What is ECN Forex Trading?
Electronic Communication Network
ECN which stands for ELECTRONIC COMMUNICATION NETWORK is actually the future of FOREX markets. It is actually a bridge linking smaller traders with its Liquidity Providers.
Using sophisticated technology set up called the FIX PROTOCOL (FINANCIAL INFORMATION EXCHANGE PROTOCOL) the broker obtains liquidity from its LPs and makes it available for trading and at the same time delivers clients orders to the LPs for execution.
ECN brokers benefit from commissions earned per transaction.
RjjFX ECN Advantages:
Complete anonymity enables traders to deal in neutral prices which will reflect the real market conditions and not biased against the clients strategy.
Instantaneous Trade Execution
Forex is traded instantly on live streaming at the best executable price with immediate confirmation. RJJFX does not provide a "last look" to price makers thus trades are final and confirmed as soon as they are dealt. There are no re quotes with RJJFX.
Client to Liquidity Trading
The RJJFX ECN model enables clients to trade on the global liquidity of qualified and competitive financial instituitions.
Automated forex Trading/Market Data
Through the use of our API, clients can their trading models and risk management systems to our market data feed and matching engine. RJJFX's live, neutral and executable market data includes the most competitive bid and best ask price at any time. These attributes to our data and makes it robust in back testing trading models and powering them for live trading.
Unlike a dealer RJJFX does not control the bid/offer spread and therefore cannot provide the same bid/offer spread at all times. RJJFX offers variable spreads
On an ECN account clients have direct access to market prices that fluctuates and reflects supply and demand, volatility and other conditions. The RJJFX ECN enables clients to trade on tight bid/offer spreads which can be as low as 1 pip on all major currencies in normal market conditions.