What is ECN?
The Electronic Communication Network (ECN) is used to describe the technology that administers Liquidity connections between market participants with Tier-1 Liquidity Providers. This connection can only take place through a FOREX Broker with ECN capabilities.
The technology protocol used to administer this activity is a FIX protocol (Financial Information eXchange protocol). This protocol enables the ECN broker to obtain Liquidity from Tier-1 Providers such as Major Banks and grant access to its professional trading clients. The ECN broker then executes client transactions directly to the banks trading book.
NSFX ECN Features
- Mutual Interest between Broker and Trader
- Instant Execution
- Direct Trading Connection to Banks
- Best Bid / Best Offer
- ECN Execution Model
ECN technology enables brokers to conduct business simply on volume traded by clients, and therefore client's trading positions based on strategy, or current market positions have no relevance.
The trading feed used by clients of the NSFX ECN system represent executable prices provided directly from the Liquidity source. This enables NSFX to offer a professional trading environment free from re-quotes and slippage. With no in-house dealing desk taking part in the transaction, clients are assured of the fastest execution with the strongest trading conditions.
NSFX ECN enables it's traders to tap directly into the Global Banking Liquidity Markets from the comfort of their own trading platform.
The NSFX ECN technology is based on a price aggregation model which controls the pricing feed from multiple Liquidity sources. The function is responsible to deliver the most optimal bid and offer prices from the best source available on any given price tick.
NSFX ECN traders have the advantage of knowing that every price they see on the trading platform is indeed the best available price at that moment, enabling smarter trading decisions and faster trading activity.