Finding your way around the Forex trading market isn’t always easy, but there are a number of ways you can increase your chances of success. For the average retail Forex trader, the first step to take is finding the best Forex broker to work with. There are a range of different brokers to choose from, and once you’ve decided how you want to trade, the next step is to decide whether you want to use the services of an ECN broker or an STP broker, or stick with a more traditional market maker.
Why choose an ECN Forex broker?
Unlike other types of broker, an ECN broker gives clients the opportunity to see their orders on the trading screen and communicate with other traders and share orders. This means that investors can get the best possible trading prices, and thereby increase the chance of a profit. ECN brokers, as opposed to market makers, also make their money in a different way. Rather than making their profit via the difference in the bid and ask price of a currency pair, an ECN broker usually charges a commission; which means traders know exactly where they stand as regards the cost of trading. Another benefit of using an ECN Forex broker is that trades happen much quicker – typically, within the fraction of a second, which makes it the perfect type of broker if you prefer to use scalping.
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Other advantages include the following:
- Market liquidity is very high, which means that spreads do not widen without good cause.
- There are never any requotes or slippages.
- ECN Forex brokers offer an all-inclusive service.
There are, however, a couple of disadvantages to using the services of an ECN Forex broker. In order to open an ECN trading account, the deposit requirements are generally very high, which often puts them out of reach of the ordinary retail trader. A minimum deposit requirement of $10,000 is not unusual, and it could be even higher. We’ve already mentioned that ECN brokers charge a commission, and while in one way it can be seen as an advantage it can also be a disadvantage, as it usually costs more to trade with an ECN Forex broker.
There is also the worry of Forex brokers that profess to be ECN brokers and allow new clients to open accounts with ridiculously small amounts; so bear this in mind if you are certain you wish to trade with an ECN broker. We have gone into far more detail about the benefits of ECN trading and how to spot a fake ECN broker on one of our other pages. If you want to know more you can click on this link.
Are there any ECN brokers that offer investors the use of MT4?
MetaTrader 4, or MT4 as it is most commonly known, is possibly the most popular trading platform currently available. While a number of Forex brokers have chosen to develop their own trading software, as many as 95% of brokers choose to offer MT4. There are a number of reasons for its popularity, including convenience, security, ease of use, range of instruments, and variety of tools. It is also very customisable and can be used with Expert Advisors. No wonder we get asked on so many occasions whether it is possible to have the best of both worlds!
We’re pleased to let you know that it is perfectly feasible to find an ECN Forex broker that offers MT4 as one of its trading platforms; so let’s see if we can help you find the best ECN Forex brokers offering MT4.
Tips to help you find the best MetaTrader 4 ECN broker
If you’ve decided you want to try your luck with an MT4 ECN Forex broker, it’s time to start looking for the best one. Much like any other type of Forex broker, there are a number of qualities you should be looking out for, aside from the fact that they provide the MetaTrader 4 trading platform and offer ECN trading. Find one that offers all the following features and you’ll be well on the way to having the perfect trading partner.
- Regulation – We’ve already discussed the importance of choosing a broker that has been properly licensed and is regulated by a well-recognised regulatory body. If you choose one that has no regulation there will be far less protection, and you’ll be putting yourself at greater risk of being scammed.
- Reputation – A good reputation speaks volumes for the reliability of a broker. One with at least 2 years experience is good. as that is plenty enough time for them to have gained a good reputation.
- Standard features – These include a good selection of educational materials, a live channel that features the latest financial news, and tutorials to help you become a better trader. It is also good to look out for an ECN broker that offers some unique features that set them apart from the crowd.
- Good selection of bonuses – While generous bonuses and promotions are not the be all and end all, they can certainly come in handy.
- Reliable trading software – Time is money in the world of Forex trading, so you want the trading platform to be responsive, swift, and reliable. Of course, with MT4, you will get all three.
An MT4 ECN Forex broker will definitely be able to offer you something different, and we’d strongly recommend you give them a try. Using this type of broker will bring a wealth of new trading experiences, which is always going to be a positive thing. We have given you a good grounding by sharing some of the important details, but at the end of the day, the enjoyment and value you get from Forex trading will be all down to you. Remember that Forex trading is a journey, and you will never be able to say you know everything about it. It changes almost on a daily basis, and we will try and keep you informed and provide you with more useful information, including hints and tips.
