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ECN or STP ?
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AniLorak

Member Since Apr 18, 2017  813 posts AniLorak Oct 26 at 11:24
flashoutline posted:
Stick with ECN fully independent. Go to market to get a trade. Do not rely on some broker matching at their chosen rate


Yes; it’s our own decision & traders need to select their broker only based on their trading requirements only!

richard2

Member Since Oct 19, 2019  12 posts richard2 Nov 06 at 07:54
Its ECN for me anytime.

downtown

Member Since Nov 08, 2019  13 posts downtown Nov 08 at 07:24
ECN for sure.

AdrianG001

Member Since Apr 02, 2018  10 posts AdrianG001 Nov 20 at 15:01
STP (Straight Through Processing) (or NDD (NoDealingDesk))
means the broker will route your orders directly to the Liquidity provider, were the Liquidity provider becomes a Broker of the Broker and takes the other side of your trades, that does have the effect that liquidity is usually not an issue, but fills may differ some times.

ECN (Electronic Communication Network)
means the broker will send your order to a liquidity network build of multiple brokers, banks and other liquidity providers.

the Other side of your trades can be taken by other clients, or anyone that is connected to the same network, this has the effect that spreads are variable, but fills are far more reliable.

also, ECN execution has the advantage that you can manage fills more detailed, you have Depth of market (because you are in a real market) and it's usually more stable.

however the platform you executing on can make a major difference, if you as example using Metaquotes Software (MT4 / MT5) there is no such thing as ECN (even if claimed) the whole software suite is not designed and unable to manage partial fills or market management tasks, so using this platforms you always on a STP or DealingDesk system

the ECN is achieved by a ECN-Bridge which will send your STP order to an ECN pool, that's why you can get re-quotes even on an ECN connection because the initial command from your platform is done via STP where STP is not towards a bank but towards the ECN Bridge.

EDIT: there is no Better or worse when it comes to STP vs. ECN, both systems do have advantages and disadvantages, it is more about your trading style and size. STP as an example has a major advantage that the broker does know the liquidity before they send or while they do it. that can be an asset if the broker is on your team.

ECN on the other side allows for much larger Liquidity as it operates in a pool, but that can have the effect that you trade against clients of the same one (it almost always is like this) however that in itself has again an advantage since you get faster fills and less slippage.

AmDiab

Member Since Apr 18, 2017  590 posts AmDiab Nov 30 at 08:38
downtown posted:
ECN for sure.


Same from me; but my main point is: regulated broker. There is no way with a non-regulated Forex broker to trade with.

pezza55

Member Since Dec 02, 2019  4 posts pezza55 Dec 02 at 14:08
so is ecn better for 3rd party applications then rather than regular trading ?

MShor1

Member Since Dec 02, 2019  1 posts MShor1 Dec 02 at 14:48
ECN is better every time !

blackbridge

Member Since Sep 23, 2019  7 posts blackbridge Dec 02 at 14:53
AdrianG001 posted:
STP (Straight Through Processing) (or NDD (NoDealingDesk))
means the broker will route your orders directly to the Liquidity provider, were the Liquidity provider becomes a Broker of the Broker and takes the other side of your trades, that does have the effect that liquidity is usually not an issue, but fills may differ some times.

ECN (Electronic Communication Network)
means the broker will send your order to a liquidity network build of multiple brokers, banks and other liquidity providers.

the Other side of your trades can be taken by other clients, or anyone that is connected to the same network, this has the effect that spreads are variable, but fills are far more reliable.

also, ECN execution has the advantage that you can manage fills more detailed, you have Depth of market (because you are in a real market) and it's usually more stable.

however the platform you executing on can make a major difference, if you as example using Metaquotes Software (MT4 / MT5) there is no such thing as ECN (even if claimed) the whole software suite is not designed and unable to manage partial fills or market management tasks, so using this platforms you always on a STP or DealingDesk system

the ECN is achieved by a ECN-Bridge which will send your STP order to an ECN pool, that's why you can get re-quotes even on an ECN connection because the initial command from your platform is done via STP where STP is not towards a bank but towards the ECN Bridge.

EDIT: there is no Better or worse when it comes to STP vs. ECN, both systems do have advantages and disadvantages, it is more about your trading style and size. STP as an example has a major advantage that the broker does know the liquidity before they send or while they do it. that can be an asset if the broker is on your team.

ECN on the other side allows for much larger Liquidity as it operates in a pool, but that can have the effect that you trade against clients of the same one (it almost always is like this) however that in itself has again an advantage since you get faster fills and less slippage.



Thank you for clarifying this is really useful information

Smith2525

Member Since Mar 15, 2019  14 posts Smith2525 Dec 02 at 23:37
Easy, ECN for me

villaintrader

Member Since May 10, 2019  6 posts villaintrader Dec 03 at 13:43
ECN

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