NDD, dealing model, dealing Desk, no Dealing Desk, no Dealing Desk, no Dealing Desk, execution, instant Execution, instant Market Execution, market Execution. By this, they make the market for traders: they buy when traders want to sell and sell when traders want to buy, meaning they take the opposite side of the trade. ECN forex brokers aggregate a list of all the best bid and ask prices from liquidity providers (usually major banks and financial institutions) and match trades with the best possible prices and lowest possible spreads without considering the source. They want you to lose so they can pocket your account!
Our extensive list of liquidity providers combined with refined technology guarantees precise execution of orders in any market conditions. Among advantages of using true ECN technology we can name absence of trading restrictions, brokers inability to manipulate the price feed, spreads from 0 pips and absence of r"s. The exchange rates that market makers set are based on their own best interests. Cons: Many of them do not offer integrated charting and news feeds. Trading with ECN broker means you see the real market prices only and are able to execute your orders by that price.
ECN -type brokers also serve as counterparties to forex transactions, but they operate on a settlement, rather than pricing basis. Difference Table: ECN brokers vs DMA brokers vs STP brokers vs Market Maker Forex brokers. Detailed Comparison at a glance. Trading with an ECN forex broker such as Vantage FX means that your interests are aligned with those of your broker. An ECN forex broker passes.