What is Difference Between ECN vs Standard Account in Forex? - ECN Account vs Standard Account

ECN Account vs Standard Account - ECN Forex Trading Account vs Standard Forex Trading Account

ECN Account includes Paying of Commissions on top of forex spreads while Standard accounts only include paying of spreads without paying commissions.

ECN Accounts

ECN Account stands for Electronic Communication Net-work, these ECN Account forex brokers are connected to the inter bank network directly through an electronic communication network and the orders from the ECN Account are placed straight to the electronic net-work.

The ECN Account will display different orders from different banks. Quote placed by these ECNs network of banks are direct from them to the inter bank net-work & orders are executed direct to the interbank market once a trader trading with this ECN account places an order with their forex trading broker.

These ECNs account will charge commissions + spread for every forex trade. For these ECN Account execution technique every trade is matched to another in real time over the interbank network - ECN Network.

Standard Accounts

Standard Account - the Standard Account forex brokers will send client orders direct to their Forex Liquidity Provider, the Liquidity Provider is a large bank with deep liquidity to trade on the inter-bank network.

A Standard Account provided by a broker can either have one Forex Liquidity Provider or many liquidity providers.

The best thing about Standard forex Accounts is that forex traders can place their forex trades immediately with instant execution because they have access to the interbank markets via their STP forex broker execution.

Standard Accounts will not charge commissions, but will charge spread on forex trades. Because traders have access to the interbank market execution, there is no requotes on FX orders neither any order waiting for execution, the trading order execution is instant.