FXOpen's ECN really true ECN

[dennerle]

Realize that FXOpen's ECN spread jump by 0.5...

I've seen A.L.P.A.R.I UK's ECN is always jumping by 0.1..

Does that make FXOpen's ECN not that true ECN afterall?

Would like to hear more discussions about it

[FXSupporter]

Hello dennerle,


Price can hardly be a way to tell a true ECN from an 'untrue' ECN. however, it's useful to understand why prices are so different and what effect this can have on your trades.

FXOpen's ECN spread jump by 0.5...

This is the way prices are given to us by our liquidity provider. The minimum price change that you see in your Market watch is for example from 0.11110 to 0.11115. In this case we say that you get the minimum possible spread of 0,5 pips.
However, it doesn't mean that prices between 0.11110 and 0.11115 do not exsist. If you place an order at, let's say, 0.11113 - it will be accepted by FXOpen ECN and processed as soon as a matching order is found.

[dennerle]

Hello dennerle,


Price can hardly be a way to tell a true ECN from an 'untrue' ECN. however, it's useful to understand why prices are so different and what effect this can have on your trades.


This is the way prices are given to us by our liquidity provider. The minimum price change that you see in your Market watch is for example from 0.11110 to 0.11115. In this case we say that you get the minimum possible spread of 0,5 pips.
However, it doesn't mean that prices between 0.11110 and 0.11115 do not exsist. If you place an order at, let's say, 0.11113 - it will be accepted by FXOpen ECN and processed as soon as a matching order is found.

Hi FXSupporter,

I'm using the same EA on both FXOpen and Alpa's ECN demo..

Looking back at my history trades, the entry prices for FXOpen always end with a 0 or 5 on the fifth decimal place but with alpa's ECN, the fifth decimal is variable meaning to say can be any number between 0 to 9

The closing pips for FXOpen also always end with 9 pips or 9.5 pips but with alpa's, it;s like 9.6pips or 9.8pips etc

So was wondering whetehr FXOpen's ECN will have the same case as Alpa's ECN?

[FXSupporter]

Looking back at my history trades, the entry prices for FXOpen always end with a 0 or 5 .... ... ... The closing pips for FXOpen also always end with 9 pips or 9.5 pips

This is the way our liquidity provider sends prices to us. If you place market orders (buy and sell), they will be opened/closed at prices with a 0 or a 5 at the end. But you may place pending orders at prices between 0 and 5 at the end, and they will be accepted.

So was wondering whether FXOpen's ECN will have the same case as Alpa's ECN?

We just have different liquidity providers, that is all. Both our and their ECN can be true.

I'm using the same EA on both FXOpen and Alpa's ECN demo..

Does the difference in prices impact your EA performance in FXOpen account?

[dennerle]

This is the way our liquidity provider sends prices to us. If you place market orders (buy and sell), they will be opened/closed at prices with a 0 or a 5 at the end. But you may place pending orders at prices between 0 and 5 at the end, and they will be accepted.


We just have different liquidity providers, that is all. Both our and their ECN can be true.



Does the difference in prices impact your EA performance in FXOpen account?

Thanks FXSupporter for the explanation

[cmo_fxopen]

If you are looking for a true ECN you've founded it with FXOpen.

While I wouldn't want to say anything about other companies, the company you've mentioned is actually an STP, not an ECN, to the best of my knowledge.

Our ECN Liquidity Provider is Dukascopy, a Swiss Forex Bank and a well known ECN. If you like, you can test the feeds and see that they are identical.
Dukascopy's prices are also rounded to 0 and 5 at the 5th decimal as you've pointed and the reason behind this is that Dukascopy filters 'noises' and non-tradable orders/prices and only provides quotes at which you can instantaneously execute. Therefore, when you see a price at our Metatrader it's a price you can trade on after the 'noises' have been filtered out and the prices were in turn aggregated from about 25 Dukascopy's liquidity providers. This ensures you a full WYSIWYG - What You See Is What You Get - Trading.

For your knowledge, the most distinctive difference between ECN and STP is that traders (such as you are) are only price-takes on STP (that is, they can only buy the price they see but cannot introduce their own bid) while on ECN they are both price-givers and price-takers (that is they can both buy and enter their own orders into the spread and allow other traders to grab their orders).
This is the meaning of true ECN execution, and as I've pointed out, you can only do that on MT4 with us and not anyone else in the market.

You can read more about this here:
http://www.100forexbrokers.com/stp-ecn-brokers

and here:
http://forexmagnates.com/market-maki...pros-and-cons/
http://forexmagnates.com/finally-the...y-are-part-22/

[dennerle]

If you are looking for a true ECN you've founded it with FXOpen.

While I wouldn't want to say anything about other companies, the company you've mentioned is actually an STP, not an ECN, to the best of my knowledge.

Our ECN Liquidity Provider is Dukascopy, a Swiss Forex Bank and a well known ECN. If you like, you can test the feeds and see that they are identical.
Dukascopy's prices are also rounded to 0 and 5 at the 5th decimal as you've pointed and the reason behind this is that Dukascopy filters 'noises' and non-tradable orders/prices and only provides quotes at which you can instantaneously execute. Therefore, when you see a price at our Metatrader it's a price you can trade on after the 'noises' have been filtered out and the prices were in turn aggregated from about 25 Dukascopy's liquidity providers. This ensures you a full WYSIWYG - What You See Is What You Get - Trading.

For your knowledge, the most distinctive difference between ECN and STP is that traders (such as you are) are only price-takes on STP (that is, they can only buy the price they see but cannot introduce their own bid) while on ECN they are both price-givers and price-takers (that is they can both buy and enter their own orders into the spread and allow other traders to grab their orders).
This is the meaning of true ECN execution, and as I've pointed out, you can only do that on MT4 with us and not anyone else in the market.

You can read more about this here:
100forexbrokers.com/stp-ecn-brokers

and here:
forexmagnates.com/market-making-stp-and-ecn-what-they-are-pros-and-cons/
forexmagnates.com/finally-the-brokers-guide-explaining-what-market-maker-stp-and-ecn-brokers-really-are-part-22/

Thanks cmo_fxopen!

Now i got a clearer picture of it