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HOW DOES ECN WORK?

Hextra Prime Guide to ECN Trading

ECN stands for Electronic Communication Network and refers to an automated trading feature that links individual traders with the liquidity providers like banks, prime brokerages and retail brokerages,  and even other traders. This mechanism allows individuals with every form of trading account access to the capital markets and regardless of their balance sizes. Linking all traders, big and small, with liquidity providers directly removes the need for a middleman in your transactions. ECN trading offers you narrower spreads and better market pricing. This is because the ECN broker consolidates quotes from several participants to offer you the tightest possible bid/ask spreads. Envision it as a marketplace for broker’s clients to trade with each other, so traders like you can get the best possible offer at the moment in time.

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Hextra Prime understands what traders need, and that is the reason we provide multi-leverage, a variety of bonuses, and low spread instruments.

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Hextra Prime services available for 24/5 for clients, while our online customer support tries to assist and solve clients' requests as well as issues in a timely manner 24/5.

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Hextra Prime acknowledges the importance of compliance, thus we commit to regulations and licensing to meet financial standards.

01

Hextra Prime understands what traders need, and that is the reason we provide multi-leverage, a variety of bonuses, and low spread instruments.

02

Hextra Prime services available for 24/5 for clients, while our online customer support tries to assist and solve clients' requests as well as issues in a timely manner 24/5.

03

Hextra Prime acknowledges the importance of compliance, thus we commit to regulations and licensing to meet financial standards.

MORE ON ECN

Hextra Prime ECN Fees

One thing to note is that ECN brokers avoid wider spreads that are common with a traditional broker. However, the ECN broker will benefit from commission fees per transaction – this is a fixed, transparent commissions.

Market Execution

Your ECN broker automatically matches and executes the demanded orders at the best prices available. You get instant confirmation and there are no re-quotes, so there is no dealing desk involved.

Low Spreads

Your ECN broker will deliver much tighter spreads compared to the traditional broker because there is no middleman. Price quotes are obtained from various market participants, ensuring larger spreads are avoided by the ECN trade.

Anonymity

Trading with an ECN broker is completely anonymous. At that time, prices represent actual, live market conditions with the ECN offering a degree of privacy to those who need it, such as who execute large orders

Fixed Commission

Every time you trade, the ECN broker will charge a fixed fee, as that is their benefit. That said, it is certainly more transparent than the costs involved when using a traditional broker that provides markup on the spread which can be manipulated.

Variable Spreads

Live prices are constantly moving and a true ECN broker may offer floating spreads particularly when trading sessions overlap, without any spread markup at all to the price.

Execution Risk

As with any financial trading, if the assets being traded are illiquid, but for example, if the positions held are easy to exit and close, there is risk involved such as different pricing get filled as per market execution given the best available price.

Market Execution

Your ECN broker automatically matches and executes the demanded orders at the best prices available. You get instant confirmation and there are no re-quotes, so there is no dealing desk involved.

Low Spreads

Your ECN broker will deliver much tighter spreads compared to the traditional broker because there is no middleman. Price quotes are obtained from various market participants, ensuring larger spreads are avoided by the ECN trade.

Anonymity

Trading with an ECN broker is completely anonymous. At that time, prices represent actual, live market conditions with the ECN offering a degree of privacy to those who need it, such as who execute large orders

Fixed Commission

Every time you trade, the ECN broker will charge a fixed fee, as that is their benefit. That said, it is certainly more transparent than the costs involved when using a traditional broker that provides markup on the spread which can be manipulated.

Variable Spreads

Live prices are constantly moving and a true ECN broker may offer floating spreads particularly when trading sessions overlap, without any spread markup at all to the price.

Execution Risk

As with any financial trading, if the assets being traded are illiquid, but for example, if the positions held are easy to exit and close, there is risk involved such as different pricing get filled as per market execution given the best available price.

Information

Legal Announcement: Hextra Prime is incorporated in Saint Vincent & the Grenadines as a licensed Business Company under Financial Services Authority with registration number 25989 BC 2020. The website is owned and operated by Hextra Prime group of companies.

General Disclaimer: Trading Forex, CFDs, and any financial derivative instruments on margin carries a high level of risk and may not be suitable for all investors, as you could sustain losses. The Company under no circumstances shall be liable to any persons or entity for any loss or damage in the whole or part caused by, resulting from, or relating to any transactions related to CFDs. Hextra Prime assumes no liability for errors, inaccuracies, or omissions, does not warrant the accuracy, completeness of information, text, graphics, links, or other items within these materials.

Risk Warning: Trading Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investments and level of experience, before trading, and if necessary, seek independent advice.

Regional Restrictions: Hextra Prime currently only accepts clients from Asia & Pacific confederation specifically from South East Asia. Hextra Prime does not provide services to residents of the Americas region, Arab states, CIS countries, and European nations.