Vantage FX is an Australian regulated ECN forex broker, but why is it so important to trade with an ECN broker? What are the benefits of trading with ECN broker over a traditional market maker?
An ECN Forex Broker Means no Conflict of Interest
When you trade with a traditional market maker, they lose money when you make money and they make money when you lose. See the problem? It’s not just that they don’t have a vested interest in their clients succeeding, they actually have an interest in them losing. Do you think a broker like that is going to provide you with the tools you need to succeed in trading?
On the other hand, ECN brokers don’t trade against their clients – they act as a middleman between their clients and their prime brokers and liquidity providers, taking a small commission along the way. As such, their income is derived solely from trading volume: if an ECN broker’s client loses all their money and stops trading, they have not gained anything and have lost a client. The ECN model completely negates the traditional client/broker relationship, bringing the broker’s interests in line with the client’s.
At Vantage FX, we want you to succeed. We want you to trade profitably, compound your account growth and progressively trade more volume. Your success is in our best interests, so we give you the tools you need to succeed.
ECN Means Super Tight Spreads
Zero conflict of interest is one great thing about the ECN forex broker model, but what our clients really love is super tight spreads. ECN brokers offer clients the best available spreads in the market – there is zero markup. Market makers often brag about their no commission models, but the fact is they inflate their spreads to a point which far exceeds a modest commission charge. This is simply a marketing ploy to catch new traders. Professional traders understand that paying a modest and fixed commission charge per trade works out a lot cheaper than taking a position with a 2 pip spread.
Vantage FX has some of the lowest spreads in the business. Our relationships with the world’s largest investment banks, prime brokers and dark pool liquidity providers, mean you never pay more than you should when placing a trade. Our commission charge is also the lowest in the country. Super tight spreads, and the best commission charge around – this is what you get when you choose to trade with Vantage FX.
Make the Switch to an ECN Broker Today
Ready to experience the ECN difference and take your trading to next level? Open a RAW ECN account today and start saving. Still not convinced? Our spreads and commission charges are the best in the business and we firmly believe you will save money as a Vantage FX client, but don’t take our word for it – test us out yourself on a free RAW ECN demo account by clicking the open account button on our best ECN forex broker page. You won’t be disappointed.
Source: Vantage FX Blog