You may have heard the term Forex Brokers but are unsure as to who they are or what they do. According to Investopedia, forex brokers access a number of platforms that allow them to buy and sell foreign currencies. What this means is that these brokers are able to trade one currency for another by purchasing a currency pair. For example, if you were interested in trading Euros for US dollars, the brokers could purchase a EUR/USD pair. To understand how ECN Forex brokers outperform other ones, it is imperative that you understand the value that these brokers bring to the economy.

Benefits of ECN Forex Brokers

ECN stands for Electronic Communication Network, meaning these brokers provide a link to smaller market participants who need to find liquidity providers through a Forex broker. There are many advantages to allowing these professionals handle your liquidity assets, including the following:

• Instant trading. ECN Forex brokers have the ability to make immediate trades in order to take advantage of the best prices in the marketplace. All prices are final due to the efficiency of the transaction, preventing price makers from interfering.

• Anonymous bidding. Some companies may be biased towards others, requiring them to either pay a higher or lower price than that of the market value. By doing your bidding through an ECN Forex broker, all bids are anonymous. This makes it impossible to be subject to unreasonable prices.

• ECN Forex brokers work for you. One of the benefits to hiring an ECN Forex broker is the fact that they are working for you, not against you. These brokers want you to receive the best price because they receive a commission based on each transaction. They want to help you get a reasonable price and will work with you to ensure that happens.

• Direct communication to liquidity providers. These brokers communicate directly with the liquidity providers instead of having to go through a third party. What this means is there is a reduced likelihood of prices being manipulated. ECN Forex brokers abide by the "what you see is what you get" transparent pricing.

• Excellent reputation in the brokerage community. When allowing these transparent brokers the opportunity to do your bidding and trading, you can rest assure that all deposits and withdrawals will be handled quickly and with care. Payments are guaranteed to be made on time, so there is no need to wait.

Knowing which ECN Forex Broker to use can be a daunting task. With so many to choose from, it may seem impossible to choose. There are several websites that will list the best ECN Forex brokers to use, making this chore a little bit easier. Fortunately, this is one type of broker that can be trusted to give market participants the best and fairest prices. You can also expect that all of these brokers will be on your side, no matter what liquidity provider you are interested in trading with. This list of advantages should help you make the decision as to what type of broker to trust.