A type of Non-Dealing Desk broker that connects client orders to an electronic trading network of liquidity providers (banks, other brokers, etc.). An ECN broker does not trade against you; it simply matches buyers and sellers at the best available prices on the network. This often results in very tight variable spreads (even down to 0 on majors at times), but ECN brokers typically charge a commission per trade. Because pricing comes from many participants, you may see market depth and can sometimes get positive slippage (price improvements). ECN execution is generally favored for forex robots, especially scalpers or news-trading EAs, as it offers fast execution and transparent pricing. (Note: ECN brokers are by definition NDD brokers, and “ECN” is often used loosely in broker marketing. Genuine ECN accounts usually require higher minimum deposits.)

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