When Choosing a Forex Broker Market Makers & ECN's or STPS and Dealing Desks? what is the Difference?

1. When Choosing a Forex Broker Market Makers & ECN's or STPS and Dealing Desks? what is the Difference? What Does Straight Through Processing - STP Mean? An initiative employed by companies within the financial world to optimize the speed at which transactions are processed. this is often performed by allowing information that has been electronically entered to be transferred from one party to a different within the settlement process without manually re-entering an equivalent pieces of data repeatedly over the whole sequence of events. What Does Transmission Network - ECN Brokers Mean? An electronic system that attempts to eliminate the role of a 3rd party within the execution of orders entered by an exchange market maker or an OTC market maker. The Disgruntled The ECN Brokers grumblings and trading malcontent isn't new and has been around since the Forex market began. As lately this discussion is exceedingly fierce and is gaining in popularity. As we all know change isn't something we embrace. Such questions like, why are my spreads changing and getting wider? I don't ever remember spreads being this far apart. My order slipped more pips then it might have normally. what's going on? Why is that this happening now? As the market changes and adapts the Forex ECN Trade evolves. The evolution of a ECN Trade is witnessed by the news traders which have needed to vary strategies, and the way they trade economic news. The potential to form great gains is clear with economic news releases, and it had been shortly before traders caught on. Such strategies as straddling the market before news releases became more prevalent.

2. How does the market react to such changes? HOW DOES THIS AFFECT ECN BROKERS, TRADERS AND WHAT ARE THE RESULTS OF USING ECN/STP TYPE ECN BROKERS AND DOES IT BENEFIT A TRADER TO USE AN ECN BROKERS THE ABOVE CIRCUMSTANCES? THE SOLUTION TO THE PRESENT REQUIRES SOME FURTHER INSPECTION INTO MARKET MAKERS AND THEIR RELATIONSHIP WITH INTERBANK FOREX MARKET AND SUBSEQUENT LIQUIDITY PROVIDERS. IT'S NO SECRET RETAIL ECN BROKERS ARE THE COUNTER PARTY TO ALL OR ANY OF YOUR CURRENCY MARKET TRANSACTIONS. ONCE YOU EXECUTE YOUR TRADE THE OTHER SIDE OF YOUR ECN TRADE IS TAKEN BY ANOTHER TRADER A BIT LIKE YOU. THE RESOUNDING AFFECT FOR THE ECN BROKERS IS THAT THEY RECEIVE A COMMISSION FOR FACILITATING YOUR TRADE. NOW LET'S CHECK OUT ANOTHER MEANS TO FACILITATE YOUR TRADE. INSTEAD OF SENDING YOUR TRADE TO LIQUIDITY PROVIDERS FOR PROCESSING THERE ARE MARKET MAKERS WHICH TAKE THE OTHER SIDE OF YOUR TRANSACTION SO AS TO HELP FACILITATING THE ECN TRADE. A MARKET MAKER MAY DECIDE BECAUSE THE TEXTURE YOU’RE GETTING TO LOSE ANYWAYS IT BENEFITS THEM TO REQUIRE YOUR ORDER AND CONFINE HOUSE.

3. IN THE FIRST INSTANCE WHERE ONE TRADER IS OUT THERE TO REQUIRE THE OTHER SIDE OF YOUR TRADE IS RIGHT UNTIL THERE'S NO VOLUME THEN YOU GET TO KNOW AN ECN BROKERS AND STP BEST ECN BROKERS. WITH AN ECN BROKERS AND STP YOU'RE SUBMITTING MARKET ORDERS. MARKET ORDERS GET FILLED WHEN THERE'S THE QUANTITY TO TRY TO SO OTHERWISE YOU GET OFF QUOTES WHICH TELL A TRADER NOBODY IS WILLING TO RISK TAKING YOUR TRADE/ORDER. DURING TIMES OF HIGH VOLATILITY LIKE ECONOMIC NEWS, SPREADS CAN WIDEN WITH AN ECN BROKERS, STP AND THE OTHER SORT OF BROKER UNLESS YOU'VE GOT A BEST ECN BROKERS WHICH CHARGES A HARD AND FAST SPREAD. NOT ONLY WILL THE SPREADS PERHAPS WIDEN YOU'LL NOT GET YOUR ORDER FILLED AT THE WORTH YOU INTENDED. SECONDS COULD PASS BEFORE YOU GET FILLED CAUSING SLIPPAGE OR REQUOTING. SO NOW YOU SEE HOW IT'S POSSIBLE TO BE PERFECTLY PROUD OF YOUR BROKER THEN THE PRINCIPLES CHANGE AND YOU BEGIN TO ASCERTAIN MORE INSTANCES OF SLIPPAGE, MORE REQUOTES AND OR OFF QUOTES THEN YOU HAD SEEN PREVIOUSLY. YOU'RE REALLY AT THE MERCY OF THE MARKET. THE MORE TRADERS THAT HOP ON BOARD AND TRADE ECONOMIC NEWS THE LESS LIKELY THE CONDITIONS WILL REMAIN FAVORABLE. HOW LONG DOES ONE SUPPOSE A BROKER AND SUBSEQUENTLY A LIQUIDITY PROVIDER GETTING TO BE WILLING TO LOSE MONEY? SO IT SHOULD BECOME OBVIOUS A BUSINESS MODEL CHANGE IS SO AS. AN EQUIVALENT ECN BROKER YOU USED PREVIOUSLY FOR NEWS TRADING IS NOT SO WILLINGLY TO FACILITATE YOUR ORDER(S) AT THE WORTH WHERE YOU'LL POTENTIALLY TURN A PROFIT. YOUR BROKER HAS ISSUES WITH ALL OF THESE ORDERS FOR EUROS THAT NO-ONE WANTS NOW. SO WHAT DOES THE MARKET MAKER DO NOW? WELL THEY'RE GOING TO SLIP THE WORTH, WIDEN SPREADS OR SHUTDOWN THE POWER TO ECN TRADE DURING NEW RELEASES.

4. So you are not happy anymore. Is it time to seem for a replacement broker? WHEN THE PLAYING FIELD CHANGES FOR YOU AS A TRADER SUSPICION SETS IN AND YOU BEGIN TO WONDER IF YOUR BEST ECN BROKERS ISN'T TAKING ADVANTAGE OF YOU. YOU'VE GOT CERTAIN EXPECTATIONS ONCE YOU ATTEND PLACE YOUR ORDER AND NOW IT JUST LOOKS LIKE YOU ARE NOT MAKING ANY MONEY AND YOU ARE FEELING AS IF YOUR BROKER HAS PULLED A QUICK ONE. SO YOU BEGIN TO SEEM AROUND FOR A FAR BETTER DEAL. YOU ASK YOUR TRADING COLLEAGUES AND SEARCH THE WEB TO FORM A CHANGE. SO WHAT NOW? WHERE DOES ONE LOOK? IN YOUR SEARCH YOU DISCOVER THE RIGHT BEST ECN BROKERS FOR YOUR SPECIFIC NEEDS. SO YOU PROCEED TO DOWNLOAD THEIR DEMO, AND THEREFORE THE SPREADS ARE AMAZING. NOT ONLY THAT BUT THEY NEED STRAIGHT THROUGH PROCESSING AND DIRECT MARKET ACCESS. THE STP/ECN EXPERIENCE

5. YOUR PERCEPTION AND FAITH IS ONCE MORE RESTORED. WE ALWAYS THOUGHT THE STP/ECN MODEL WOULD FINALLY PUT AN END TO CHEATING AND IF WE ONLY COULD ECN TRADE WITH AN IMMEDIATE LINK TO THE MARKET UNLIKE THOSE DIRTY ROTTEN DEALING DESKS WE MIGHT BE SET TO TRADE PROFITABLY AND WITHOUT INTERVENTION. IMMEDIATELY YOU START TO NOTE SLIPPAGE ALBEIT YOU WERE SOLD A BILL OF PRODUCTS OF NO SLIPPAGE. SO WHY DOES THIS HAPPEN? WELL YOU'RE GETTING A TASTE OF TRUTH STP/ECN ENVIRONMENT. YOU'RE NOT REALLY GETTING SLIPPED YOU'RE GETTING EXACTLY WHAT YOU ASKED FOR. A TRUE DYNAMIC MARKET WHICH PROVIDES ECN TRADE WITH MARKET ORDERS. THE MARKET CHANGES DURING A NANO SECOND SOMETIMES, SO BECAUSE PRICE ISN'T STATIC THE WORTH YOU REQUESTED ISN'T ALWAYS THE WORTH WHICH IS BEING OFFERED AT THAT POINT. SO YOU’RE NOT BEING CHEATED YOU'RE GETTING PRECISELY WHAT YOU ASKED FOR, THE SOLE DIFFERENCE IS THAT THE PRICE MOVED BEFORE YOU’RE GETTING FILLED. DURING A HEAVILY VOLATILE MARKET THE DIFFERENCES ARE OFTEN MORE GLARING THEN A PIP OR TWO AND THAT IS ALBEIT YOU GET FILLED. IT'S POSSIBLE DURING TIMES OF ECONOMIC NEWS YOU'LL NOT GET FILLED IN THE LEAST. BOTTOM LINE SIMPLY BECAUSE YOU'RE SELLING DOESN'T MEAN SOMEONE GOES TO SHOP FOR WHAT YOUR SELLING ESPECIALLY DURING TIMES OF UNCERTAINTY. YOU SHOULD IF YOU'VE GOT NOT ALREADY GET A PITY THE MARKET DURING NEWS TIMES WHERE THERE'S A FRENZY OF ACTIVITY BOTH FROM BANKERS AND SPECULATORS ON NEWS. YOU'LL SEE PRICE MOVES ERRATICALLY SO IF YOU'RE GETTING TO PARTICIPATE DURING THIS QUITE MARKET YOU OUGHT TO KNOW ALL BETS ARE OFF. THERE ARE NOT ANY STOPS LOSSES NOR TAKE PROFIT PRICE GUARANTEES. YOU'RE AT THE MERCY OF WHAT THE MARKET OFFERS YOU DURING TIMES OF HEAVY VOLATILITY. ANOTHER CONSIDERATION ARE COMMISSIONS. WITH AN ECN OR STP BROKER YOU GENERALLY PAY A COMMISSION AND SPREAD BUT A MINIMUM OF THE SPREAD MAY BE A TRUE RAW SPREAD AND NOT INCREASED OR MANIPULATED BY YOUR BROKER. YOU'RE SEEING SPREADS THE LIQUIDITY PROVIDER’S SETS.

6. In the end your left wondering is an ECN really worth it? IT DEPENDS ON YOUR TRADING STYLE IF AN ECN/STP IS TRUE FOR YOU. THE RATIONALE THESE SORTS OF MODELS ARE GAINING IN POPULARITY IS DUE TO TRANSPARENCY. THE STP/ECN MODEL ALLOWS FOR PRICING TO TRAVEL ON TO THE MARKET WITH NONE INTERVENTION BY THE INTERMEDIARY LIKE WITH A DEALING DESK TYPE MODEL. THIS MODEL CAN ALSO OFFER YOU PEACE OF MIND WITH REFERENCE TO THEIR INABILITY TO REQUIRE ADVANTAGE OF PRICE MANIPULATION. THIS IS OFTEN NOT AN ABSOLUTE FOOL PROOF NOR ABSOLUTE TRANSPARENCY HOWEVER IT’S WHAT WE'VE TO FIGURE WITH PRESENTLY. IT'S THE SIMPLEST MEANS WE'VE TO FIGURE WITH AND AS YOU'VE GOT LITTLE QUESTION DISCOVERED WHERE THERE'S A CHANCE TO TAKE ADVANTAGE OF, SOMEONE WILL ALWAYS PLAN TO DO SO. BOTTOM LINE IS THAT IF YOU'RE HAPPY THEN THERE'S NO NEED FOR YOU TO VARY BEST ECN BROKERS OR MEANS OF HOW YOU ECN TRADE FOREX. STP/ECN MODELS AREN'T THE BEING ALL AND END ABOUT IF YOU'RE WANTING TO MEET UP WITH TO THE PARTICULAR MARKET THEN THIS MIGHT BE THE MODEL FOR YOU. THERE ARE SOME SPECIALIZED MARKET MAKERS OUT THERE WHICH SUPPLY ENOUGH BENEFIT THAT'S WORTH STAYING ESPECIALLY IF YOU'VE GOT A SMALLER ACCOUNT. SUCH THINGS THEY'LL OFFER ARE NEVER HAVING TO STRESS ABOUT LOSING EXTRA MONEY THEN WHAT'S IN YOUR TRADING ACCOUNT. PERHAPS YOU'RE TRADING WITH AN EA OR EXPERT ADVISER WHICH SCALPS THE MARKETPLACE FOR A COUPLE OF PIPS.

7. OBVIOUSLY IF YOUR SPREADS AREN'T TIGHT THEN YOU'RE EITHER NOT GETTING TO BE PROFITABLE OR NOT AS PROFITABLE AS YOU BE WITH A CORPORATION WHICH PROVIDES GUARANTEED FIXED SPREADS. OTHER CONSIDERATIONS WHEN CHOOSING A BROKER INCLUDE, LEVERAGE, SPEED OF EXECUTION, FUNDING METHODS AND A NUMBER OF OTHER ITEMS YOU WOULD LIKE TO COMPLETELY UNDERSTAND. WE COVER ALL OF THIS AT [HTTP://WWW.TOPECN]. TAKE THE TIME TO REQUIRE OUR TEST TO OFFER YOU SOME INSIGHT INTO WHAT BROKER IS BEST FOR YOU. TAKE A WHILE TO REVIEW OUR SITE AND EDUCATE YOURSELF DURING THIS WONDERFUL WORLD OF FOREX. I EVEN HAVE BEEN BATTLING WITHIN THE FOREX TRADING AREA FOR 12 YEARS AND WITHIN THAT POINT DEVELOPED A ROBUST PASSION FOR SHARING THE KNOWLEDGE I EVEN HAVE GAINED OVER THE YEARS.

8. Guide on ECN Broker and Its Advantages Against Fixed Spreads GENERALLY SPEAKING, THERE ARE TWO MAJOR CLASSIFICATIONS OF FIRMS WITHIN THE FOREX TRADING INDUSTRY. ONE IS NAMED THE MARKET MAKER AND THEREFORE THE OTHER ARE OFTEN CLASSIFIED AS ECN. BEST ECN BROKERS STANDS FOR ELECTRONIC COMMUNICATIONS NETWORK. AMONGST THE 2 CLASSIFICATIONS, PERHAPS YOU'LL HAVE ALREADY HEARD OF MARKET MAKER BROKER INSTEAD OF AN ECN BROKER. ALTHOUGH NOT TOO MANY FOREX TRADERS ARE USING BEST ECN BROKERS, THIS CLASSIFICATION IS BEING INTRODUCED NOW WITHIN THE MARKET AND IS BEING MADE POPULAR DUE TO THE WONDERFUL ADVANTAGES THAT IT CAN BRING. UNLIKE THE MARKET MAKER, THE ELECTRONIC COMMUNICATIONS NETWORK BROKER DOESN'T HAVE A SELECTION THAT'S FIXED. THIS SUGGESTS THAT THE SPREAD WILL GREATLY BELIEVE THE SELLING AND BUYING RATES WITHIN THE MARKET. THIS IS OFTEN THE MOST ADVANTAGE OF BEST ECN BROKERS OVER MARKET MAKER BROKER. FOR SURE, YOU'LL HAVE ALREADY MET AND ADDRESSED FOREX BROKERS THAT ONLY OFFER A HARD AND FAST SPREAD, WHICH IS SWEET IF THE BUYING AND SELLING RATES ARE GOOD. BUT THE MOST PROBLEM WITH FIXED FOREX BROKERS IS THAT THE RATES REMAIN AN EQUIVALENT REGARDLESS OF HOW HIGH OR REGARDLESS OF HOW LOW THE SELLING RATES ARE. ON THE OPPOSITE HAND, A FOREX ECN BROKER CAN GUARANTEE AND ASSURE INVESTORS A BIGGER PERCENTAGE OF SUCCESS THANKS TO ITS FLEXIBLE CHARACTERISTICS. IT CAN GREATLY ADAPT TO THE RATES WITHIN THE MARKET WHICH IS EVEN BETTER FOR TRADERS.

9. ANOTHER GREAT POINT ABOUT FOREX ECN BROKER IS THAT YOU SIMPLY DO NOT HAVE TO TRAVEL IN DEALING DESKS. THIS SUGGESTS THAT YOUR MONEY WON'T NEED TO UNDERGO DIFFERENT PROCESSES AND CAN HEAD ON TO THE INTERBANK MARKET. THIS PROCESS OR METHOD IS ADDITIONALLY REFERRED TO AS STRAIGHT THROUGH PROCESSING OR STP. THIS IS OFTEN ACTUALLY TONS EASIER SINCE THERE ARE NOT ANY DEALING DESKS, AND YOU'RE HANDLING THE BANKS WITHIN THE MARKET DIRECTLY. WHY SHOULD I SELECT ECN BROKER? WITH A FOREX ECN BROKER, YOU'LL EASILY DETERMINE THE MARKET'S DEPTH SINCE THE ORDERS THAT HAD BEEN MADE AND SOLD ARE OFTEN EASILY SEEN. ALTHOUGH THE ONE THAT DID THE TRADE WILL REMAIN ANONYMOUS, ALL THE TRANSACTIONS MADE WITHIN THE MARKET AND THEREFORE THE CORRESPONDING AMOUNT ARE OFTEN FOUND. THIS SUGGESTS THAT THE STATUS OR THE RATIO OF SUPPLY AND DEMAND IS TRANSPARENT TO EVERYONE AND DEALING ISN'T GETTING TO BE AN ENORMOUS PROBLEM IN THE LEAST. HOW TO START WITH ECN? AN ACCOUNT WITH A FOREX BROKER MUST BE OPENED. OPENING OF AN ACCOUNT WITHIN THE USE OF AMERICA USUALLY STARTS AT $5,000.00. THIS IS OFTEN BECAUSE THE MOST QUARTERS OF THOSE ECN BROKERS ARE EITHER ON USA, UK, OR BRITAIN. THERE ARE OFTEN VARIOUS CHANNELS IN ELECTRONIC COMMUNICATIONS BROKER AND EVERY ONE OF THOSE CHANNELS ARE ALL CONNECTED TO THE INTERBANK TRADING. DEPOSITING AND WITHDRAWAL OF AMOUNTS ARE OFTEN EASILY DONE THROUGH YOUR MASTERCARD, ALTHOUGH THIS IS OFTEN THE SOLE METHOD THAT ECN BROKERS ACCEPT. THE BEST THING ABOUT ECN BROKERS, IS THAT THEY ARE DOING NOT COMPETE WITH THEIR CLIENTS OR MAYBE TRADE AGAINST THEM. WHAT THESE BROKERS DO IS ACCEPT THE PAYMENT FROM YOUR MASTERCARD, AND FORWARD YOUR DEAL TO THE INTERBANK MARKET DIRECTLY. THAT'S IT! NO QUESTIONS ASKED!

10. How an ECN Broker Uses Professional Forex Strategy? FOREX STRATEGY IS PREDICATED ON CERTAIN CRITERIA AND QUITE LIKELY PROFITABLE STRATEGY IS EMPLOYED FOR MANY GIVEN CURRENCY PAIRS. ONCE YOU ENCOUNTER HIGHLY VOLATILE CURRENCY PAIRS, THEN YOU WOULD LIKE TO SEEM AT USING BREAKOUT STRATEGIES. MOMENTUM ECN TRADE ARE MUCH MORE ATTRACTIVE WHEN USING MODERATE VOLATILE LEVELS ALSO AS STRONG TREND VALUES. AND IN FACT ROCK BOTTOM VOLATILE PERCENTILE AND TRAD INDICATOR FIGURES MAKE RANGE TRADING EXCEPTIONALLY ATTRACTIVE. ECN BROKERS IS AN UNREGULATED GLOBAL MARKET WHEREBY TRADING DOESN'T OCCUR ON AN EXCHANGE AND NEITHER DOES IT HAVE A PHYSICAL ADDRESS WHERE BUSINESS IS COMPLETED , AS AGAINST EQUITIES THAT ARE ECN TRADE VIA EXCHANGES WORLDWIDE, LIKE THE LONDON STOCK MARKET AND NY STOCK MARKET , WHERE EXCHANGE TRANSACTIONS HAPPEN BETWEEN AGREEABLE BUYERS ALSO AS SELLERS WORLDWIDE OVER THE COUNTER. EXCHANGE RATES OF ANY CURRENCY PAIR IS NETWORKED AND NOT CENTRALIZED AND MAY VARY FROM ONE BROKER TO A DIFFERENT . THE LARGEST BANKS WITHIN THE WORLD ARE THE MOST MARKET PLAYERS, AND THIS IS OFTEN WHERE THE FOREMOST ACTIVITIES HAPPEN AND IS UNDERSTOOD BECAUSE THE INTERBANK MARKET. RETAIL ECN TRADE AS AN EXAMPLE DON'T HAVE ACCESS TO THOSE MARKETS, AS THEY NEED NO CREDIT CONNECTIONS WITH THESE LARGE ECN BROKERS STRATEGY PLAYERS. THERE ARE TWO SORTS OF RETAIL ECN TRADE THAT TRADE ECN BROKERS LIKE THE ELECTRONIC COMMUNICATIONS NETWORKS (ECN BROKER) AND MARKET MAKERS. MARKET MAKERS SET THE BID ON THEIR SYSTEM ALSO AS DISPLAY THEM PUBLICLY ON THEIR QUOTE SCREEN.

11. AN ECN BROKER MAKES MONEY BY CHARGING THE PURCHASERS A HARD AND FAST COMMISSION FOR EACH TRANSACTION. THESE BROKERS DON'T PLAY ANY ROLE IN FIXING PROCESS, THEREFORE THE RISKS OF PRICE MANIPULATION IS REDUCED FOR RETAIL TRADERS. THERE ARE 2 SORTS OF ECN'S WHICH ARE RETAIL AND INSTITUTIONAL. THE INSTITUTIONAL ECN'S RELAY THE SIMPLEST BIDS FROM INSTITUTIONAL MARKETS MAKERS LIKE BANK TO BANK AND OTHER INSTITUTIONS. AND THEREFORE THE RETAIL ECN'S OFFER QUOTES FROM TRADERS AND BANKS ON THE ECN TO RETAIL ECN TRADE . MARKET MAKERS PROVIDE A SORT OF LIQUIDITY TO THE STOCK EXCHANGE, AND NEED TO TAKE THE OTHER SIDE OF YOUR TRADE. AS AN EXAMPLE OF YOU SELL THE MARKET MAKERS MUST BUY AND THE OTHER WAY AROUND. THESE EXCHANGE RATES ARE SUPPORTED THE MARKET MAKERS OWN INTERESTS. AND THERE ARE TIMES WHEN MARKET MAKERS MAY EVEN HOLD AN ORDER AND TRADE AGAINST YOU. ON THE OPPOSITE HAND AN ECN BROKER PASSES ON PRICES FROM MANY MARKET PARTICIPANTS, LIKE MARKET MAKERS AND BANKS AND DISPLAY THE SIMPLEST AS QUOTES AND BEST BID ON THEIR TRADING PLATFORMS SUPPORTED THE SAID PRICES. AN ECN BROKER USES PROFESSIONAL ECN BROKERS STRATEGY AND IS A COUNTERPART TO ECN BROKERS TRANSACTIONS AND OPERATES ON SETTLEMENT INSTEAD OF PRICING BASIS. YOU'LL SEE WHAT THE IMPORTANT SUPPLY AND DEMAND IS FOR THE MARKET AS ECN REVEAL TRUTH MARKET DEPTHS. THESE BROKERS ARE DIRECTLY CONNECTED TO THE INTERBANK TRADING. ECN BROKERS DON'T ECN TRADE AGAINST THEIR CLIENTS BUT INSTEAD FORWARD THE ORDERS ONTO INTERBANK TRADING. STRONG EXTENSIONS AND POWERFUL HUNTING OF ANY SPREAD DOESN'T OCCUR BECAUSE THE ECN'S MAKE SURE YOU CATCH ON THE ECN BROKERS MARKET AND GAIN.

12. What Are Electronic Communication Networks (ECN)? TODAY EVERYONE WHO'S INVOLVED IN OPERATIONS ON THE US STOCK EXCHANGE KNOWS ABOUT ECN BROKERS. BUT THERE AREN'T MANY OF US WHO REALLY UNDERSTAND THE ESSENTIAL PRINCIPLES OF ECN BROKERS. THIS TEXT EXPLAINS THE FOREMOST IMPORTANT THINGS ABOUT ECN BROKERS SYSTEMS. ECN IS AN AUTOMATIC COMPUTER TRADING SYSTEM. THE PRIMARY ECN WAS INSTINET - A TRADING NETWORK ESTABLISHED IN 1969, LONG BEFORE THE TERM ECN BROKERS LIST APPEARED IN DICTIONARIES. MOST OF THE OPPOSITE ECN FOREX BROKER (ISLAND, REDI, ARCHIPELAGO, BLOOMBERG, BRUT) ARE BUILT ON THE PRINCIPLES OF THE PRIMARY ECN - INSTINET. NEW RULES OF ORDER EXECUTION BECAME A CATALYST FOR THE INTENSIVE ECN BROKERS LIST DEVELOPMENT. NEW RULES WERE APPROVED AFTER AN EXTENDED DISCUSSION WITHIN THE INVESTORS' COMMUNITY, ALSO AS IN BROKERAGE HOUSES. THE MOST GOAL OF THE NEW RULES WAS THE MODIFICATION OF THE PREVAILING ORDER EXECUTION ALGORITHMS IN ORDER THAT EVERY INVESTOR COULD GET THE SIMPLEST POSSIBLE PRICE BY AN ORDER SUBMISSION, WHETHER HE BUYS OR SELLS SHARES. NEW RULES WERE TO TERMINATE ALL MARKET-MAKERS' OPPORTUNITIES TO REALIZE EXTRA TAKE ADVANTAGE OF UNFAIR ORDER EXECUTION. ECN BROKERS MANAGE THIS TASK WITHIN THE ABSOLUTE BEST WAY. BY THE WAY, ECN FOREX BROKER ALLOW PERFORMING ON THE STOCK EXCHANGE WITHOUT MARKET-MAKERS MORE EFFICIENTLY.

13. THE FIRST TASK OF ECN BROKERS LIST SYSTEMS IS TO EXECUTE BUY ORDERS BY SELL ORDERS OF EQUAL VOLUME. THIS PROCESS GOES AUTOMATICALLY, FOR INSTANCE, IF THE SYSTEM RECEIVES A SELL ORDER FOR 1000 SHARES OF XYZ INC. AT $10 PER SHARE, IT'LL SEARCH FOR AN EQUIVALENT BUY ORDER (I.E., AN EQUIVALENT AMOUNT OF SHARES AT A SPECIFIC PRICE). AUTOMATED SEARCH OF TWO EQUAL ORDERS IS THAT THE FASTEST AND THEREFORE THE BEST WAY OF FULFILLING ORDERS. BY THE WAY, FIFO EXECUTION PRINCIPLE (FIRST IN FIRST OUT) GUARANTEES INDIVIDUAL INVESTORS A GOOD EXECUTION NOT COUNTING ON PERSONAL TRADING VOLUMES. SO, TODAY ECN BROKERS WORK AS A QUASI-STOCK EXCHANGE. IF AN OPPOSITE ORDER ISN'T FOUND WITHIN THE SYSTEM, AN ECN FOREX BROKER USES AN EQUIVALENT ALGORITHM BECAUSE THE NASDAQ DOES: IT TRANSFERS THE SIMPLEST AVAILABLE BID AND OFFER TO THE NASDAQ. NASDAQ'S LEVEL 2 INFORMATION SCREENS SHOW THIS QUOTES UNDER THE NAME OF THE ECN.

14. WHEN THE BID OR OFFER OF THE ECN BECOMES THE SIMPLEST AMONG AVAILABLE ON THE NASDAQ, ANYONE WHO IS FOLLOWING NASDAQ QUOTES, ENTERS HIS OPPOSITE ORDER AT AN EQUIVALENT PRICE WHICH RESULTS IN THE EXECUTION OF THE ORDER, ORIGINALLY ENTERED WITHIN THE ECN BROKERS. THUS, ECN FULFILLS TWO FUNCTIONS: IT'S AN ELECTRONIC QUASI-EXCHANGE AND A MARKET MAKER WITHIN THE TRADING SYSTEM NASDAQ. UNDER THE PRINCIPLES OF THE SECURITIES COMMISSION (SEC), ECN BROKERS LIST ARE OFTEN REGISTERED AS AN ELECTRONIC STOCK MARKET, I.E., THEY'RE OFFICIALLY RECOGNIZED AS STOCK EXCHANGES. ECNS' ADVANTAGES THE MAIN ADVANTAGES ARE: ANONYMITY, AUTOMATED ORDER EXECUTION AND LOW COSTS. BUYERS AND SELLERS CAN PUT THEIR ORDERS INTO ECN BROKERS LIST AND NOT WORRY THAT INFORMATION ABOUT THEIR ACTIVITY WILL AFFECT THE MARKET. THERE'S COMPLETELY NO HUMAN THINK ABOUT ORDER EXECUTION, THUS FAR THE ELECTRONIC SYSTEM ACCEPTS AND EXECUTES ALL ORDERS. ECN BROKERS NOT ONLY SPEED UP THE TRADING PROCESS, BUT ALSO SPARE INVESTORS’ MONEY: THEY ARE DOING NOT ATTEMPT TO MAKE EXTRA CASH ON THE DIFFERENCE BETWEEN THE WORTH

15. SO AS AND THEREFORE THE ACTUAL MARKET VALUE A BIT LIKE IT HAPPENS ON THE WAY "BROKER-NASDAQ MARKET-MAKER". TODAY MANY ECNS EXPAND TRADING TIME BY ADDING SEVERAL TRADING HOURS BEFORE AND AFTER AN OPEN MARKET SESSION. IT'S OBVIOUS THAT WITHIN THE NEAR FUTURE TRADING THROUGH ECN FOREX BROKER ARE GOING TO BE AVAILABLE AROUND THE CLOCK. ECN'S DISADVANTAGES TRADING IN ECNS IS EXTREMELY EFFICIENT IF YOU TRADE HIGHLY LIQUID STOCKS THAT HAVE TONS OF ONE-TIME BUY AND SELL ORDERS. THAT INCREASES THE PROBABILITY OF THE PRESENCE OF TWO ACTIVE OPPOSITE EQUAL ORDERS WITHIN THE SYSTEM. IT'S GOING TO BE NOT A REALLY GOOD IDEA TO TRADE LESS LIQUID STOCKS IN ECN FOREX BROKER. DURING THIS SITUATION IT'S BETTER TO SEND YOUR ORDERS TO TRADITIONAL MARKET-MAKERS OF THE NASDAQ. BY THE WAY, AN EQUIVALENT SHARE CAN HAVE DIFFERENT LIQUIDITY LEVEL IN SEVERAL ECN BROKERS LIST.