Safe and Trusted ECN Account

For a trustworthy broker, look at the regulations and how long they have been established. Ensure the broker is officially regulated, especially by reputable bodies such as the FCA in the UK, ASIC in Australia, CFTC/NFA in the US, CySEC in Cyprus, etc. For how long they have been established, it’s best to choose one that has been around for at least 5 years.

Whether a broker is ECN or not can also be seen from the spread (raw or not), liquidity providers, and the platform provided.

For recommendations on ECN brokers, you can visit this page.

Thanks

@ bagus irawan :
As far as I know, a trusted ECN broker is one that is transparent in terms of spreads and commissions as well as its liquidity providers. In addition, the broker should also be regulated by a credible body.

We would also like to inform you that if you use the Metatrader 4 platform, it will not be a true ECN because the Metatrader 4 platform does not support ECN. A true full ECN requires at least a broker that offers MetaTrader 5, cTrader, or another platform that allows orders to be forwarded directly to the market.

Hope this helps.

Trading an ECN account is not much different from trading in other accounts. This account can have swaps, widen spreads during price runs or other events. ECN type brokers truly participate in the market just like large banks functioning as liquidity providers, or by bringing together sellers and buyers among its users (not dealing desks).

Thanks.

An official broker is a broker registered with a specific regulatory body. In Indonesia, for example, this would be a broker regulated by Bappebti (MIFX, Finex, Didimax, etc.). Abroad, an official broker can be regulated by the FCA in the UK, ASIC in Australia, the CFTC in the US, etc. A complete list of international regulations for forex brokers can be checked here.

Thanks.

What are some examples of relatively safe regulatory bodies?

Is CySEC also included? Because I often see many brokers regulated by CySEC.

Please explain.

Thank you

CySEC is the regulatory body of Cyprus. Basically, this regulator is actually included as offshore because of the Cypriot state territory which is located offshore. However, in terms of quality and popularity, CySEC is quite reliable because it falls within the European scope and has a number of strict policies regarding leverage and bonus procurement.

Examples of CySEC regulated brokers can be checked here.

@ Oni :
As far as I know, the regulatory bodies that are widely recommended and trusted as credible are:

• CFTC (Commodity Futures Trading Commission) - United States
• NFA (National Futures Association) - United States
• SEC (US Securities and Exchage Commission) - United States
• FCA (Financial Conduct Authority) - United Kingdom
• ASIC (Australian Securities & Investments Commission) - Australia
• SFC (Hong Kong Securities and Futures Commission) - Hong Kong

For beginners, it is good to choose a broker that suits your financial condition and meets your expectations in terms of facilities. If it turns out not to be regulated by a credible body, you can choose one that is offshore regulated and has more than 5 years of experience. For security, make sure the prepared capital is not too high and make regular withdrawals to anticipate unwanted things.

Thanks.

@ nur cholis :
If you are just trying out trading with small funds using any broker, it will be safe, because usually fraudulent brokers will target those with relatively large funds, unless the broker suddenly disappears. In my opinion, choose the one with easy requirements and the most benefits, such as minimum deposit requirements, account types (mini, micro) and also leverage options.

Brother @martin thanks for the answer. So if you still want to trade small and are still in the learning phase, choosing a broker can be based on preference as long as the regulation is good, right?

But I often hear that in dishonest brokers, traders' profits are often limited? Is it true that if a trader keeps winning, they risk being cheated by the broker?

@ Nur Cholis :
Yes, Sir, if the deposited funds are still small, any broker is fine as long as they are regulated, whether the regulator is NFA, CySEC (Cyprus) or from the Republic of Montenegro, it doesn't matter, your funds are most likely safe unless the broker suddenly disappears. But if your account has grown and the balance has increased a lot, quickly move it to a broker with a more credible regulator and one that is recognized by forex traders worldwide.

Regarding fraudulent brokers, there are those who limit trader profits by, for example, when a trader wants to close a profitable position, the server often requotes, often hangs, etc. Usually brokers in the market maker category monitor clients who are often profitable. If there are such symptoms, it is safer to withdraw and move to another broker...

As a reference for choosing a broker, you can read at:

• Guide to Choosing a Good Forex Broker
• How to Tell Honest Brokers from Scammers

FXTM Broker was founded in 2012 by one of the founders of the veteran forex broker Alpari, Andrey Dashin. Perhaps because of this, this forex broker immediately stood out among other newcomers.

In terms of regulatory guarantees and trading conditions, FXTM is among the leading ones despite its young age. And yes, the company is indeed verified and regulated by the FCA.

Thanks.

Because regulatory standards of the FCA differ from those of other countries' regulators. It's that simple.

The FCA as the UK regulatory body is well known for having strict oversight, being firm in taking action against defaulting brokers, and being able to provide compensation to clients according to procedure. Meanwhile, other countries' regulators have not been as tested and tend to be easier to obtain licenses from.

That's why licensed brokers in the UK are generally considered more credible than brokers outside the UK. Even if a brand has company branches in various countries, the security standards are not necessarily the same.

Thanks.

There are many brokers offering ECN accounts. The best size is very relative and needs to be objective. HotForex Broker currently offers a Zero Spread account, which appears similar to an ECN account, with commission monitoring. Because ECN accounts generally have commissions. And other brokers that offer this type of account are FXOpen and LiteFinance.

It should be considered that all ECN accounts

• Have commissions.
• Spreads can widen suddenly.

Thanks.

I checked the link suggested by brother rachmat above.
What I see is that the minimum deposits are quite high for ECN accounts?
Is there a specific reason why ECN accounts require a large deposit?

That is indeed a rule from the broker in question. Usually because ECN is an account intended for serious traders (not beginners/trying things out). It could also be as compensation for the broker's costs of connecting orders to the market with ECN technology.

Thanks.

@ Miftahul :
From the information we received, that is correct, perhaps Alpari UK management is more professional. Their clients are not only retail traders but also professionals and financial institutions.

A zero spread account means there is no spread when opening/executing trades. All ECN accounts can usually provide zero spreads, but not all zero spread accounts can be said to be ECN. Market maker brokers can provide zero spread accounts and offset the cost by charging a fairly high commission.

Conversely, ECN accounts are certainly zero spread because pricing follows market prices. Commissions will still exist, but are usually still within a reasonable range (no more than 3.5 USD per standard lot).

Read also: Where to Find ECN Accounts with Low Commissions

Thanks.

@ Novrizon:
As far as I know, FXTM opening starts from the Asian session at 00:00 GMT or 07:00 WIB.

@ xander:

Some forex brokers do offer copy trading or trading based on provided investment managers, of course with certain regulations.

Examples of brokers offering this scheme are eToro, Exness, FXTM, IC Markets, and many more.