An Electronic Communication Network (ECN) broker is an intermediary that facilitates trading by connecting buyers and sellers directly in the financial markets. Unlike traditional brokers, ECN brokers do not take positions against their clients; instead, they provide a platform that enables traders to interact with other market participants, including institutional investors, banks, and other traders. This model generally results in better pricing and quicker execution times due to increased liquidity. ECN brokers typically charge a small commission or markup on spreads, which are the differences between the bid and ask prices of assets. Many traders prefer ECN brokers for their transparency and ability to access real-time market data.
Trading Infrastructure