While ECN Forex trading accounts are not common in the U.S., they do have the benefit of 0 pip raw spreads even if they have commission costs. We found the best ECN Forex brokers In the USA for low-spread trading.
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Our list of the Best USA ECN Forex Brokers:
| Broker Review | Our Rating | Regulation | Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | Visit Broker |
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84 |
NFA/CFTC FCA,CIRO |
0.0 | 0.2 | - | $7.00 | 1.50 | 1.5 | 1.4 |
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30 ms (May 2023) | $100 | 80+ (Spot) | - | 50:1 |
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52 | NFA/CFTC | 0.2 | 0.4 | 0.3 | 0.08%-0.2% | - |
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120ms | $0 | 105+ (Spot) | - | 30:1 | - |
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71 | NFA/CFTC | - | - | - | $6.00 | 1.2 | 1.9 | 1.4 |
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174ms | $450 | 80+ (Spot) | - | 50:1 | 50:1 |
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To determine the most suitable broker in the USA we first shortlisted the brokers with CFTC/NFA regulation. We then looked at the core factors that traders looking for an ECN broker look for including spreads, execution speeds, trading platform and customer service. We matched different types of ECN traders with the most suitable broker to meet their needs.
Forex Panel Score
Average Spread
EUR/USD = 0.8
GBP/USD = 0.8
AUD/USD = 1.7
Trading Platforms
MT4, MT5, TradingView, Forex.com Trading Platform
Minimum Deposit
$100
Why We Recommend FOREX.com
FOREX.com is our top pick for ECN-style trading. We were easily able to open an account and trade through MetaTrader5 within minutes.
Spreads can be as low as 0 pips and have a commission of $7.00 per lot each way. We thought their average execution speed of just 0.004 seconds and 99.57% of trades being completed in <1 second was most impressive. Plus, we were excited to see an active trader program allowing for lower trading costs for active traders.
Pros & Cons
Broker Details
Very few other brokers in the US have ECN (also called RAW) spread trading, and you can choose between some of the most globally popular trading platforms, such as MT4, MT5, and TradingView, which make FOREX.com stand out to us.
While most brokers only offer commission-free trading, we thought FOREX.com has a unique point of difference with their RAW spread account. As far as we know, FOREX.com is the only broker that actively promotes a commission-free account with ECN or RAW spread-style trading for American traders. Spreads can be as low as 0 pips with their RAW pricing account and have commissions of $7.00 to open and $7.00 to close ($14.00 in total).
Since RAW pricing accounts use interbank spreads, they are variable meaning slippage can occur. Fortunately, in our testing, we found FOREX.com has order execution speeds that average 0.04 per second, which we think is very fast and enough to give you confidence slippage shouldn’t happen too often. FOREX.com claims over 99.57% of trades with them are executed in under 1 second.
We also found FOREX.com improve your spreads when using a limit order. According to FOREX.com, they have automated the trading process so that 49.29% of trades have limit orders executed at or better than the requested price, with a 0.46 pips improvement on average. They also say 100% of orders are filled at or better than the limit order you set, which is great for scalping.
A big part of FOREX.com being our top pick for ECN traders is the fact that there is a wide selection of trading platforms.
FOREX.com offers MetaTrader 4, MetaTrader 5, the in-house developed FOREX.com platform and TradingView. All these platforms are excellent choices but if you wish to use the RAW Pricing Account then you won’t be able to use MetaTrader 4.
The broker is owned by the StoneX Group, a major name in the global brokerage industry, regulated by A-level regulators such as Australia’s ASIC, the UK’s FCA and Cyprus’ CySec.
Lastly, while we often aren’t impressed with most broker’s typical news and education resources, we found FOREX.com’s selection to be quite impressive and it was clear that the broker had put a lot of thought into building that part of their service.
FOREX.com ReviewVisit FOREX.com
Your capital is at risk ‘77.7% of retail CFD accounts lose money with FOREX.com’
Broker Screenshots
Forex Panel Score
Average Spread
Trading Platforms
IBKR Workstation, IBKR Global Trader, IBKR Mobile
Minimum Deposit
$0
Why We Recommend Interactive Brokers
Interactive Brokers impressed us with its available liquidity, the company’s financial stability and a huge range of financial instruments available to trade.
In general, we’re huge fans of interactive brokers, and if you’re an intermediate to experienced trader, particularly if you also trade stocks, futures or other asset classes, we recommend you look into opening an account with the firm.
If you’re a beginner trader though, we recommend you look elsewhere. If you need an ECN forex broker, FOREX.com is much simpler to open, the platforms and software are easier to navigate and you’ll receive better customer service.
Pros & Cons
Broker Details
Interactive Brokers, established in 1977, is a household name in the global trading community. The company offers access to practically every trading product in the world, with stocks on most global exchanges, futures contracts, options, CFDs, Forex, indices, cryptocurrencies and many more.
As a retail trader, you will be signing up for the IBKR lite trading account. This account has no minimum deposit an inactivity fees and also commission-free trading for US exchange-listed stocks and ETFs.
When signing up, we had to jump through certain hoops depending on the account settings we desired. For example, when we asked to open a margin account, we were asked for verification from our financial planner, to ensure that we had the financial capacity to safely trade with margin – this was much stricter than any other brokerage account we’ve ever opened.
When we navigated our way to spot currencies, we found that the commissions you pay are on a tiered program. If you trade more than USD 1 billion in total positions each month, you will pay less in commissions. While this is fine in itself, we found ourselves wishing they had a more simple fixed commission plan.
Commission rates start at 0.2 basis points with a minimum of $2. This means that if you trade $100,000, you’ll pay $2, or if you trade $500,000, you’ll pay $10 per side. We found this quite competitive with most retail brokers, especially when you combine it with IB’s tight spot currency spreads.
Another thing that impressed us was the size of liquidity in the IB FX platform. The company deals with 17 of the world’s biggest liquidity providers, meaning that if you trade very large sizes, such as 100s of lots, or you trade using a VPS, you’ll find IB is well suited for you.
When we opened our account, we could choose from three proprietary platforms: IBKR Client Portal, Trader Workstation, and IBKR Mobile and webtrader, each was mediocre for active traders, and all of the in-house IB platforms felt a bit old and clunky to us. It’s important to note that we were unable to use MetaTrader4 or MetaTrader5, they’re simply not offered by IBKR.
Most serious traders on IBKR, use third-party trading platforms. We use NinjaTrader when trading with IBKR, but some of our serious trader friends use SierraChart, cTrader and DAS Trader.
Broker Screenshots
Trading FX through an ECN broker can have both advantages and disadvantages. Here’s a simplified breakdown:
A true ECN Broker in a Forex Trading is a type of forex broker that uses an Electronic Communications Network to give you direct access to other participants in currency markets. This means when you place a trade, it’s matched with buy or sell orders of other network participants like banks, liquidity providers, and other traders. The key benefits are tighter bid-ask spreads and more transparency, as prices reflect the actual market conditions.
Unlike traditional brokers that may trade against you, ECN brokers connect your orders with other liquidity providers, charging a small fee for this service.
While beginner traders may prefer to trade a commission-free account because of its simpler cost structure and because they are more common in the U.S. ECN brokers are fine for beginners. Experienced traders prefer ECN accounts as the spreads are lower, and this is also true for beginners, but make sure you factor in the commissions as part of the overall cost.
We suggested Forex.com over Interactive Brokers for newcomers since, in our experience, opening an account with Interactive Brokers can be quite arduous, and their customer service hasn’t always met our expectations. For example, we had to complete an extensive application with Interactive brokers, which required us to provide a lot of documentation.
We also prefer the fixed commission with the Forex.com Raw Pricing account over the tiered commissions with Interactive Brokers. While Interactive Brokers tiered commission that may be cheaper (if you trade in large enough volumes), some may find it confusing.
Choosing the right ECN broker is an important early step on your trading journey. It’s about finding a reliable partner that fits your trading style and needs. Here’s a simple guide we’ve put together to help you make an informed decision.
Ensure the broker is regulated by the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA). This guarantees the broker adheres to strict financial standards and has a fair trading environment for their clients.
Look for a broker that offers account types suited to your capital and trading strategy. Some ECN accounts require higher minimum deposits but offer lower spreads and commissions.
Choose a broker that offers a wide range of forex pairs, including Major Forex Pairs, minors, and exotics. This variety gives you more opportunities to trade according to your interests and trading strategy.
Good customer support is essential, especially for new traders. We recommend choosing a broker that offers 24/5 support with multiple channels like live chat, email, and phone.
Ideally, the broker should offer top trading platforms like MT4 or MT5. A good platform will have reliable performance, a large range of charting tools and indicators, and backtesting. Some traders may wish to ensure the trading platform has Automated Forex Software trading or copy trading capabilities.
A broker that provides comprehensive educational resources and up-to-date market research can be invaluable, especially for beginners. This includes webinars, tutorials, and daily market analysis to help you make informed decisions.
To open an ECN forex trading account in the USA, start by choosing a broker like FOREX.com or Interactive Brokers. Visit their website and look for the account registration or sign-up option. You’ll need to provide personal information and financial details and possibly answer questions about your trading experience.
After completing the application, you may need to submit identification documents for verification. Once your account is approved, you can deposit funds and start trading. Remember, the process might vary slightly between brokers, so following the specific instructions on their websites is essential.
When choosing between interactive Brokers and FOREX.com for retail traders in the US, we find Forex.com to be the best choice in terms of Trading Platforms selection.
FOREX.com offers Forex.com Trading Platform, MetaTrader 4, MetaTrader 5, and TradingView, which are the most popular and widely used trading platforms globally among retail traders. These platforms are well-regarded for their user-friendly interfaces, robust analytical tools, and broad functionality. They cater well to the needs of retail traders, offering a range of features for charting, analysis, and trade execution.
Interactive Brokers have their own customer trading platform called IBKR Trader Workstation (TWS). The IBKR platform comes with many advanced trading features which makes the platform a good choice for advanced traders but maybe not so good for the average traders.
Yes, the Best MT4 Brokers are compatible with ECN. We’ve found that many ECN brokers offer MT4 due to its popularity and robust features, allowing traders to access deep liquidity and real-time pricing directly from the market.
In the US, ECN accounts are regulated by bodies like the CFTC Regulated Brokers and must adhere to rules set by the National Futures Association (NFA). These regulations ensure transparency, fairness, and protection for ECN account traders. View regulated providers on our forex broker comparison US section.
When you hear the term ECN accounts, this means prices are derived from the interbank market with no markup from the broker. So that the broker can make a fee for the service they provide, you will pay a separate commission in addition to the spread.
A Standard account has the spread marked-up by the broker to include their compensation.
Another difference is that a true ECN account won’t have a dealing desk, but a standard account will have one.
For FOREX.com, Forex Leverage can be up to 50:1 for retail traders, which is the maximum the Commodity Futures Trading Commission (CFTC) allows for trading. While most brokers, including OANDA and IG markets, allow leverage up to the maximum allowed by CFTC, Interactive Brokers limits leverage to 10:1-40:1, with major pairs such as EURUSD and GBPUSD attracting higher leverage.
As a trader, it’s not worth worrying about the difference between ECN and STP. Both use much the same liquidity providers, so the spreads you get are almost identical; it’s just marketing jargon.
STP, or Straight Through Processing, means the broker routes you to market participants in their liquidity pool. On the other hand, Electronic Communication Networks (ECN) acts as a kind of hub where liquidity providers can find your orders.
For the most part, you’ll find the same banks, hedge funds, and other market participants, regardless of whether you call it STP or ECN. Both have fast execution, so the best trading strategy is to find the Lowest Spread Forex Brokers.
It’s worth mentioning that very few no-dealing desk brokers use true ECN. The vast majority use STP or hybrid models.
ECN brokers provide direct access to the forex market, allowing traders to benefit from the best available bid and ask prices by various market participants, with the broker not becoming the counterparty to your trade.
Market makers have a dealing desk meaning they set the buy and sell prices and provide the liquidity so the trade can occur. As they have a dealing desk, the market maker is the counterparty to your trade. This can lead to a conflict of interest for the broker however good market makers have measures in place to ensure their spreads are competitive.
A No Dealing Desk (NDD) broker routes traders’ orders directly to the interbank market, avoiding broker intervention. This ensures faster execution and access to the best available prices. ECN and STP are types of NDD brokers that we’ve found to offer transparent trading conditions.
The maximum leverage offered by brokers in the USA for major currency pairs is 50:1, as mandated by the CFTC. This regulation is designed to protect traders from excessive risk and ensure a fair trading environment.
Yes, ECN accounts typically charge commissions for trading because they provide access to a direct market environment with tighter spreads. The commission rates vary among brokers, but they’re generally transparent and based on the volume traded.
US residents are not permitted to trade CFDs under the Dodd-Frank Act; because of this, very few of the Best Offshore Forex Brokers (not regulated by NFA or CFTC) will accept US clients.
Should you reside outside the US, such as in Australia, the UK or many European countries, you’ll actually find a wider choice of potential brokers that may interest you. Well-respected CFD firms to consider include Pepperstone, FP Markets, IC Markets or OANDA.
