The foreign exchange (or Forex, FX) brokerage industry has evolved.
Little more than a half decade ago, retail Forex brokers arrived on the scene, and promised average citizen with access
to the once nearly-exclusive market on which the world's largest financial institutions exchanged the world's various
national currencies with each other.
At the beginning, brokers were free to do as they chose -- and they did. Bucket shop practices (brokers pocketing the losses
made by their own clients; creating a major conflict of interest) which were long outlawed in centralized markets (like
stocks, bonds, and options) became commonplace once again in the retail foreign exchange industry.
Today, most of the Forex trading community refers to the first generation of "Bucket shop" brokers as Dealing Desk brokers.
And ECN brokers are the alternative for today's retail off-exchange currency traders.
As the social networks and the online Forex trading discussion forums grew, retail traders connected with each other,
and word about the old Dealing Desk brokers' practices were exposed. Like any industry, the service providers must evolve
with the demands of their customer base -- and every broker on the planet began to advertise as "No Dealing Desk",
"STP" (straight through processing), and "ECN" (electronic communications networks).
So what exactly is an ECN Forex Broker?
DISCLAIMER: Off-exchange foreign currency trading on margin has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the off-exchange foreign currency markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell forex contracts, futures, or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information on this website is for educational purposes only and is not intended to provide financial advice. Any statements about profits or income, either expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold ECNForexBrokers.net and the owner / founder / writer of this information harmless in any and all ways.
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