Forex Electronic Communications Networks: What Is A Forex ECN?

There are two main types of foreign exchange brokers: there are market makers and there are electronic communications networks.

A foreign exchange electronic communications network or ECN is the way that the true interbank market operates because it is a large interconnected network that matches up buy and sell orders.

For the most part most individual forex traders are going to be dealing with only a market maker broker, since these types of forex currency trading brokers can usually provide the most amenities to an individual trader such as the best graphics interface on your trading platform.

It is important to know whether you are dealing with a market maker broker or an electronic communications network.