ECN is the abbreviation of Electronic Communication Network. ECN connects traders with banks, brokers and other traders around the world, eliminating the traditional role of middleman. Based on KCM's long-term experience in providing liquidity services to the industry, KCM ECN provides a wide range of linking parties. Your trade will be matched to global liquidity providers through electronic communication networks, including quotations from major international banks.
ECN system trading (Stocks)
The first ECN trading system was established by Instinet in 1969 to trade stocks. Stockbrokers used the ECN system to reduce transaction costs while enabling customers to bid and trade outside of traditional trading hours.
Now Nasdaq and the New York Stock Exchange both use the ECN system for trading. The Nasdaq uses the ECN system as Inet, and the New York Stock Exchange’s ECN system is Archipelago Exchange.
ECN system trading (Forex)
The first ECN trading system for foreign exchange transactions was established by Matchbook FX in 1999. Previously, transactions were conducted by telephone and between major banks (such as Chase Bank, Goldman Sachs, UBS, Deutsche Bank or Citibank).
At that time, all prices in the system were directly provided by Matchbook FX traders, customers, and banks. Buyers and sellers used the system to quote, bid, and match orders to form transactions.
Why Trade With Kohle Capital Markets™ ECN:
- Low Spread. Provide probably the best trading conditions, ECN spread can be as low as 0.1 pips, and have minimal handling fee.
- FIX API trade Execution. In addition to KCM Kohle MT4, you can also link through our FIX API to achieve faster transaction execution.
- Multi-level Depth of Market. Provide Depth of Market upto 5 levels, and you can also choose your own liquidity source (Subject to review by the liquidity provider)
- No Order Requotes & Rejections. No order requotes & rejections, so that your trading strategy can be fully implemented.
- No dealing desk Intervention. Dealing desk cannot intervene in ECN mode, and you will experience real market liquidity feedback.
- Support for Hedging. Your can fully test your trading strategy by the market, and the market will determine whether your strategy works.
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