True ECN brokers

[pml100]

I'm looking for true ECN brokers - and by that I don't mean brokers that claim to be ECN when they are really STP.

Most Empty4 brokers hold clients orders on their Empty4 servers and regardless of the order type, fire off market orders to the ECN/LP's.

This is STP and not ECN. ECN means the client's order is presented as it is to the ECN i.e. a limit order is presented to the ECN as a limit order (and thus the rules of a limit order apply - only getting filled at stated price or better) and not held on Empty4 server and sent to ECN as a market order when triggered (which increases latency and of course introduces negative slippage which should be impossible with a limit order).

Take Profit orders attached to existing trades should also be limit orders.

The tell tale sign is:

1. Are limit orders sent to the ECN - if not you will notice negative slippage on limit orders and TP's
2. Is market depth available - this is always theoretically available if an ECN broker is merely passing your orders straight to your ECN - you should be able to see your limit orders on the DOM.
3. Are partial fills available.
4. Can you trade within the spread (and by entering a limit order the bid/ask should change to reflect the new limit order at the top of the book).

In the real world a limit order is only filled if there is an opposing counter party that can match your trade size. If a broker is truly ECN then it won't be 'fill or kill', they will operate on the basis that you will be filled at your stated price subject to available liquidity - any remaining order will sit there as a limit order until suitable liquidity comes along etc - so it is possible to only get partially filled on a trade.

As far as I'm aware the following brokers are true ECN through their Empty4:

MB Trading
Fx Open
Exness
FxPig

The following brokers are definitely STP (having confirmed to me that they pass limit orders as market orders):

LMAX (only Empty4)
Armada Markets
IC Markets
Axi Trader
Global Prime
Axi Trader
ATC
Vantage FX
Bully Pepperstone

I'm looking (if exists) to increase my list of true ECN Empty4 brokers if anyone is aware of any more to add to the list (in countries with half decent regulation...NFA, ASIC, FCA, FSP)

[SpiderX]

Hi,

How about FinFx ?

Cheers

[pml100]

Hi,

How about FinFx ?

Cheers

Would have to check with them on Monday, but taking a look at their website suggests they are not true ECN.

https://www.finfx.fi/en/trading-accounts

The link above details the various account types and if you look at the 'Ordertype' it states market order for all three accounts.

Though under the ECN Pro they do state "ECN Pro accounts can be extended with no-slippage limit order upon request!"

The lack of regulation in Finland puts me off a broker like this, but will check the ECN position with them nonetheless on Monday.