A broker that only profits when you make money. How does that sound? Strange? Weird? Unreal? We would imagine nothing less. The Forex broker market is cruel. The competition is getting higher every day, and everyone wants to survive. Hence, a broker mostly only cares about getting your business, then after that, they couldn’t care less if you make money or not. However, that is not the case with ECN brokers.
We will review and see what an ECN broker is, then we will discuss some top ECN brokers in South Africa.
ECN brokers in South Africa – what is an ECN broker?
ECN brokers in South Africa are a bridge that connects a small fraction of Forex traders to liquidity providers. It is commonly referred to as an alternative system or alternative trading network.
You can conveniently and efficiently trade with high liquidity providers, such as big firms offering stock exchange indexes from the comfort of your home. The best thing about ECN brokerage is that it is crazy fast; your trades are fulfilled in a fraction of a second.
ECN brokers are becoming very popular in South Africa because they only benefit when a trader makes money. Traditional brokers would benefit from a trader using their platform either way. The majority of traders find this proposition very attractive. Hence, we see an influx of traders switching to ECN brokers.
ECN brokers offer control to the traders. This has shifted the market trends and how it functions.
Everything sounds nice. But how does this all work? Is the ECN operation trustworthy? Let’s see. You should note that currently, a very small number of brokers are offering ECN accounts. However, our experts estimate this to change in the future pretty soon.
The ECN system puts all the buy/sell orders of a Forex pair into a single pool. Thus, when you search for an order, it finds it for you in a few seconds. This way, you are not dependent on your broker to look for the best order for you. You can check the list of orders and select one that suits you. As the Forex trading market, the ECN brokerage system is working 24/5.
The ECN system puts the trader in charge. You are no longer at the mercy of your broker to find some good orders for you. It is like one of those eCommerce search engines that explores all the online stores and look for the best order.
Top ECN brokers in South Africa
We have tried different brokers and compiled a list for your readers.
Tickmill is a very trusted broker in South Africa. The 100-dollar deposit limit is high. However, you benefit with the lowest spreads that any broker has to offer at 0.2 pips.
If you want a robust broker, then look no further. HotForex offers the best features at zero compromises.
ECN brokers in South Africa are getting popular. Traders welcome the transparent operation and trader-oriented operation that ECN brokers offer. We estimate almost every broker to switch over to ECN operation by next year.