Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

cyberbob222

Profit: ECN Vs Market Maker

Recommended Posts

Hi All,

 

I may be asking dump silly question, i have noticed it just a few days ago:

After opening a demo ecn account, i am having 80% accuracy in trading, which means, most of my positions win.

It may be a case that my beloved broker tweaks the market maker version of platform.

 

Do you guys use ecn accounts? Did you find any difference besides spread, speed of execution?

 

In case anybody thinks i must be a genius, i can assure you i am not ;-)

I use standard indicators on MT5, nothing sophisticated. Ah, there is something, few days before i registered for ecn demo, i changed time frame, now i play on M30 hoping to scoop out longest trends - from 40 trades a day, i lowered down to 5 max, but quality ones with pip in range 10+, on all low spread pairs.

By the way, ecn spread rocks!

 

Hope you are all well.

Share this post


Link to post
Share on other sites
Hi All,

 

I may be asking dump silly question, i have noticed it just a few days ago:

After opening a demo ecn account, i am having 80% accuracy in trading, which means, most of my positions win.

It may be a case that my beloved broker tweaks the market maker version of platform.

 

Do you guys use ecn accounts? Did you find any difference besides spread, speed of execution?

 

In case anybody thinks i must be a genius, i can assure you i am not ;-)

I use standard indicators on MT5, nothing sophisticated. Ah, there is something, few days before i registered for ecn demo, i changed time frame, now i play on M30 hoping to scoop out longest trends - from 40 trades a day, i lowered down to 5 max, but quality ones with pip in range 10+, on all low spread pairs.

By the way, ecn spread rocks!

 

Hope you are all well.

 

No doubt Spread on ECN brokers are lot better than any Market Maker but on the other hand they charge commissions and their margin requirements are more than any Market Maker - You would also have maintenance balance to hold your positions and in that case watching all these things there is no different between Market Maker and ECN but obviously speed of execution matters and ECN are faster then market makers.

Share this post


Link to post
Share on other sites
Just curious, what kind of spread do you have on EUR/USD, and GBP/JPY. And what is the commission ?

 

i am testing Australian broker. eur usd - lowest was 0.6, usually 1 - 1.2, commision aud6 per lot round trip.

gbp jpy - sorry, can remember, i am changing soft on my pc.

 

i am looking into dax and dow right now, using market maker, and eur usd spread is wow! 1.3 pip.

 

if you would like to give ecn a go using real money, i know where to open one with ANY initial deposit /asked them to let me try due to bad experiences with their competitors/, pm me, i ll give you link.

Share this post


Link to post
Share on other sites
Hi All,

 

I may be asking dump silly question, i have noticed it just a few days ago:

After opening a demo ecn account, i am having 80% accuracy in trading, which means, most of my positions win.

It may be a case that my beloved broker tweaks the market maker version of platform.

 

Do you guys use ecn accounts? Did you find any difference besides spread, speed of execution?

 

In case anybody thinks i must be a genius, i can assure you i am not ;-)

I use standard indicators on MT5, nothing sophisticated. Ah, there is something, few days before i registered for ecn demo, i changed time frame, now i play on M30 hoping to scoop out longest trends - from 40 trades a day, i lowered down to 5 max, but quality ones with pip in range 10+, on all low spread pairs.

By the way, ecn spread rocks!

 

Hope you are all well.

 

there is high probability that you would not get the same results with MM account. The reason is that ECN brokers offer much lower spreads and faster executions. Likewise, MM usually send back requotes and you cannot always get the market's real price, unlike an ECN broker that gives you the actual prices. However, some brokers published as ECN but they are not really functioning as ECN so I recommend you test their demo accounts first. From my experience, I can definitely say that etoro and sunbirdfx are examples for ECN brokers that give great trading experience, low spreads and the fastest executions. Good Luck!

Share this post


Link to post
Share on other sites
there is high probability that you would not get the same results with MM account. The reason is that ECN brokers offer much lower spreads and faster executions. Likewise, MM usually send back requotes and you cannot always get the market's real price, unlike an ECN broker that gives you the actual prices. However, some brokers published as ECN but they are not really functioning as ECN so I recommend you test their demo accounts first. From my experience, I can definitely say that etoro and sunbirdfx are examples for ECN brokers that give great trading experience, low spreads and the fastest executions. Good Luck!

 

I do not think great trading experience means only low spreads and the fastest execution. these are mostly what scalpers need.

Share this post


Link to post
Share on other sites

ECN give you no conflict of interest, where MM make money from your lose, there are many horror story of MM manipulation like re-quote and other plug-in so they make more money from your loss.

 

Also, you must rememeber that demo trading is virtual trading, you wont have latency and any slippage as the order doesn't go anywhere (like liquidity pool). Demo should be used for pricing guide only.

 

Many brokers offer lower spread that you mention on real ecn like 0 pips usdjpy and 0.3 eurusd with lower ecn commission 0.7 total is fair I think

Share this post


Link to post
Share on other sites

I forget to say that profit withdraw can be problem with market maker too - when you trade ecn or stp, the liquidity provider is responsible to pay your profit, you have to remember this

Share this post


Link to post
Share on other sites

I prefer ECN brokers to market markers. I get to trader against the market not against the broker, the ECN broker gives me very tight leverage, as tight as 3.0 pips and 2.0 from Profiforex, and finally my trades are executed instantly with an ECN trader instead of waiting to pair it with another trader’s order.

Share this post


Link to post
Share on other sites
I prefer ECN brokers to market markers. I get to trader against the market not against the broker, the ECN broker gives me very tight leverage, as tight as 3.0 pips and 2.0 from Profiforex, and finally my trades are executed instantly with an ECN trader instead of waiting to pair it with another trader’s order.

 

Hello realforexer,

 

Really ECN do that? okay then i also like to test that. Actually i am also looking for a good broker which give me full satisfaction as i want and also their rule. let`s see what happened :missy:

Share this post


Link to post
Share on other sites
Hello realforexer,

 

Really ECN do that? okay then i also like to test that. Actually i am also looking for a good broker which give me full satisfaction as i want and also their rule. let`s see what happened :missy:

 

perhaps he just mistype the spread, as far i know ECN brokers gives a low spread, some major charged below 1 pips but in return the demand a commision fee per transaction.

an average 0.2 pips EURUSD spread on my armada market ECN account.

yF2DpDL.jpg

and how to decide which are much profitable ECN or Market maker.

basicly ECN are condition where trader order are againts another traders, it's a trader vs trader, and this where liquidity provider took part as price bridge among firm.

okay.. how this profitable ECN.

i'm now with armada markets, 0.3 spread on eurusd, 0.7 in total charged per trade including commision.

suppose i had market maker account, with 3 pips eurusd spread.

because my trading style are scalpers, i executed 200 trades monthly.

and my monthly fee based on spread :

on ECN armada markets account would be - 0.7 x 200 = - 140 pips charged.

as at the market maker broker account : 3 x 200 = - 600 pips charged.

anyone still arguing, or had wasted time to compare such broker type, should check their own pocket, if you're value your money starting with value your account for each transaction.

Share this post


Link to post
Share on other sites
perhaps he just mistype the spread, as far i know ECN brokers gives a low spread, some major charged below 1 pips but in return the demand a commision fee per transaction.

an average 0.2 pips EURUSD spread on my armada market ECN account.

yF2DpDL.jpg

and how to decide which are much profitable ECN or Market maker.

basicly ECN are condition where trader order are againts another traders, it's a trader vs trader, and this where liquidity provider took part as price bridge among firm.

okay.. how this profitable ECN.

i'm now with armada markets, 0.3 spread on eurusd, 0.7 in total charged per trade including commision.

suppose i had market maker account, with 3 pips eurusd spread.

because my trading style are scalpers, i executed 200 trades monthly.

and my monthly fee based on spread :

on ECN armada markets account would be - 0.7 x 200 = - 140 pips charged.

as at the market maker broker account : 3 x 200 = - 600 pips charged.

anyone still arguing, or had wasted time to compare such broker type, should check their own pocket, if you're value your money starting with value your account for each transaction.

 

Thanks for this..................... :)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.