Forex ECN [ Electronic Communication
Network ] really is the way of the future for
the Foreign Exchange Forex Markets. ECN can best be described as a bridge linking
smaller market participants with tier-1 liquidity providers through a FOREX ECN Provider.
This linkage is done using
sophisticated technology setup named FIX Protocol (Financial
Information Exchange Protocol). At one end, the broker obtains liquidity from tier-1 liquidity
providers (Major Banks) and makes it available for trading to its clients. On the other side, the
broker delivers clients' orders to Liquidity Providers for execution.
INSTANTANEOUS TRADE EXECUTION - Clients trade instantly on live streaming, best executable prices with immediate confirmations. ITFX does not provide a "last look" to price makers, so ITFX trades are final and confirmed as soon as they are dealt. There is no dealing desk to intervene, so there are no re-quotes.
COMPLETELY ANONYMOUS - All trading activity is totally anonymous. Anonymity enables traders to deal on neutral prices, which reflect the real market conditions only and are not biased against the client's direction based on trading strategies, tactics or current market positions.
SEEING DEPTH OF MARKETS - In addition to seeing the best available bid and offer, clients can also view all prices in the system as well as the available quantity at each price. This feature enables clients to measure liquidity at different prices, improving their trade execution.
CLIENT-TO-BANK TRADING - The ITFX ECN model allows clients to trade on the global liquidity of world-class banks and qualified financial institutions.
DIRECT INTERBANK SPREADS - Unlike a dealer, however, ITFX does not control the bid/offer spread and therefore cannot provide the same bid/offer spread at all times. ITFX offers the lowest direct variable spreads.
EA AUTOMATED TRADING/MARKET DATA - Through the use of our API, clients can connect their trading models and risk management systems to our market data feed and matching engine. ITFX’s live, neutral, executable market data includes depth-of-market bid and offer prices as well as quantities available at all price levels. These attributes of our data make it robust in back testing trading models and powering them for live trading.
As the above suggests, the ECN Network presents a much better picture in terms of the client’s needs and expectations with regards to pricing, faster execution of orders, lowest variable spreads and convenience of no re-quotes.
Forex ECN format will allow us to maintain our NDD status while enabling us to operate in both ECN and STP networks. With this new format, we will be able to increase our competitive edge as well as allow our clients more options with their trading techniques. ECN brokers are the purest breed among all Forex dealers. They don't profit on spread difference; their only profit comes from commission.
Forex ECN enhances our communications network and services as well as our functionality and worldwide transactions in the Forex Market.