To take an overview of Standard Account and True ECN, this blog is going to help you in knowing which one is more competitive. All the ECN brokers present at least two types of accounts to select from. On the other way, there is not much difference in the price. While trading with the ECN Forex broker, you might draw your attention towards the ECN broker as it comes with institutional-grade STP spreads, as well as zero commission. Let’s understand what the difference is between Standard Accounts and True ECN.
What is True ECN?
True ECN stands for Electronic Communication Network and it means that commuters are connected. It may seem like it is quite a broad term but when it comes to Forex trading, it seems quite advantageous. By using an ECN, you can also offer liquidity to the network. In trading, there are various bids and networks available out there. It means that the spread between the bids is quite tight. You can see that purchasing, as well as selling, can be done at the same price but with a commission. Because of these commissions, you must pay attention to these factors.
More information about True ECN
The price of this can be a little expensive because of the commissions. Generally, the Forex amount is half of the amount of PIP. It is quite cheaper if you have several in and out positions and also if you are a short term trader. However, it is not as advantageous as for a long term trader as it is for a short term trader as there is no need to worry about the cost of the transaction while opting for a long term one.
Standard Accounts
Standard accounts are the one that comes with the fixed spread. The USD or ECN network might offer a spread of something just like the 2 pips. But most of the time, it is more expensive than ECN. The downside of standard accounts is that you are a frequent trader and you must be paying something like 1.5 pips extra per trade. Most of them do not pay much attention to the
cost that is involved in execution, which may cost you a hefty amount if you are careless. In case, you want a position for weeks or days, nothing is going to make much change as there is not much difference in the cost that is involved.
Pay more attention to the costs
Based on the idea of expenses, you must consider which broker to opt for. At the end of the day, you must look at one thing that is whether the broker can give you a decent amount or not. The Forex traders have come a long way in these years and they are quite reliable now. To make money, you can either choose your Standard Accounts or a True ECN. But an ECN account
is considered to be more competitive and also popular compared to Standard Accounts. Forex trading requires expertise and in that case, iBull Capital is there for your assistance.