What’s the difference between ECN and STP brokers in Forex Trading?

ECN brokers typically charge a fixed commission while STP brokers make their money from applying a markup to the spread offered by their liquidity provider. While STP providers pass orders directly to their liquidity providers, ECNs have their own system where all their liquidity providers, traders, and other clients can trade against each other. True ECNs can show their clients the DOM (depth of market) so that their clients can see liquidity in real-time.

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Risk Disclaimer:CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Currency, crypto, stock or other trading finance instrument trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

What’s the difference between ECN and STP brokers in Forex Trading?

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