Comments on: FXOpen’s MT4 ECN is much better than originally thought

By: Michael Greenberg

Michael Greenberg — Wed, 14 Apr 2010 20:50:18 +0000

Paul, I’ve revealed the indentity of their LP a while ago: http://site13.miydim.com/fxopen-and-dukascopy-partner-up-to-provide-metatrader-4-ecn-to-dukascopy%E2%80%99s-clients/

By: Paul Repstock

Paul Repstock — Wed, 14 Apr 2010 20:26:08 +0000

Michael; If this is an ECN, how can you speak of a ‘large…unnamed..liquidity provider’???

The point of ECN trading is that the market provides both price and counterparty.

By: Michael Greenberg

Michael Greenberg — Sun, 11 Apr 2010 12:12:51 +0000

In FXOpen’s case it’s simple: you’ll see that the feed is 1:1 with the one of Dukascopy – which is a known ECN broker.

Two tests you can do with any broker who claims to be ECN are these:
1. You can insert an order INSIDE the spread: pick a currency where the spread is wide and liquidity isn’t too high and insert an order inside the spread. If the spread changed then this means it’s a real ECN broker.
2. Try inserting an order inside the spread and then buying it from yourself. Again, pick illiquid currency pair and see if that works. If you succeeded you’ll see two opposed positions on your MT4 screen with 0 P&L.

This obviously can be done only with ECN brokers (and even then not all allow this).
Hope this helps.

By: Acic

Acic — Sun, 11 Apr 2010 11:00:43 +0000

How can i asure it is really a ECN Broker ?

By: Mikekneip

Mikekneip — Mon, 13 Jul 2009 17:30:23 +0000

Looks like they have acces to the Swiss Forex Marketplace since they offer trading in the exact same pairs. anyway, it is an excellent source of liquidity and offers very competitive spreads. This makes FXOpen a very interesting alternative to some of the more well known brokers out there.

Way to go Fxopen!