A forex account is used to trade foreign currencies. Opening a forex trading account is a quite simple process these days given the growth of online forex trading. It requires some paperwork and few security steps, such as identity verification, and all can be done online. Typically, you open a forex account, deposit money and then buy and sell currency pairs or other trading tools.
But first, you’ll have to choose your forex broker, select an account type, register then activates your account. Once you register your forex account, you will be automatically emailed with the login details and access information for the MT4 platform.
What is ECN account?
The ECN account (Electronic Communications Network), is one of the forex account types commonly provided direct access to the market. ECN is an electronic system of order-matching execution by providing accessibility of orders being entered. ECN account is one of the most popular account types for forex traders due to the price transparency and ability to directly access the market. Typically, forex brokers provide this type of account as additional services to traditional accounts and charge a premium as commission fees per lot with a minimum deposit limit and lower leverage.
AximTrade offers a variety of options when it comes to forex accounts. Traders can choose the best account type based on their trading strategy, experience, and capital designed for investment. Choices include Standard, Cent, or ECN trading account. All AximTrade accounts offer negative balance protection with a low spread from zero to 1 pip on all majors. Traders can also enjoy a variety of forex bonus on all account types with a minimum deposit starting from $1. Any trader can hold up to 14 active trading accounts. You are allowed up to 7 Standard Accounts, 2 Cent accounts, and 5 ECN accounts per Active Member Area.
Features of Trading Accounts from AximTrade:
- Variety of account types including Standard, Cent, ECN, and Islamic
- Excellent customer service reachable through email, live chat, and more
- Tight spreads and low minimum balances reduce financial commitment
- Fast order execution with execution speed at 0.004s
- Minimum deposit of $1 and no commission
- Instant deposit and withdrawal, wide variety of payment methods
ECN Forex Account
AximTrade provides one of the best ECN accounts in the forex market. The ECN account provides one of the lowest commissions per lot which is $3. The minimum deposit for ECN accounts by AximTrade is $50 and this is highly competitive as the majority of ECN requirements can be relatively very high for regular forex traders. The minimum trade volume is 0.01 lots while the maximum tradable lot is 50 lots. The average spread on major pairs is as low as 0 pips. Traders can open up to 200 orders at a time. This account offers flexible leverage up to 1:1000.
ECN Forex Account
|Currency Pairs||All Currency Majors|
|Leverage||Up to 1:1000|
|Spread||as low as 0.0 Pip on Majors|
|Negative Balance Protection||Yes|
|Minimum Trade Volume||0.01 Lot|
What is the difference between true ECN and standard account?
Fundamentally, the real ECN account matches and executes orders without placing premiums on the raw spread. Initially, the ECN orders are commonly charged based on trading volume and these are a certain amount of commission per lot. While the standard account is usually a type of account where the spread includes the premium of the market-marker without adding extra commission to the trading volume.
The cost of an ECN account tends to be cheaper when the trade is above of certain trading volume. Eventually, some might assume that long-term traders can benefit from ECN to avoid premiums on the quotes, but the reality is that it isn’t highly beneficial for a longer-term trader they tend to not worry about the cost of the spread so much.
Basically, the standard account is can come with a fixed spread or floating spread. Each type of spread can have its advantages and disadvantages. The EURUSD pair is usually the lowest spread, but it can get more expensive than an ECN during the news releases. Yet, the standard account can provide more stable execution and better cost for day traders. Although getting the best quotes is a considered major factor in choosing a forex broker and account type, they do not represent execution quality, slippage, commissions fees, or any other trading conditions that might affect your trading strategy in the forex market.
Advantages of ECN Account
There are several advantages of ECN account that can highly benefit forex traders.
- Lower spreads: In the forex trading the traders need to pay a spread which is the difference between the best available buy and sell prices. While the buyer needs to pay the best available sell price offered (Ask price), while the seller is required to take the best available buy price (Bid price). Since the ECN instantly matches orders from traders with the best available buy and sell prices, the ECN provide lower spreads.
- Execution speed: With ECN executuion can be relatively faster than other types of trades since all trades are carried out immediately without requotes. Liquidity providers are motivated to deliver the best prices and lowest possible rates beat the competition and attract traders.
- Fixed comission: It is highly beneficial for some of the trading strategies to execute trades with comission at lowest spread possible. Therefore, some of the traders prefers comission-based trades. In this case, it is important to choose the broker with the lowest comission per lot.
How to Open a Forex Account
Follow these steps to open an ECN forex Account with AximTrade
- To open a forex account, log in to your member account from AximTrade login, and click on the “ + Open Extra Account” button on the top right.
- Select the ECN account and press “Open”.
- Name the Account and create both trading and investor passwords for your account. Note: the investor password should not be the same as the account password. Remember to use both uppercase and lowercase letters, use a combination of numbers and letters. Then click “Done”.
- Now your account is ready for trading. You can find all your accounts in the “My Accounts” tab.
How to Choose Your Forex Broker?
Take your time searching for a reliable forex broker so your money and trades will be handled appropriately. The main features of a reliable broker include efficient customer support, real-time market execution, suitable trading conditions, a wide selection of account types that suits different traders depending on their financial capabilities, providing advanced software for successful trading, secure and fast money depositing and withdrawal, competitive spreads and finally but not least is offering multiple trading options with various currency pairs.
Choose an ECN broker requires extensive research to establish a reliable, trustworthy, and long-term investment plan. While the majority of broker provides ECN account, the conditions might be inefficient on the long-term. You will have to consider several factors besides the commission rate and quotes, such as the deposit required, margin levels, execution quality, and slippage.
Another major feature to focus on is the broker’s regulatory compliance. You have to choose a regulated forex broker, which keeps you safe from scams and frauds. Remember that the safety of your money and personal information is highly crucial when you open a forex account as brokers can get hacked or go bankrupt.
AximTrade Regulation guarantees high levels of accountability and transparency that protect the interests of all traders. Aximtrade is regulated by the Financial Conduct Authority Scheme (BVIFSC) which ensures compliance with the highest international standards and best conduct of business practices. This means you won’t have to worry about your funds or the privacy and confidentiality of your transactions.
To be regulated by the FSC Financial Conduct Authority means:
- Protecting the interests of the general public and market participants.
- Ensuring industry compliance with the highest international regulatory standards and best business practices.
- Ensuring that the BVI plays its part in the fight against cross-border, white-collar crime while safeguarding the privacy and confidentiality of legitimate business transactions.
Check the full Aximtrade Review for more insights about the broker’s accountability and reliable services.
Why Choose AximTrade?
AximTrade is the ideal choice for forex traders and investors who are seeking the best conditions to access the market and start trading with ECN accounts. Traders who prefer flexibility and fast process registration consider AximTrade one of the best choices, as it is allowing traders to start with lower capital. Additionally, the platform is continually expanding its capabilities to serve all types of traders by providing flexible leverage, low opening balance requirements, tight spreads, and effective payment methods. See why traders choose to trade with the leading best broker, AximTrade.
AximTrade has been identified as a leading broker for its top-rated services and the diversity of trading options that suit individual trading needs. AximTrade successfully acquired regional and global recognition for its exceptional services, remarkable progress, and favorable trading conditions, including tight spreads and low minimum balances, reduced financial commitment, variety of account types, fast order execution, and highly responsive customer service, and a wide variety of payment solutions.
Enjoy favorable trading conditions with the AximTrade ECN account; especially when it comes to margin and leverage levels. Open your trading account now at AximTrade in a few easy steps, verify your documents and enjoy premium trading services. With minimum deposit requirements and a diversity of trading tools, explore luxury trading with the leading best broker.