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The ECN concept in interbank transactions

More and more often forex brokers are offering clients access to trading on the interbank market. ECN is the best way to organize this trading. It brings together a large number of financial market and forex market participants.

The Electronic Communication Network (ECN) is an electronic system for organizing and executing transactions to buy and sell financial assets on the interbank market. On the international currency market, it is essentially a platform or network on which liquidity providers (for example, major financial institutions) and individual forex traders perform trades between themselves, without any intermediaries.

All of the platform's participants' trading orders enter a common database of orders. Opposing orders are executed when their basic parameters match (asset, volume, price). This is how any ECN platform realizes its main function: the system automatically selects matching orders and executes them.

The best-known and biggest ECN platforms are Currenex, HotSpotFXi, Integral, and FX Alliance (Fxall). The combined trading volume of the participants of these platforms makes up a significant share of all forex trading.

EXNESS offers its clients access to the interbank market through a system based on a software aggregator that coordinates the execution of client orders at the best prices among a large number of well-known brokers and banks that are connected to it.

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