Isaiah T Nelson#90

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What is the role of electronic communication networks (ECNs) in forex?

ECNs connect traders directly to liquidity providers, bypassing broker dealing desks. They aggregate quotes, offering transparent pricing and low spreads. Institutions use ECNs for efficiency and anonymity. Retail traders access them through ECN/STP brokers. Benefits: reduced conflict of interest and tighter spreads. Risks: commissions and variable liquidity in off-peak hours. ECNs democratize access, giving retail traders a closer experience to institutional execution. They are the digital highways of modern forex.