Learn how to identify a true ECN/STP Forex Broker directly at MT4 trading platform!

This secret is hidden inside MT4 trading Platform. In this article we will explain you in detail how to identify a true ECN/STP Forex Broker directly at your MT4 trading platform. You don’t need to ask anyone, you can check it by yourself. This 9 min. read can save 2 years of your Forex trading losses.  
90% of your Forex trading loss is due to wrong selection of Forex Broker. So, it’s very important to learn how to identify a true ECN/STP Forex Broker directly at MT4 trading platform.  
 
Forex is a very lucrative market and it is attracting people everyday who are eager to invest their money and make it big in short span of time.
 
Due to it’s high interest among public, new Forex brokers are appearing in the market continuously.
 
There are countless number of Forex brokers in the trading world, so choosing the right one is absolutely crucial to start your trading journey.
 
This is a very serious cause of concern and we traders must initiate proper steps in identifying them. This would not only help to eradicate scam brokers but will also improve your percentage of return in the long run.
 
In the past, most Forex Traders knew nothing about the Market Maker, and True ECN/STP brokers. But now that traders have learned what these brokers are, they insist to open their live accounts only with True ECN/STP brokers.
 
This has caused many of the Market Maker brokers to pretend to be an ECN and STP broker, whereas they are Market Maker Brokers behind the scene.

Are brokers pretending to be a true ECN/STP Broker?

There are so many articles available on net about identifying a True ECN Broker.
 
All of them claim to identify it through brokers trading conditions like – Fixed or Zero spread, Swap, Lot Size, Leverage, Negative Balance Protection, Bonuses, restriction on scalping etc. etc.
 
But these trading conditions are adjusted by brokers at their own websites, to pretend as trading conditions of a True ECN broker.
 
And once you start trading on their LIVE account you realize that trading conditions in real trading environment is totally different than what they usually mention in their website.
 
In a True ECN execution, broker should send your trade directly to his Liquidity Provider. But, 90% of Forex Brokers execute your trades on their own platform, and in some cases they even trade against you.
 
Don’t forget that in Market Maker business model, your loss is their profit.
Order execution between trader and LPs
Order Execution at true ECN/STP Forex Broker

Follow below steps

A. Install your Brokers MT4 trading platform at desktop and login your LIVE trading account. Don’t login DEMO trading account at MT4.
 
B. Open “Order window”, by clicking “New Order” or by pressing “F9” button.
 
Now here, inside this “Order window” you will find the secret to identify a true ECN broker.
 
In “Order window”, MT4 has different functions (programs) to integrate ECN broker and Market Maker broker.
 
In “Order Window” you need to check 2 functions
 
1. Order Type – Instant Execution or Market Execution? and

2. Pending Order’s points/pips.
 
Both functions will confirm you if your Broker is an ECN or Market Maker Broker.

1. Order Type

A) In case of Market Maker Broker, “Order Window” will have “INSTANT EXECUTION” function, as shown in below picture. 
Market Maker has Instant Execution in Order window
B) But, in case of ECN and STP Forex Broker, “Order Window” will have “MARKET EXECUTION” function, as shown in below picture.
A true ECN/STP Forex Broker has Market Execution in order window
CONCLUSION :
 
1. Market Maker Broker – If in “Order Window” you will see “Instant Execution” function, it means this broker is a Market Maker Broker.
 
2. ECN and STP Broker – If in “Order Window” you will see “Market Execution” function, it means this broker is an ECN and STP Broker.

2. Pending Order's Pips or Points

A) In case of Market Maker Broker, in “order window” when you select “Pending Orders”, at the bottom it says, “Open price you set must differ from market price by at least X points“.
 
This “X points” can be any number for exa – 3, 5, 10, 30 points or pips. In below example it’s 30 points, but it can be any number which varies from broker to broker.
Market Maker has some Points/numbers in Pending order window
B) In case of ECN and STP Broker, in “order window” when you select “Pending Orders”, at the bottom it says, “Open price you set must differ from market price by at least 0 points“.
 
Here you will NOT find any other number except “0” points. It’s always “0” points, if it’s an ECN and STP Forex Broker.
A true ECN/STP Forex Broker has Zero points in Pending order window
CONCLUSION :
 
1. Market Maker Broker – In case of a Market Maker Broker, in “order window” in “Pending Order”, at the bottom it always says “Open price you set must differ from market price by at least 3, 5, 20, 20, 30 points”
1. ECN and STP Broker – In case of a ECN/STP broker, in “order window” in “Pending Order”, at the bottom it always says “Open price you set must differ from market price by at least 0 points”
If you found any other number except “0” points, it means that your broker is a NOT an ECN/STP Broker.
Some Forex Brokers has "Market Execution", but in their "Pending Order" function, at the bottom you will find some numbers which means they are not a true ECN/STP broker.
So, it’s important to check both the points. If any one of the above two points is not fulfilled, it means they are not a true ECN/STP Forex Broker.
 
Wants to know Top 3 true ECN/STP Forex Brokers globally in 2019? Check below:
If you enjoyed this post and think that it can help you in protecting yourself from manipulative Forex Brokers, we would be very grateful if you’d help to spread this post by emailing or sharing it on Twitter or Facebook or LinkedIn to create awareness about true ECN/STP Forex Brokers. Thank you.
 
Happy Trading Tradestie!.
Ehren Alscher

Ehren Alscher

Ehren is a highly motivated and accomplished Forex trader with over 8 years' of experience in Forex trading. He worked with reputed Forex Brokers as a Market Analyst. He has done in-depth SWOT analysis of Forex Brokers and value added services. In his free time he likes to play tennis and chess.

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