Exness True ECN
What Is an ECN Broker?
To determine whether Exness qualifies as a true ECN broker, we first need to understand what an Electronic Communication Network (ECN) broker is. An ECN broker connects traders directly to a network of liquidity providers, such as banks, hedge funds, and other traders, without acting as a counterparty to their trades. This peer-to-peer trading model offers several key advantages:
Direct Market Access (DMA): Orders are routed to the interbank market, ensuring trades are executed at real-time market prices.
Variable Spreads: Spreads fluctuate based on market conditions, often tightening to nearzero during high liquidity periods.
Transparency: Real-time bid and ask prices are sourced from multiple liquidity providers, reducing the risk of price manipulation.
No Conflict of Interest: ECN brokers earn revenue through commissions, not by trading against clients, aligning their interests with traders’ success.
Fast Execution: Orders are matched instantly within the network, minimizing delays and slippage, which is ideal for high-frequency traders.
In contrast, market maker brokers act as counterparties to their clients’ trades, creating an internal market.