ECN, which stands for Electronic Communication Network, really is the way of the future for the Foreign Exchange Markets. ECN can best be described as a bridge linking smaller market participants with its liquidity providers through a FOREX ECN Broker.
This linkage is done using sophisticated technology setup named FIX Protocol (Financial Information Exchange Protocol). At one end, the broker obtains liquidity from its liquidity providers and makes it available for trading to its clients. On the other side, the broker delivers clients orders to Liquidity Providers for execution.
The ECN automatically matches and executes the orders requested, which are filled at the best available prices. One of the extra benefits of ECNs, over and above the existing legacy online trading venues, is that the networks can be accessed and are often more efficient during after hours trading, which is a particularly relevant benefit for FX transactions.
ECNs are also highly efficient for traders operating EAs (expert advisors) for automated trading, as the speed of execution is accelerated. Certain ECNs are configured to serve institutional investors, others are designed to serve retail investors, others are compiled to cross over between both sectors, ensuring that retail traders can experience similar levels of quotes and spreads to that of institutions.
An ECN broker benefits from commission fees per transaction. The higher trading volume the brokers clients generate, the higher the brokers profitability.
That unique trading model ensures ECN brokers never trade against their clients and that ECN spreads are much tighter than those quoted by standard brokers. ECN brokers also charge clients a fixed, transparent commission on every transaction. Trading with FXCC as part of the efficiency delivered by an ECN, results in lower fees, whilst there is the added benefit of additional trading time availability. Because we gather price quotations from several market participants, we are able to offer our clients tighter bid/ask spreads than would be otherwise available.
ECN trading activity is anonymous, this allows traders to take advantage of neutral pricing, ensuring that real market conditions are reflected at all times. There is no bias against the clients direction based on either: forex trading strategies, tactics, or current market positions.
FXCC-ECN clients can trade forex instantly, taking advantage of live, streaming, best executable prices in the marketplace, with immediate confirmations. The FXCC-ECN model prevents interference by price makers, therefore all FXCC trades are final and confirmed as soon as they are dealt and filled. There is no dealing desk to intervene, there are never any re-quotes.
The FXCC ECN model offers clients the opportunity to trade in a global liquidity pool of regulated, qualified and competitive financial institutions.
Through the use of FXCCs API, clients can easily connect their trading algorithms, expert advisors, models and risk management systems to the live market data feed and the price matching engine. FXCCs live, neutral, executable market data includes the most competitive bid and ask prices available at any given time in the market. As a consequence the trading process remains reliable and consistent when either back testing trading models, or for live trading.
FXCC differs from a dealer or market maker as FXCC does not control the bid/offer spread and therefore we cannot provide the same bid/offer spread at all times. FXCC offers variable true spreads.
On an ECN, clients have direct access to market prices. Market prices fluctuate reflecting the supply, demand, volatility and other market conditions. The FXCC-ECN model enables clients to trade on tight bid/offer spreads, which can be lower than one pip on some majors in certain market conditions.
FXCC brand is an international brand that is authorized and regulated in various jurisdictions and is committed to offering you the best possible trading experience.
FX Central Clearing Ltd ( is regulated by the Cyprus Securities and Exchange Commission (CySEC) with CIF license number 121/10.
Central Clearing Ltd ( is regulated by the Vanuatu Financial Services Commission (VFSC) with license number 14576.
RISK WARNING: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves substantial risk of loss. It is possible to lose all the initial capital invested. Therefore, Forex and CFDs may not be suitable for all investors. Only invest with money you can afford to lose. So please ensure that you fully understand therisks involved. Seek independent advice if necessary.
FXCC does not provide services for United States residents and/or citizens.