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ECN technology: a key forex trend

Following on from a record year in forex trading, 2014 will be characterised by the dominance of Electronic Communication Network technology
ECN trading is said to be largely responsible for the strong performance of the forex market in 2013. Platforms such as Trader's Way have made it simple to get direct access to the interbank market

Following on from a record year in forex trading, 2014 will be characterised by the dominance of Electronic Communication Network technology

Last year saw higher interest and greater investment in forex than ever before. According to experts, this growth was caused by the opening of the forex market to retail clients, thanks to new Electronic Communication Network (ECN) technology. In addition, the overflow of retail traders had an impact on the industry and its further development. As for the current year, it is expected to be a worthy successor to 2013, continuing to expand and multiply upon these existing trends.

Although 2014 is not the first year ECN trading appeared in the market, it certainly looks set to be its blossom year. And, it will keep on blooming. The concept is so obvious that it is clear even to newcomers – direct access to the interbank market without broker interference ensures fair and transparent trading. Predominantly, more sophisticated and experienced traders were the first to make use of the service because of the significantly high-entrance level. Common traders, meanwhile, have just started to appreciate all the benefits of ECN trading, because forex brokers can now allow low initial deposits. The starting deposit on offer at Trader’s Way intermarket and brokerage services came down to as low as $10, making ECN trading affordable to practically all retail clients.

Direct market access
By opening an ECN account you guarantee that your order goes straight to the market without checking and requoting by a broker apparently interested in your loss. Previously only major institutional clients could have access to the interbank markets and non-professional traders had no other option but to allow brokers to arrange the deal for them. This is where the interests of both parties (client and broker) clashed.

New ECN technology has made it possible to provide direct access to the interbank market, where a broker has no chance to influence
the price

New ECN trading technology has made it possible to provide direct access to the interbank market, where a broker has no chance to influence the price. This is the way when your broker is interested in your success. That is why such companies take pains to assist you in the difficult job of catching the right market trend. Trader’s Way, for example, sees to it that its customers are offered only the most advanced and fastest bridges between the still favourite MT4 platform and ECN market, while numerous liquidity providers guarantee instant execution, with tightest spreads from zero pips.

Though the client-oriented MT4 is still on the top of popularity ratings among forex retail clients, one more important trend must be mentioned. Sky-rocketing interest in ECN trading brought to light platforms designed specifically for ECN, such as cTrader, which proved its convenience with direct trading on the interbank market. Experts at Trader’s Way note that – although the company offers a wide variety of trading options, such as mobile or social trading – its cTrader platform is forging ahead. They highlight the platform’s transparent pricing, lightning-fast speed and advanced trading options as reasons for this. All these aspects comply with the way in which Trader’s Way offers the best and most advanced services to its clients and help them make the most out of trading.

A popular platform
ECN trading and the growing popularity of ECN-oriented platforms will keep on enhancing their positions as key trends of forex market development. Now many companies offer ECN, but not all make it affordable, flexible and of high quality. It takes an intricate and well thought out ECN-tailored structure with the most innovative technologies and highly experienced staff to organise and offer clients real ECN trading, with the highest speed execution and lowest access level. Trader’s Way was initially launched as an ECN-oriented broker by market professionals, who set it as their mission to provide only the fairest trading conditions, with maximum opportunities and to assist traders in their success.

The key trends mentioned above are accompanied by the further rise of auto trading, scalping and high-frequency trading. These are the types of trading strategies that need high speed, high quality, and the tightest price. They started to flourish due to the aforementioned technological breakthroughs. In the past they were not welcomed by brokers and often refused by some companies. Now their time has come. Modern technologies, such as those used by Trader’s Way, allow brokers to welcome all traders and meet the needs of the most particular and intricate trading schemes.

Many experts predict that this year will be the point at which ECN brokers quickly leave those still using the old-fashioned approach behind. It doesn’t surprise anyone now. Everyone has got used to the fast pace of technological development and quickly switched to a more convenient model. ECN brokers and ECN technologies will be on the front line of the industry for some time to come.

Trader’s Way recently won the award for Best STP/ECN Broker, 2014

 

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