What ECN Trading Is and What Its Advantages Are
The recent development of information technologies brings new opportunities to the world of trading. Electronic Communication Network (ECN) is one of these opportunities. ECN Trading is an electronic system created for buyers and sellers, allowing them to communicate with each other in order to execute trades and other financial operations. ECN trading offers numerous advantages compared to traditional trading systems and is definitely worth trying if you are interested in comfortable and profitable trading.
The basic principles of ECN markets provide new opportunities for users of the finance platform. For instance, since an ECN broker only matches trades between market participants, it cannot trade against the client. While choosing a broker, make sure that this option is available. Luckily, the majority of companies such as ForexTime have this option available.
Advantages of ECN
Initially, this network is designed to simplify the process of matching buy and sell orders currently present in the exchange. One of the key advantages of ECN is the ability to trade outside traditional trading hours. Wider availability of the market provides better flexibility and easier access to the market. In its turn, it allows people from different parts of the globe to participate in trading: users from South Africa, Nigeria, Europe, etc. can freely take part in Forex tradingand exchange stocks. Without any doubt, such an opportunity grants a lot of trading options for you as a user.
Another advantage that makes this approach so attractive is feed transparency. It has to do with the way information is transmitted. Regardless of the platform, there is one feed that all ENC traders have access to, with the same price tag as well. Moreover, traders state that it is more convenient and easy to analyze certain trends in the market due to price history.
It leads to another advantage - it is much more difficult to make unscrupulous actions as the information is available to all participants. The rate of price manipulation is also much lower. It is also almost impossible to get an advantage during trades as everybody has access to the same information. Long story short, ECN trading grants you all the information you need, which is accessible at any convenient time.
Another benefit of ECN trading is a high level of anonymity and protection of personal information. Recently, leaks of personal data and information have become a major concern throughout the world, affecting not only Forex trading but any other activity that involves interactions with data. With ECN, you can rest assured: all your personal information is protected. By taking this into consideration, ECN systems are perfect for large transactions, as you do not have to worry about your privacy and security. Without any doubt, the non-ECN systems do not offer the same level of data protection, which can become a serious issue in the event of an information leak.
To conclude, the ECN network has numerous advantages compared to the non-ECN system, including independence from business hours, global scale of trading, unlimited access to the necessary information, and high-level data protection that allow big transactions to be made. Hence, ECN is definitely worth trying if you want to take your involvement in the financial operations to the new stage.