If you’re considering opening an account at a crypto-currency exchange, you might be wondering whether you should go for an account ECN or a standard one. In either case, you’ll need to make a substantial deposit to qualify for an ECN account. Some brokers offer standard accounts with a lower minimum deposit amount – $100 in some cases – which are fine if you’re only looking to trade small amounts. An ECN account is more useful if you’re planning on trading several cryptocurrencies at once. Usually, ECN accounts come with a commission of around $3 per side.
The commission on an ECN MT4 or MT5 account is fixed per lot and taken when a position is opened. The commission differs based on the type of Account and currency. The commission on a Forex/Metals ECN account is three USD per lot, 2.6 EUR/lot, and 2.35 GBP/lot. For commodities and Indices, the commissions are higher – 15 USD per lot for Spot Indices, whereas for crypto-currencies, they are higher – five thousand NGN/lot.
While MT5 Pro accounts are best for serious traders, they require a larger minimum deposit. MT5 Pro accounts are best for investors who trade large volumes. MT5 Pro accounts also have lower costs than ECN accounts because commissions are paid over the spread. Other ECN accounts, such as cTrader, are based on the cTrader trading platform and use the ECN trading network. Those who wish to scalp the markets should consider AvaTrade, as they offer fixed spreads. They also provide a good level of protection in volatile markets.
You can obtain an ECN account by applying to a computer in the Business Office. This requires a Purdue Career Account, which is already a required part of the university’s directory. If you are currently a host at a Purdue University event, the host can provide you with your Career Account information so that you can meet with a Business Office representative. The Business Office rep can then fill out the Request for Privileges form. Make sure that you specify that you are not an employee, and that you don’t need a Soc Sec number. Once your application is approved, the Business Office will provide you with login information for your Purdue account.
The advantage of an ECN account is that it exposes traders to actual market liquidity, rather than just quoted by brokers. Standard STP accounts, on the other hand, are bridged to exchange houses or larger brokers, and therefore have a higher re-quote rate. Because of this, many traders prefer an ECN account. An ECN account ensures that your position will be filled at the strike price, so you can rest easy knowing that you’re getting the best price.
In liquid markets, an ECN account can provide tighter spreads, which STP brokerages can’t match. However, this advantage can be negated by the cost of an STP account, which offers similar ease of execution and lower costs without the dealing desk. But the choice is ultimately yours and your budget. As with any financial transaction, the cost of ECN trading is dependent on the quality of service and the liquidity of the markets.
An ECN account gives you direct access to the real market, allowing you to make decisions based on the demand and supply of different currencies. ECN accounts are usually used by professional traders, and you cannot participate in forex trading contests with other ECN users. So, it’s vital to choose your broker wisely. If you’re looking for a standard account, you should look for a broker that offers a standard account as well.
A true ECN broker connects you directly to major financial institutions and market participants. But it can be expensive to sign up for an ECN broker, and they can charge you a high commission per transaction. This can’t be affordable for the average retail forex trader. And remember, if you’re only looking to trade small amounts, an account with a market maker might be a better option. So, before you decide on an ECN broker, make sure it’s a reputable company.