What is?
An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges. An ECN is generally an electronic system that widely disseminates orders entered by market makers to third parties and permits the orders to be executed against in whole or in part. The primary products that are traded on ECNs are currencies, stocks and coomodities.
Advantages of Investing through ECN Brokers
ECN brokers have advantages that are not owned by other types of brokers. A futures brokerage firm with ECN broker type allows customers to be able to transact without requotes, without dealing desk and very low cost, because the instruments price are directly from global financial market.
ECN brokers are also more excellent than another investment methods, which are, financial instruments requires a longer period of investment, but offer lower returns on investment and liquidity.