ECN/STP Broker
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thread: ECN/STP Broker

  1. #1

    ECN/STP Broker

    Hi folks,

    It has been AGES since I posted but I'm posting here now because it might be the only place that I'll get some'right' answers (and I'm assuming that this is the correct forum to be posting this query )!!! LOL!!!

    One might believe that after all this time I would understand this but I really don't really:

    EXACTLY what's an??? And what would be the benefits / disadvantages (if any) of trading with an??? And assuming that there are benefits: does anyone know of a decent???

  2. #2
    For a Fantastic explanation of ECN and STP check These Links out below

    http://en.wikipedia.org/wiki/Electro...uniion_Network

    http://en.wikipedia.org/wiki/Straigh...ugh_Processing

    and Now I must Insert

    http://en.wikipedia.org/wiki/Direct_Market_Access


    YesI would check out http://apbg.com...
    Thank You for your Initial post on FF. Glad you are not pushing a broker with it.

  3. #3
    Dear fintrans,


    An ECN is a live swap kind book working against the best bid/offer of quotes. By trading through an ECN, a currency trader generally benefits from higher price transparency, faster processing, higher liquidity and more accessibility in the marketplace. The banks also reduce their prices since there is less manual effort. Many brokers claim to be ECN brokers, but their trading does not signify an order book. They derive their prices from an ECN system, but they actually provide only the very best market BID/ASK quotes instead of an order book with market depth. You would be able to take complete benefit of an ECN platform just in case you've got the market depth (providing complete insight of the market), partial execution and the ability to set offers within the spread.


    We would like also to exhibit our new ECN/STP module and invite all traders to open demo account and examine it. With one account from the ECN/STP module at Delta Trading our customers can trade with a several brokers one of which FXCM, Deutsche Bank, Interactive Brokers and Deltastock at complete transparency of their market. You are able to choose a particular liquidity supplier, or implement your transaction in the best current price regardless of the broker. You can also track with which broker your order was executed together and at what price. The ECN/STP module permits you to benefit both from reduced spreads and reduced transaction price. Due to the competitiveness between the liquidity suppliers in the module the spreads falls to 0.1 pips, which despite the commission of 0,003% - 0,005%, are still fairly aggressive. Along with the reduce transaction costs comes from the opportunity to trade from 1 account with different brokers, never to open unique ones. If you have any questions we will be delighted to assist.


    Regards,
    Deltastock

  4. #4
    Junior Member Sanchwz1962's Avatar
    23
    Hi folks,

    It has been AGES since I posted but I am posting here today since it may be the only place that I'll get some'right' replies (and I am assuming that this is the right forum to be posting this query )!!! LOL!!!

    One would think that after all this time I'd understand that but I don't really:

    EXACTLY what's an ECN/STP Broker??? And what are the benefits / disadvantages (if any) of trading with an ECN/STP Broker??? And supposing that there are benefits: does anybody know of a decent ECN/STOP Broker???
    http://forum.mql4.com/31514

  5. #5
    ECN is trading one of other traders, whilst STP is passed on to a bank/liquity provider. The trader isn't carrying the order, so they should not take a opposite of your trade. Only market makers will. Assuming the ECN and STP is 100% just what they say you will find.

  6. #6
    Hey thanks everybody for the input etc..

    I'm now testing Deltastock's L2 module but I have a question (for your Deltastock representative who published above):

    When I'm at the L2 module I find I can select from the various counterparties as detailed here on your site: http://www.deltastock.com/english/platforms/level2.asp. What I CANNOT figure out though is why orders are only revealed when I have selected'Delta' because the counterparty (or'SMART')??? In other words: should I select IB (which from what I gather is really Interactive Brokers) then no orders are shown. I hope I'm asking the question correctly (if not: sorry).

  7. #7
    ECN is trading one of other traders, whilst STP is passed to some bank/liquity provider. The trader isn't carrying the order, so they should not take a opposite of your own trade. Only market makers will. Assuming the ECN and STP is 100% just what they say you will find.
    Dear codycuncan,

    The definitions you give for ECN and STP are correct. Let me explain why we are a true ECN/STP and why we are a counterparty to all clients' transactions:

    1. We think that the major idea of the Forex ECN is to resemble stock market trading as far as you can. By way of instance, clients' limit orders are exhibited in the orderbook under Deltastock's title. Moreover they could be put within the spread, which really creates additional liquidity. The limit orders filed by the clients in the orderbook are instantly visible to all. Thus traders can place trade orders . That defines the genuine ECN surroundings in which we act too as a liquidity provider. That could be easily checked with other MT4 Brokers, which claim they are ECNs -- you just need to place orders with two distinct accounts.

    2. It is our policy to operate with liquidity providers which are established and well-known names in the industry -- Interactive Brokers, Deutsche Bank, FXCM, Citibank, Dukascopy. Regrettably we can add a limited number of liquidity providers, due to technological reasons. Deltastock keeps accounts using its suppliers and orders are put through those accounts. Subsequently, Deltastock stays a counterparty to clients' transactions, no matter that it functions as intermediary, because all orders are routed to the liquidity suppliers through the STP on the behalf.

    3. If our goal were to mislead our clients about our ECN, which could have been easily done. Simply, we would not have revealed the names of our liquidity suppliers in the orderbook, with the explanation that conflict of interest could have arisen, and we'd have claimed the quotes had been generated from more than 30 banks, brokers, etc. (Our price feed to get fixed-spread quotes is based on the liquidity supplied by numerous banks, brokers and market makers), and ultimately none of clients' orders could have been traced to some liquidity provider except to us.
    Additionally, if we were to mislead our clients and maintain all their orders , there might have been no need to need minimum and maximum order size, as are the demands of our liquidity suppliers. In our situation we do have a specific trading limitation with our liquidity suppliers, which we aspire to increase in time.

    The simple fact that the names of our liquidity suppliers are shown next to their dealable prices and trade quantity indies that we are providing a transparent ECN/STP.

    I hope the above information gives a very clear perspective of the functionalities of Deltastock's ECN/STP module.

    Best regards,

    Deltastock

  8. #8
    Hey thanks everyone for the input .

    I am currently testing Deltastock's L2 module however I have a query (for your Deltastock representative who posted previously ):

    When I am at the L2 module I find that I can choose from the various counterparties as detailed here on your website: http://www.deltastock.com/english/platforms/level2.asp. What I cannot figure out though is why orders are only revealed when I've chosen'Delta' as the counterparty (or'SMART')??? In other words: should I choose IB (that from what I gather is really Interactive Brokers)...
    Dear fintrans,

    There are a couple of reasons why You Might not be able to see supplies from liquidity providers other that Deltastock:

    The liquidity providers do not supply offers for many currency pairs accessible Delta Trading, so for some of them you will simply have the ability to view Deltastock's offers. Also, the liquidity providers have different work hours and you cannot see their offers in the period when they're closed. Interactive Brokers, such as don't supply offers in the period 00:00 EET -- 00:30 EET. If you are a live client and have been so before we found the ECN/STP module, then you will need to renew your contract or you will only see”Deltastock” in the order window. If That's the case, please contact for advice on how to proceed. Best regards,

    Deltastock

  9. #9
    Garc?a
    Guest
    Hi there when you state banks are participating just how do their prices coming to a ECN

    Dear fintrans,


    [size=2]An ECN is a live swap kind book working against the ideal bid/offer of each quotes. By trading through an ECN, a currency trader generally gains from greater price transparency, quicker processing, increased liquidity and more accessibility in the marketplace. The banks also decrease their costs as there is less manual effort....

  10. #10
    Hi there when you state banks are engaging how do their prices coming into your ECN
    Dear Karol,

    In Deltastock ECN/STP Level 2 module price quotes are payable with our liquidity suppliers in real time. The liquidity suppliers include: FXCM, Deutsche Bank, Citibank, Interactive Brokers, and Deltastock (Dukascopy bank to be added shortly ). The competition between the liquidity suppliers in the system narrows the spread and can fall as low as 0.1 pips. When received, customers' orders are immediately transferred into the liquidity suppliers quoted in the ECN via the tech Straight Trough Processing (STP).

    Best regards,
    Deltastock

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