Best STP/ECN Foreign Exchange ProviderEUROPEANCEO AWARDS 2013

ECN Business Model

 

For an exact understanding of the principles of ECN broker working, let us remind ourselves how the market value of any financial asset is formulated on FOREX - the dynamic of value is subordinate to the law of supply and demand. An increase in price always follows increased demand and vice versa. On FOREX (as in any other market) some participants wish to buy, others want to sell.

Suppose for example that one trader has decided to buy 10,000 EUR at a rate of 1.2500 USD for 1 EUR, and another at the same time wanted to sell the same amount of EUR at the same price. Executing the bids of these traders, the ECN broker transmits their orders into the system, where they are then executed (overlapping each other).

ECN brings together several major FOREX participants, significantly widening the flow of liquidity on financial assets. Accordingly traders receive access to the interbank market. The mechanism for ensuring this access will be looked at in more detail later.

Having implemented the technology for transmitting its clients' bids (for their subsequent execution) into the trading systems of the major market participants, BFSforex has gained the opportunity to invite traders to exploit all the advantages of ECN in their work.

It can be said that ECN is an interbank market in which the execution of bids not only precludes a conflict of interest between brokers and traders but also, in the absence of a monopoly on pricing, allows the execution of clients' bids at best prices. A regular ECN broker receives income on his commission account which clients pay for each transaction, and does not take any part in the formation of the pricing on a specific trading instrument. Current prices are primarily determined by the bids of participants in the system.

BFSforex is a financial institute offering a gateway to interbank liquidity allowing to provide our clients with top class trading facilities.

We use our MT4 bridge to connect your trading terminal directly to the interbank market.

We are looking for loyal clients who will be with our company for a long period of time. We realize that only full transparency of business and unrestricted trading opportunities can lead to success.

Customer Agreement Terms of Business Trading and Execution Risks Leverage Privacy Policy Risk Disclosure Statement
Awards

BFSforex is a global financial services company, depending on its professional technology, automation features and low-threshold,to participate in the international foreign

exchange transactions,not only won the admiration of customers, but also won the praises by various circles of society , which is a shining star in the FX market.

* Note:rading on the Forex market involves significant risks, including complete possible loss of funds. Trading is not suitable for all investors and traders. By increasing leverage risk increases (Notice of Risk). The service is not available for US residents

BFSforex provides you with educational resources to help you become familiar with all the trading features and tools in the trading platform. With the BFSforex practice account you can test any trading strategies you wish in a risk-free environment. Please bear in mind that the results of the transactions of the practice account are virtual, and do not reflect to any real profit or loss or real trading environment, whereas market conditions may affect both the quotation and execution. Forex products are leveraged products and trading forex therefore involves a high level of risk that may not be suitable for everyone. BFSforex recommends that you ensure that you fully understand the risks involved before making any decision concerning BFSforex's products. Independent advice should be sought if necessary.

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