ECN Brokers

What are ECN Brokers Forex?

ECN Brokers are Brokers who automatically match trading orders to sell or buy via ECN or Electronic Communication Network which is a technology bridge that links retail Forex market participants or traders to liquidity providers.

So ECN is a non-dealing desk bridge with straight-through processing execution that enables execution in a direct connection between the parties via automated network.

ECN brokers usually match order at the best available price from available market participants or liquidity providers, while at some time EUR USD spread maybe even 0 pips.

• Apart from the competitive trading costs and due to its functions ECN technology results in extended trading time, along with high efficiency for automated trading and a variety of strategies suitable for both retail or institutional traders.
• ECN execution does not cause any misunderstanding between the trader and the broker due to interbank connectivity with transparent trading conditions.
• Depending on the strategy ECN spreads from 0 pips does not necessarily mean lower trading costs at times it is even higher than non ECN Brokers offer, as for particular strategies fixed or variable spread as a trading fee is a much better option.
• ECN Brokers and technology indeed more suitable for experienced traders, professionals or those that operate bigger sizes. While the Standard account and market maker execution model might be a good option for beginning traders (Also check Best Forex Brokers for Beginners), for some strategies and regular size traders.

🏦 Spread	Low spread from 0 pips
📊 Commission	Yes
🔒 Rejection	No
💰 Re-Quotes	No

Best ECN Forex Brokers

Here are the selection of Best ECN Brokers by category that are Regulated Forex Brokers with some of the best ECN trading conditions, trustable standards of operation and transparent conditions.

• BDSwiss – Best Overall Forex Broker 2022
• BlackBull Markets – Lowest Spread Forex Broker 2022
• FP Markets – Best Forex Broker for Beginners 2022
• Pepperstone – Best MT5 Forex Broker 2022
• HFM – Best MT4 Forex Broker 2022

What is ECN fee?

The trading Brokers offering ECN Accounts and connection usually offer an interbank spread from 0.0 pips and charge a fixed commission per lot as a trading cost or fee.

What is a true ECN?

With its popularity and a trend of ECN trading there are many brokers stating its Brokers ECN Forex status. However, the only true ECN Brokers are brokers with the confirmed regulatory status and strong legit obligations.

ECN vs Standard Account

Standard Account and ECN account fee structure is the main difference, Standard Accounts is no commission account with fixed or variable spread basis. While the ECN works with commission fee model, s ECN costs split between the interbank spread from 0 pip and commission charge per lot.

ECN Forex Brokers who accept US Clients

Traders from the United States are able to trade only with Forex brokers registered with CFTC or NFA in US. Some regulated ECN brokers for US are Forex.com, IG and ATC Brokers.

FOMC meeting recap: Powell not hawkish enough, traders price in 50bps of cuts by EOY

 Broker: FOREX

Posted At: 2023-02-28

Today’s Fed meeting was always going to be more about what Jerome Powell and Company were saying rather than about what they were doing…

FOMC monetary policy decision and statement

…After all, the market had fully priced in a 25bps interest rate hike to the 4.50-4.75% range, and that’s exactly what Jerome Powell and company delivered.

Quickly turning our attention to the statement though, there was an unexpected inclusion: The central bank left in a key statement that “ongoing increases” in interest rates will be appropriate, suggesting that multiple interest rate hikes (March and May) are likely, whereas many traders had assumed the central bank would pause increases after the next Fed meeting in March. As Bloomberg Fed reporter Steve Matthews noted, “you can’t have one ‘increases.’”

Separately, the statement also noted that inflation has “eased somewhat” but still remains elevated, reflecting the committee’s view that there is still more work to be done to ensure price pressures have fully faded. In a final, minor tweak, the statement also acknowledged that the war in Ukraine is contributing “elevated global uncertainty,” rather than “upward pressure on inflation and weighing on economic activity.”

FOMC Chairman Powell’s press conference

Lately, Fed Chairman Powell’s press conferences have earned a reputation for “softening,” if not outright reversing, the initial market movements in reaction to the monetary policy statement.

As we go to press, Powell appears to be following that playbook, with a mix of hawkish and dovish comments [emphasis mine]:

• THE FED IS DEAD SET ON REACHING ITS 2% INFLATION TARGET.
• WE WILL ALMOST CERTAINLY HAVE TO MAINTAIN OUR RESTRICTIVE STANCE FOR SOME TIME.
• FULL EFFECTS OF RAPID TIGHTENING YET TO BE FELT.
• THE LAGS FED INTO OUR DECISION TO RAISE RATES BY 25 BPS TODAY.
• A SLOWER PACE ALLOWS US TO BETTER EVALUATE OUR PROGRESS TOWARD OUR OBJECTIVES.
• LAST YEAR, THE ECONOMY SLOWED SIGNIFICANTLY.
• CONSUMER SPENDING APPEARS TO BE EXPANDING AT A SUBDUED PACE.
• WAGE GROWTH IS ELEVATED, AND THE JOB MARKET IS EXTREMELY TIGHT.
• THE LABOR MARKET CONTINUES TO BE OUT OF BALANCE.
• INFLATION REMAINS WELL ABOVE GOAL.
• INFLATION HAS SLOWED IN THE LAST THREE MONTHS, WHICH IS A WELCOME CHANGE.
• LONG-TERM INFLATION EXPECTATIONS REMAIN STABLE.
• WE WILL REQUIRE SIGNIFICANTLY MORE EVIDENCE TO BE CONFIDENT THAT INFLATION IS ON A DOWNWARD TREND.
• IT IS IMPORTANT THAT FINANCIAL CONDITIONS CONTINUE TO REFLECT THE POLICY RESTRAINTS WE HAVE IMPOSED.
• WE HAVE YET TO SEE DISINFLATION IN CORE SERVICES OTHER THAN HOUSING.
• THE TERMINAL RATE COULD CERTAINLY BE HIGHER THAN WE ANTICIPATED IN DECEMBER.
• WE DON'T WANT TO OVERTIGHTEN, BUT WE HAVE TOOLS TO HELP US IF WE DO.
• FOR THE FIRST TIME, WE CAN DECLARE THAT A DEFLATIONARY PROCESS HAS BEGUN.
• WE’RE TALKING ABOUT A COUPLE MORE RATE HIKES TO ACHIEVE AN APPROPRIATELY RESTRICTIVE STANCE.
• TAKING PAUSES BETWEEN MOVES IS NOT SOMETHING THE COMMITTEE IS DISCUSSING.

In summary, Powell confirmed his expectation that the central bank will raise interest rates (at least) two more times, but his acknowledgement that “the disinflationary process has begun” has given traders more confidence that those will be the last two hikes of this cycle and that the Fed will be on hold midway through Q2. Meanwhile, his repeated focus on “core services ex-housing” provides a clear inflation metric for traders to watch to evaluate whether what the central bank will do in the coming months.

Market reaction

After a modest “risk off” reaction (indices down, dollar up) to the central bank’s monetary policy statement, the market has seemingly decided that Powell’s press conference was more dovish than anticipated.

The US dollar is falling by a 50-100 pips against all of its major rivals. The entire Treasury yield curve is falling, with the closely-watched 2-year yield falling by more than 10bps to 4.12% as we go to press; indeed Fed Funds futures traders are pricing in a full 50bps of interest rate cuts by the end of the year! Gold is rallying 12 points on the day to $1958 and the broad US indices are in rally mode, highlighted by a 1.5% gain in the Nasdaq 100.

The US Dollar Index getting ready for Friday’s NFP!

 Broker: FOREX

Posted At: 2023-02-28

Some investors and traders believe that the Fed may “pivot” and reduce the pace of rate hikes as soon as the November 2nd FOMC meeting.  According to the CME’s Fedwatch Tool, traders are 74% sure that the FOMC will hike rates by 75bps.  However, there is also 26% chance that the rate hike will only be 50bps.  The reasons for a possible pivot have been numerous, including BOJ intervention, BOE intervention, RBA pivot, and the National Bank of Poland pivot. Some traders believe that tomorrow’s Non-Farm Payroll data could be the key to the Fed’s next move.  Expectations are for the US economy to have added 265,000 jobs to the economy.  If the print is much lower than the expectation, chances are that stocks will move higher and the DXY will move lower (i.e. there is more of a chance of a Fed pivot, which is good for stocks).  However, it the print is much higher than expectations, chances are that stocks will move lower and the DXY will move higher (i.e. the Fed will feel more confident in its decision to hike rates aggressively).  See my colleague Matt Weller’s complete NFP preview here.

As such, the NFP release tomorrow could be one of extreme importance.  Often before an important event that could affect the markets, the US Dollar seems to revert to the mean.   That seems to be the case today as the DXY moves towards the middle of the range it has been in over the last 2 weeks.  The DXY has been trading higher since May 2021.  Since April 2022, it has moved aggressively higher in a channel from a low on March 31st at 97.60 to a high on September 28th at 114.78!  On September 26th, the US Dollar Index moved above top channel line, only to reverse 2 days later and move back inside.    The DXY then pulled back to the 61.8% Fibonacci retracement from the lows of September 13th to the highs of September 28th near 110.05.

Source: Tradingview, Stone X

On a 240-minute timeframe, the DXY is approached the 50% retracement from the highs of September 28th to the lows of October 4th near 112.42.  This is the middle of the recent range where price often gravitates to before a big event, or a reversion to the mean.  If price moves above the 50% level, the next resistance is at the 61.8% Fibonacci retracement level from the same timeframe at 112.97. Above there, price can move to the top trendline of the channel near 113.90, then the recent highs at 114.78.  However, if the DXY moves lower, the first support isn’t until the October 4th lows at 110.06.  Below there, price can fall to the bottom trendline of the channel near 109.25, then the lows of August 26th and September 13th, near 107.59.

Source: Tradingview, Stone X

With the US Non-Farm Payroll due out on Friday morning, the DXY is moving to the 50% retracement level of the September 28th highs to the lows of October 4th.  Unless there is a surprise in the markets before then, DXY is likely to sit near these levels until the data is released.  However, after the release, the next move for the US Dollar will be dependent on whether or not the market believes the Fed will pivot.

EUR/GBP intraday: the downside prevails as long as 0.8788 is resistance

 Broker: KVB Kunlun

Posted At: 2023-02-28

Our pivot point is at 0.8788.

Our preference: the downside prevails as long as 0.8788 is resistance.

Alternative scenario: the upside breakout of 0.8788, would call for 0.8810 and 0.8823.

Comment: the RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 0.8787 and 0.8796).

Supports and resistances:

0.8823 **

0.8810 *

0.8788 **

0.8780

0.8772 last

0.8742

0.8729 **

0.8716 *

0.8703 **

Head of Research at TRADING CENTRAL: Rémy GAUSSENS

TRADING CENTRAL is governed by the Code of Conduct of ANACOFI-CIF, an association approved by the Autorité des Marchés Financiers and registered with ORIAS under number 17005458.

Written on 02-28-2023 at 12:14 UTC+1

Price reference: 0.8772 last known on 02-28-2023 at 12:14 UTC+1

Investment horizon: INTRADAY

USD/SGD intraday: as long as 1.3462 is support look for 1.3538

 Broker: KVB Kunlun

Posted At: 2023-02-28

Our pivot point stands at 1.3462.

Our preference: as long as 1.3462 is support look for 1.3538.

Alternative scenario: the downside breakout of 1.3462 would call for 1.3433 and 1.3417.

Comment: the RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The pair could retrace. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 1.3484 and 1.3478).

Supports and resistances:

1.3571 **

1.3554 *

1.3538 **

1.3521

1.3485 last

1.3473

1.3462 **

1.3433 *

1.3417 **

Head of Research at TRADING CENTRAL: Rémy GAUSSENS

TRADING CENTRAL is governed by the Code of Conduct of ANACOFI-CIF, an association approved by the Autorité des Marchés Financiers and registered with ORIAS under number 17005458.

 

NZD/USD intraday: our next up target stands at 0.6210

Broker: KVB Kunlun

Posted At: 2023-02-28

Our pivot point stands at 0.6134.

Our preference: our next up target stands at 0.6210.

Alternative scenario: below 0.6134, expect 0.6107 and 0.6091.

Comment: the RSI is above its neutrality area at 50. The MACD is above its signal line and negative. The MACD must break above its zero level to call for further upside. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 0.6152 and 0.6158).

Supports and resistances:

0.6242 **

0.6226 *

0.6210 **

0.6194

0.6159 last

0.6144

0.6134 **

0.6107 *

0.6091 **

Head of Research at TRADING CENTRAL: Rémy GAUSSENS

TRADING CENTRAL is governed by the Code of Conduct of ANACOFI-CIF, an association approved by the Autorité des Marchés Financiers and registered with ORIAS under number 17005458.

Written on 02-28-2023 at 12:15 UTC+1

Price reference: 0.6159 last known on 02-28-2023 at 12:15 UTC+1

Investment horizon: INTRADAY

AETOS Capital Group extends AFC Champions League partnership with Sydney FC

 Australian football team Sydney FC has announced that they would be strengthening their partnership with retail broker AETOS Capital. The broker has been working with the Australian football team since 2017.

AETOS and Sydney FC attended an exclusive interview from a number of influential sports media in China. Councillor Mike Thomas, Senior Vice President of AETOS Capital Group, paid a special visit to Shanghai to give support to Sydney FC. Sydney FC Head Coach Steve Corica and Vice Captain Alex Wilkinson also attended the event and were interviewed by the media.

Councillor Mike Thomas said: “We are driven to meet our social responsibilities. AETOS commenced its connection with football since the 2017 AFC Champions League. 2019 is the second year that we have been the principal AFC Champions League sponsor for Sydney FC. Through AETOS’ support and investment, we help to grow football in Australia and provide the best pre-match preparation for the players to participate in these international competitions.”

Sydney FC Head Coach Steve Corica said: “We are delighted that AETOS Capital Group extended AFC Champions League partnership with us in the 2019 season. Sydney FC always strives to be the best and to win recognition from football fans in the Asia Pacific. Shanghai SIPG is a good team, while we have prepared very well for tomorrow’s game. We are looking to score lots of goals to put us in a very good position to qualify from the group to the last 16 teams.”

In the interview, Sydney FC Head Coach Steve Corica presented the No. 8 jersey to Councillor Mike Thomas, in which his surname was printed on, to express their gratitude to AETOS for its support.

AETOS is a global provider of FX and CFDs that giving its clients access to a wide range of markets including forex, metals, energy, and indices while serving their clients through corporate headquarters in Sydney Australia and serving global presence through London, UK office and customer support office in China. You can read our full AETOS review here.