We get alot of requests from new Metatrader brokers or existing Metatrader brokers looking to convert their Metatrader into an ECN Metatrader. First, let's understand what an ECN is.

An ECN means Electronic Communication Network. In FX trading, this means a Network of liquidity providers such as banks which transmit electronically their bids and offers into a platform, such as Integral or Currenex, which is able to aggregate and show the best bid or offers from this network of liquidity providers. These ECN platforms, such as Integral and Currenex (Most popular), are the reason why we have tight trading spreads today in FX for retail FX traders.

Now let's discuss Metatrader. It is not designed to be an ECN platform nor can it be an ECN platform. Metatrader is designed for a single liquidity provider to input their prices to their clients and confirm manually each customer trade request.

Today, there is technology to automate the confirmation process in Metatrader so brokers do not have to manually confirm customer trade requests. This technology has revolutionized the way Metatrader brokers do business today and has allowed traders to make faster trading decisions during all market conditions. This is what we call a Bridge Software. A bridge software connects the Metatrader platform to an ECN platform, which allows quotes and trades to pass between eachother automatically without any dealer confirming manually.

Hence, the name ECN Metatrader.

Hi,

I would like to know more details about ECN Integral or Currenex, what kind of licenses do they have?
I heard only about ECN who are under NASDAQ like BATS or ARCA
Where they are situated and regulated?

ECNs for FX trading is not like traditional ECNs in stocks. FX ECN software such as Currenex or Integral allows market makers such as banks to input their pricing into their software which allows traders to trade directly with competing banks whoever is the best bid or offer and it also shows the depth of where the bids and offers are from competing banks which is similiar to a level 2 equities trading platform. The links for these two companies are www.currenex.com and www.integral.com You can read more about these platforms on their websites.