A lot has been said and believed about the concept of account ECN trading platforms. But what exactly is it? Is it merely another term for an FX trading platform? Or is there more to it? If you are considering signing up for one, you might as well know what it stands for and how it can help you make more money trading on the foreign exchange market. Here’s a quick explanation:
In its simplest form, an account ECN is just an automated trading platform, one that allows a broker to provide information to its clients about their account status. The information typically includes balance, open balances, active balances, and order history. All of this data is transmitted back to the trader or broker via a private messaging system. This allows brokers and traders to determine whether to keep a particular account open, to place a stop loss or take profit, and to specify the terms of such actions. Such information also allows them to easily adjust the rate of return and make adjustments on the trading floor. Thus, a trader or broker can inform their account holder that they have pulled the feature for a new transaction at a certain rate, without having to manually check the rates of other traders.
Now, is there more to it than that? Certainly not. Even so, an account ECN can be useful for other purposes, such as improving intra-day trading performance by giving the account holder better control over their funds. Better control often results in higher profits.
There are many benefits to trading platforms that offer an account ECN. The most important of these is that they let your broker provide information directly to you, without needing to funnel it through a third party. In fact, many brokers will actually create a separate “ecn” domain for each account. This streamlines the process of communicating with your account, greatly reducing the time spent on various phone calls, emails, faxes, etc…
By providing your account holders with direct access to your trading platform, you can take advantage of some of the latest trends and technologies. For example, consider the growing trend of “forex trading bots”. These are programs designed to automatically make trades for you on your behalf, based on algorithms that were formulated by computer scientists and algorithm developers. Once your account holder makes a trade based on one of these bots, you can be assured that the move will reflect favorably on your bottom line. But this is not the only advantage to offering ECN account access.
If you are building a trading platform and would like to make the most profit possible, then using a customised trading platform is the way to go. One of the great things about an account ECN is that you are in charge of all of the transactions that take place on your account. Therefore, you can make sure that all of your customers receive the best treatment. This can be accomplished by having their account details sent directly to your own personal trading platform. Instead of spending time waiting for a customer to respond, you can use the time you have on your hands to make trades for them. That is, if your customer’s order went through.
Achieving all of this while taking care of the costs of running and maintaining a traditional stock market system is important for all businesses. To this end, it is important that you find a way to separate your trader’s fees from your business expenses. By setting up an account ECN, you will be able to do just that.
When setting up an account ECN, one of the first things that you need to do is secure the login information for your customers. This will prevent hackers from accessing your personal information. Next, you will need to set up a merchant account. This is simply a bank or online payment processing centre where you can receive payments from your account holders. Finally, you should give your customers access to their own trading platforms. If you set everything up correctly, customers can automatically enter their orders from their trading platforms, and you will never have to be there to validate or confirm orders.