5 minute read
Is Skilling An ECN Broker? or Market Market? Review broker?
Is Skilling an ECN Broker or Market Maker? In-Depth Broker Review
Introduction
When selecting a forex broker, traders must determine whether a broker operates as an ECN (Electronic Communication Network) or a Market Maker. Understanding this distinction is crucial for making informed trading decisions. In this detailed review, we will analyze Skilling, a fast-growing broker, and determine whether it operates as an ECN broker or a Market Maker.
We will explore Skilling’s trading conditions, platform features, regulations, spreads, and execution models to provide an unbiased review for traders considering this broker.
What is an ECN Broker?
An ECN (Electronic Communication Network) broker acts as an intermediary between traders and liquidity providers. ECN brokers do not take the opposite side of a client’s trade. Instead, they provide direct market access, matching buy and sell orders within the network of banks, hedge funds, and other liquidity providers.
Key Features of an ECN Broker:
No Dealing Desk (NDD) Execution: Orders are executed directly with liquidity providers.
Tighter Spreads: Spreads are variable and often lower.
Commission-Based Fees: Instead of markup on spreads, ECN brokers charge a commission per trade.
Transparent Pricing: Traders receive raw market spreads.
No Conflict of Interest: Brokers do not trade against their clients.
What is a Market Maker Broker?
A Market Maker broker provides liquidity by creating an internal market where they take the opposite side of a client’s trade. This means that when a trader buys, the broker sells and vice versa.
Key Features of a Market Maker Broker:
Fixed or Variable Spreads: Spreads are generally wider than ECN brokers.
Instant Execution: Orders are filled at the broker’s discretion.
No Commission Charges: Market Makers earn from the spread markup.
Potential Conflict of Interest: Brokers may profit when traders lose.
More Stability in Volatile Markets: Less risk of slippage due to internal liquidity.
Skilling Broker Overview
Skilling is an online trading platform founded in 2016, offering CFD trading on forex, indices, commodities, and cryptocurrencies. The broker has gained popularity due to its user-friendly platform and competitive pricing.
Key Details of Skilling:
Founded: 2016
Regulation: CySEC, FSA Seychelles
Assets: Forex, Stocks, Indices, Commodities, Crypto CFDs
Platforms: Skilling Trader, Skilling cTrader, Skilling MetaTrader 4
Leverage: Up to 1:500 (depending on regulation)
Minimum Deposit: $100
Trading Model: ECN & Market Maker (Hybrid Model)
Is Skilling an ECN Broker or a Market Maker?
Execution Model & Trading Environment
Skilling operates on a hybrid model, meaning it offers both ECN and Market Maker execution. Traders can choose between different account types based on their preferences.
Standard Account (Market Maker Model)
Offers commission-free trading.
Features slightly wider spreads.
Orders are executed within Skilling’s liquidity pool.
Suitable for beginners and casual traders.
Premium Account (ECN Model)
Raw spreads starting from 0.1 pips.
Charges a commission per trade.
Orders are executed directly with liquidity providers.
Suitable for professional traders and scalpers.
Regulation and Trustworthiness
Skilling is regulated by CySEC (Cyprus Securities and Exchange Commission) and FSA (Seychelles Financial Services Authority), ensuring compliance with strict financial standards. However, traders should note that regulations differ by jurisdiction.
Trading Platforms
Skilling provides multiple platforms to cater to different trader preferences:
Skilling Trader: A proprietary platform designed for beginners.
Skilling cTrader: Offers ECN execution with advanced charting and automation tools.
MetaTrader 4 (MT4): Popular among forex traders for its custom indicators and expert advisors.
Spreads and Fees
Standard Account: Spreads start from 0.7 pips (Market Maker model, no commission).
Premium Account: Raw spreads from 0.1 pips with a commission of $3 per lot per side (ECN model).
Order Execution Speed
Skilling provides fast order execution with minimal slippage, especially on ECN accounts.
Market Maker accounts might experience requotes in high volatility.
Read more:
Pros and Cons of Trading with Skilling
Pros:
✅ Offers both Market Maker and ECN accounts. ✅ Regulated by CySEC and FSA Seychelles. ✅ Competitive spreads and low commissions on ECN accounts. ✅ Multiple trading platforms (Skilling Trader, cTrader, MT4). ✅ High leverage up to 1:500 for offshore clients. ✅ Fast execution with minimal slippage on ECN accounts.
Cons:
❌ Limited availability in certain countries (e.g., USA, Canada). ❌ FSA Seychelles regulation is less strict than EU regulators. ❌ Market Maker accounts may have wider spreads. ❌ No direct social trading or copy trading features.
Conclusion: Should You Trade with Skilling?
So, is Skilling an ECN broker or a Market Maker? The answer is both. Skilling operates on a hybrid model, offering traders the choice between Market Maker and ECN execution through different account types.
If you prefer commission-free trading with fixed spreads, the Standard Account (Market Maker model) is suitable.
If you are looking for raw spreads, direct market access, and commission-based trading, the Premium Account (ECN model) is the better option.
Final Verdict
Skilling is a reputable broker with strong regulatory backing, competitive spreads, and multiple trading platforms. Whether you are a beginner or a professional trader, Skilling provides a flexible trading environment to suit different trading styles.
If you seek true ECN trading, opt for the Premium Account with cTrader or MT4. If you prefer a simpler, commission-free structure, the Standard Account will work better for you.
Before trading, ensure to check Skilling’s latest fees, regulations, and available assets. Always trade responsibly and consider your risk tolerance.
