ECN Account Meaning

Great Question Brenda !

ECN is an acronym for Electronic Communication Network and with this account, your broker does not trade against you.

When you place your trade, your broker uses the ECN infrastructure such as optic fiber cables with low latency to send your order to liquidity providers who will be the ones to trade against you. The end result is you get lower spread on each transaction.

Since brokers do not make a lot of money from spreads charged to ECN accounts, they make up for this by charging a flat commission per trade you make.

ECN accounts are ideal for those using trading robots to execute high volume trades because the developers of these robots usually specify that they work with very tight spreads,