Best ECN Forex Broker Choices in the USA

What is an ECN Broker?

Currencies aren‘t traded in centralized locations the way stocks are on exchanges. Currency trades happen all over the world, but most take place on something called the interbank market. The interbank market is where the world’s largest global banks exchange currencies to provide liquidity to the forex market. Retail traders dont have access to this market, so they trade through either an ECN or a market maker.

ECNs are complex computer systems that connect buyers and sellers from every corner of the forex market. Since ECNs have access to traders on both on the interbank market and retail brokerages, counterparties to trades can be found without the help of a market maker. Buyers and sellers can easily be matched, which results in quicker trades and more accurate spreads.

ECN brokers usually charge commissions and have high minimum account balances. But unlike market maker brokers, ECNs do a good job of executing your trade at the price you want and there‘s no perverse incentive to trade against the customer. Since the market maker is the counterparty to a retail customer’s trade, conflicts of interest exist and that presents a risk in the largely unregulated forex market. The ECN broker works as a middleman, not a counterparty.

The main benefit of choosing an ECN broker is its transparency, as there is no conflict of interest. Unlike traditional brokers, ECN brokers do not take positions on their clients' orders, but instead charge a commission on each trade as compensation for assisting their clients in accessing liquidity providers. This setup ensures that brokers have no incentive to manipulate prices and provides a level playing field for traders.

Top ECN Forex Brokers in the U.S.

Lets take a look at the top ECN forex brokers in the U.S. Each broker offers unique features and benefits for traders looking to use an ECN platform.

• Interactive Brokers:

Interactive Brokers was established in 1978 and subject to regulatory oversight from esteemed authorities across the globe. Interactive Brokers is widely recognized as a top-tier ECN broker, providing unparalleled access to an extensive range of markets. With no minimum deposit requirement, its trading fees stand out as some of the most competitive in the industry. Clients can trade a diverse array of financial instruments, including but not limited to stocks, ETFs, options, futures, currencies, cryptocurrencies, US spot gold, bonds, mutual funds, and hedge funds.

• Forex.com:

Forex.com is a dedicated currency broker that diversifies its services by providing other asset classes, including commodities, and indices. Its GTX Direct offering is a comprehensive ECN trading environment, ensuring you benefit from competitive fees, spreads, and commissions. Youll have access to over 90 forex pairs, comprising majors, minors, and exotics. Notably, the platform permits you to commence trading with a minimum deposit of only $50.

• Best for Fast Execution Speed: BlackBull Markets

Beginner traders looking for a broker that offers exceptional 24/7 customer service, an extensive knowledge library, and no minimum balance will find it in BlackBull Markets. Experienced traders will love the platforms spreads from 0.0 pips and up to 500:1 leverage, and average execution speed up 20ms.

The platform offers seven trading platforms including MetaTrader 4 and 5. It offers educational resources, including video guides, for beginner, intermediate, and advanced traders.

• Best for Longevity: HYCM

HYCM has been in business since 1977 and has earned the trust of brokers worldwide. It processes more than 25 thousand orders a day and its customer service is easily reachable 24 hours a day Monday to Friday.

HYCM offers various types of trade accounts that charge no commission to $4 per round and pip ranges from 0.1 to 1.5 – and a maximum leverage of 500:1. Traders can trade on MetaTrader 4 and 5, and the platform released its own trading app in 2022.

• Best for Educational Resources: AvaTrade

AvaTrade is a reputable and well-established ECN forex broker that offers a wide range of trading instruments, including forex, commodities, indices, stocks and cryptocurrencies. They provide traders with direct access to interbank liquidity and competitive pricing, ensuring fast execution speeds and minimal slippage.

AvaTrade also offers a variety of trading platforms, including MetaTrader 4, AvaTradeGO, and their proprietary platform, AvaOptions, giving traders the flexibility to choose a platform that suits their trading style. With excellent customer service and a range of educational resources, AvaTrade is suitable for both beginner and experienced traders looking for a reliable ECN forex broker.

Comparison of ECN Forex Brokers

Are ECN accounts good for beginners?

ECN brokers are good for beginners although beginners may prefer to trade commission-free accounts because they have a simpler cost structure and are more common in the US. Experienced traders prefer ECN accounts because of the lower spreads, which is also true for beginners, but make sure to factor in commissions as part of the total cost.

For beginners, we recommend using Forex.com instead of Interactive Brokers because in our experience, opening an account with Interactive Brokers can be very difficult, and their customer service does not always meet our expectations. For example, we had to complete a tedious application with Interactive Brokers, which required us to provide extensive documentation.

We also prefer the fixed commissions of the Forex.com Raw Pricing account to the tiered commissions of Interactive Brokers. While Interactive Brokers' tiered commissions may be cheaper (if you trade a large enough volume), some people may find them confusing.

How do I choose an ECN broker in the US?

Choosing the right ECN broker is an important early step in your trading journey. It's about finding a reliable partner that suits your trading style and needs. Below is a simple guide we have put together to help you make an informed decision.

Regulated by the CFTC and NFA

Make sure your broker is regulated by the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). This ensures that the broker adheres to strict financial standards and provides a fair trading environment for customers.

Choosing the right type of account

Look for a broker that offers the right type of account for your capital and trading strategy. Some ECN accounts require higher minimum deposits but offer lower spreads and commissions.

Large number of forex pairs

Choose a broker that offers a wide range of forex pairs, including major forex pairs, minor forex pairs and rare currency pairs. This diversity provides you with more opportunities to trade according to your own interests and trading strategies.

Good Customer Support

Good customer support is crucial, especially for new traders. We recommend choosing a broker that offers 24/5 support and multiple channels such as live chat, email and phone.

Top Trading Platforms

Ideally, brokers should offer a top-tier trading platform such as MT4 or MT5. A good platform will have reliable performance, plenty of charting tools and indicators, and backtesting. Some traders may want to ensure that the trading platform has automated forex software trading or copy trading capabilities.

Education and Research

Brokers that offer comprehensive educational resources and up-to-date market research are invaluable, especially for beginners. This includes webinars, tutorials and daily market analyses to help you make informed decisions.

How to open an ECN Forex trading account in the USA?

To open an ECN forex trading account in the USA, first choose a broker such as FOREX.com or Interactive Brokers. Visit their websites and look for account registration or sign up options. You will be required to provide personal and financial details and may have to answer questions about your trading experience.

After completing your application, you may be required to submit identification documents for verification. Once your account is approved, you can deposit funds and begin trading. Keep in mind that the process may vary slightly between brokers, so it's important to follow the specific instructions on their websites.

Which ECN Broker Has the Best Trading Platform in the US?

When US retail traders were choosing between Interactive Brokers and FOREX.com, we found Forex.com to be the best choice in terms of trading platform options.

FOREX.com offers the Forex.com trading platform, MetaTrader 4, MetaTrader 5, and TradingView, which are the most popular and widely used trading platforms in the world by retail traders. These platforms are highly regarded for their user-friendly interfaces, powerful analytical tools and wide range of features. They are well suited to the needs of retail traders, offering a range of charting, analysis and trade execution features.

Interactive Brokers has its own client trading platform called IBKR Trader Workstation (TWS). The IBKR platform has a number of advanced trading features, so it's a good choice for advanced traders, but may not be so good for the average trader.

Frequently Asked Questions

Are ECN brokers better?

ECN brokers can provide fast execution of orders and tend to come with more favorable prices.

Which broker offers an ECN account?

FOREX.com, HYCM, and MultiBank Group all offer ECN accounts.

What is the minimum deposit for ECN brokers?

The minimum deposit for most ECN brokers is $100.