Forex trading is challenging, especially ECN trading. Since there are so many ECN brokers to choose from, it can be hard to find the best one. Besides this, many traders get confused when starting, as numerous scam brokers can be seen everywhere. Although no broker is 100% perfect, you still need to make sure the one you choose is credible enough to offer good trading conditions. When selecting a broker, you need to align your trading strategies with the broker’s policy. Only then you would be able to be successful in the forex market. Hence, the best forex broker is the one that can fulfill your trading needs efficiently. Here are some tips you can follow if you are looking for the best ECN broker for successful trading.
1. Check their Trading Costs
Trading costs in forex trading comprise spreads and commissions. Additionally, the brokers earn money through them only. While some brokers charge high spreads, others charge low. For regular accounts, there may be no spread involved. However, in ECN trading, brokers may charge spreads ranging from $5 to $7 per lot.
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2. Consider their Payment Options
For traders involved in ECN trading, it is vital to give consideration to the payment options offered by the broker. Generally, ECN traders invest thousands of dollars in their accounts. Therefore, they prefer to trade with brokers that offer excellent payment options. It is best to check the time the broker takes to complete a transaction.
3. Check their Credibility
ECN traders are big influential traders who only love to deal with reliable brokers. So, they need to check the broker’s reliability by going through their regulations and market reputation. In ECN trading, obtaining a license is mandatory for the broker because it shows the capabilities, reputation and standards the broker follows. Some most trustworthy licenses are CySEC, FSB, CFTC and NFA. The best thing about these licenses is they help to protect traders against fraudulent activities. Additionally, you can check the broker’s credibility by checking if the broker has positive search traffic and high trading volume. Choosing a forex broker with two regulations is a good choice. Because if a broker has more than two regulations, it has to pay more fees to the regulators. This indirectly reduces the trading volume and income as the broker would have to charge higher commissions and spreads and offer fewer trading tools to cover up the extra cost to pay the regulators.
4. Check the Local Support
Another important factor to consider is checking the broker’s local customer support. The level of customer support can affect your trading experience considerably. All traders require advice from time to time; therefore, they need to choose ecn forex broker that offer 24*7 customer service. If you are a non-native trader, it is best to choose one that can offer support in your local language. A good broker offers support online as well as in a local office. Multiple customer support options ensure that the broker can resolve the queries of the traders living in countries where the broker does not have a representative office. Therefore, customer support through chat or call is a viable option for them.
5. Check Rebates and Bonuses
Although most ECN brokers don’t care about rebates and bonuses, they must if you want to save money. Several reliable ECN brokers can offer you attractive rebates, which can help you if you are a novice trader. You can get welcome bonuses as high as $30 whenever you create a trading account with them. Hence, there’s nothing wrong if you could get some additional incentives to what you already have!
6. Know the ECN Quotes
ECN account is considered the best for trading because it offers high transparency and cost-effectiveness. But, ECN forex accounts also have certain demerits, like their quotes can be volatile compared to STP and MM accounts. Moreover, their slippages are also higher than other forex accounts. For such reasons, it is recommended that beginners should never choose ECN accounts for trading initially.
These six tips can help you choose the best ECN broker. Furthermore. Before selecting any forex broker, check their terms and conditions. This way, you can know what to expect once you start trading with forex brokers.