What is a True ECN Forex Platform?

If you are familiar with forex trading, then you would know about its classifications “Market Maker” and “ECN”. ECN or Electronic Communications Network provides a trading environment where banks, market makers, and retail traders buy and sell to each other.

In ECN environment, you can get liquidity provider A to fill your buy order. Another liquidity provider that will be regarded as B can then close your order. You can also swap match your trade with another offer or bid that is made by another trader in the same marketplace. You can view the best possible bids and offers along with the depth of the market, which can be termed as a collective volume that is available with every price. Since there are many participants in the market who provide prices to the ECN forex broker, it results in tighter spreads.

Generally, your ECN broker will charge you a certain commission for matching your trades with his liquidity providers and clients. Despite this, using a broker that utilizes an ECN forex platform has many advantages. The most obvious of these are deep liquidity and tighter spreads. If you are a day trader and enjoy tight spreads, then you can use the small movements in price to your advantage. Similarly, if you can get the benefit of deep liquidity, then you can trade large volumes without it significantly affecting the price. So, if the market conditions become volatile or you use an automated forex trading system, then this can be extremely beneficial for you.

Thus, if you consider the net effect of deep liquidity and tight spreads, you will realize that you can benefit from a large number of trading opportunities. Obviously, the more you trade, the more chances there are of you earning a profit.

If you are planning to use an ECN forex trading platform, you should know that you will not be able to take advantage of any of its benefits if you do not implement a proper trading strategy or follow an effective plan. Whichever tactics you choose, be sure to consider your lifestyle, capital outlay and your ability to bear risks. When you have formulated a proper plan, try a variety of forex trading platforms and then choose the one which is most appropriate for your trading style. You should open a demo account and make use of the trial period for about a month, which is enough time to make a decision.


We’re very glad to welcome you to trade with IMMFX ECN platform. Feel free to practice on ‘Demo Account’ with unlimited virtual money and open a Real Account when you’re ready to jump on the live financial market.