Broker to Trading

FXOpen is an FCA regulated MT4 and MT5 broker which provides ECN trading across a range of markets. It has a no dealing desk model, and does not reject or requote orders. It allows trading such as scalping, automated and high frequency and news trading.

ECN trading

FXOpen UK has two account types, ECN and STP. STP does not charge commissions, ECN does. FXOpen allows traders to access the Interbank market, by aggregating Interbank prices. It sends orders to this market. This market is composed of direct participants such as banks and institutions and indirect participants, such as clients trading through their broker into this market. In a dealing desk model, the trader trades with the broker, and the broker becomes the counterparty to their trades (and may hedge this trade in the Interbank market).

There are both positives and negatives to this (or any) model. For example, ECN trading is typically composed of market execution orders, which can thus have slippage, that is the order may be filled at a different price. A dealing desk broker may (but not necessarily will) be able to provide no or reduced slippage, as they are filling the order. However when the order is sent to the Interbank market, the broker does not determine the filled price, and slippage can happen.

One way ECN brokers try to deal with this, is to provide very fast order processing, to reduce the latency or delay between the client placing the order and it being filled. This can be facilitated by co-locating the broker's trading servers physically near finance hubs, where the Interbank liquidity providers operate electronically. For this purpose, FXOpen uses Equinix's NY4 Data Centre (located in New York).

But a dealing desk broker may reject an order or may requote it (instead of providing slippage). Whether this is an issue for a client, may depend on what style of trading they use. The broker may restrict the style of trading used by the client. But this is normally for styles such as scalping and high frequency trading (which may not be suitable for a dealing desk model or many traders). However FXOpen simply sends orders, it does not intervene in the order process, thus all styles are in effect allowed. Its high speed order processing, makes some styles feasible. But if the client wants to trade without a commission charge, they can use the STP account.

What is the minimum deposit ?

The minimum deposit is $300, £300 or €300. FXOpen.

What are the Commission charges ?

Commissions are charged on the ECN account, not the STP account. The Forex commission charge varies according to account equity and traded volume, from $1.5 per lot per side to $5 per lot per side.

What trading platform is available ?

FXOpen provides MT4 an MT5. These platforms are how the client trades on the Interbank market through FXOpen. When the trader first opens MT4 or MT5 on FXOpen, they will find an interface with a group of charts. These charts can be customised with time frames from 1 minute to monthly, candlestick, bar or line charts, and a range of technical indicators, and other tools.

By clicking on View and then Symbols a full list of markets available can be found. By right clicking on the symbol list and choosing spread, the spread for each market can be found. As can be seen, this can change, indicating a variable spread. This platform is available on desktop for download, as a web trader, and as apps for tablet and mobile trading.

What markets are available ?

The range of markets offered depends on the account. The widest range of markets are on the MT5 ECN account, with 600+, covering Forex, Indices, Energy, Metals and Shares.

What is the maximum leverage ?

Maximum leverage at FXOpen (FCA regulated) is for Forex. For other products leverage can be lower.

How may a trader fund their account ?

The client can fund their account by Credit/Debit cards, Trustly, Bank Wire Transfer and WebMoney. FXOpen does not charge a fee to deposit or withdraw using debit and credit cards or for GBP bank wire withdrawals.

What account currencies are available ?

The client can open an account in GBP, USD or EUR.

What is the minimum trade size ?

The minimum trade size is 0.01 lots.

Summary

For a minimum deposit of £300, FXOpen gives the client access to ECN (on MT4 and MT5) and STP (on MT4) trading, on different accounts. The number of Forex pairs provided (45+) is about average. The range of markets is very competitive with other ECN brokers (but less than some spread betting and CFD dealing desk brokers in the UK). As an ECN broker it gives traders the opportunity to trade markets relatively free from restrictions on trading styles, with high speed order processing.