a liquidity provider or another trader within the ECN network, offering the best available ask price—no markup, no delay.
STP Broker, Market Maker, Liquidity Provider, Raw Spread, Slippage, Execution Model
Broker Types / Trade Infrastructure
ECN brokers offer institutional-grade execution—but only if your strategy can handle tight spreads with commission. Ideal for scalping, news trading, and large-volume setups.
