ECN Broker

Also called: ECN

Electronic Communication Network broker — routes client orders directly to a network of liquidity providers, no dealing desk.

True ECN brokers earn from commission and never trade against client orders. Spreads are ‘raw’ (close to interbank) and commission is added on top. Best execution model for scalpers and high-volume traders.

Watch for fake-ECN brokers — labels are unregulated. Check whether the broker is order-execution only, with no internal market-making.