Definition of ECN (Electronic Communication Network)
A type of broker or execution model that connects traders directly to liquidity providers (banks, institutions). ECN brokers typically offer tighter spreads and charge a commission per trade.
At a glance
Term
ECN (Electronic Communication Network)
URL slug
ecn-electronic-communication-network
Category
General
Short answer
A type of broker or execution model that connects traders directly to liquidity providers (banks, institutions).
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “ECN (Electronic Communication Network)” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “ECN (Electronic Communication Network)” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “ECN (Electronic Communication Network)” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
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FAQ
A type of broker or execution model that connects traders directly to liquidity providers (banks, institutions).
Knowing the precise definition of “ECN (Electronic Communication Network)” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “ECN (Electronic Communication Network)” as loose slang while your broker/platform specification defines it more narrowly.