What is an ECN broker?
CFD & Forex brokers are generally either Dealing Desk or Non-Dealing Desk brokers. Dealing Desk brokers are also called Market Makers.
But if we look further in the Non-Dealing Desk category, there are 3 more types.
- STP: Straight Through Processing
- ECN: Electronic Communication Network
- STP+ECN: Hybrid
ECN brokers use (as their name suggests) electronic communication networks to give access to markets for their users. They are also. Non-Dealing Desk brokers. Here, liquidity providers are interconnected in a form of a hub. Usually, commissions are fixed, with ultra-tight, floating spreads, with a 0.1 lot minimum.
What type of broker is IC Markets?
IC Markets is an ECN broker.