ECN (electronic communication network) describes an execution arrangement where client orders are routed to a pool of liquidity providers and matched against other participants rather than filled internally by the broker. Accounts of this type usually quote a raw spread and add a commission per lot. True ECN behaviour is a matter of the order routing actually used, so the practical test is the execution you receive, not the marketing label.
Forex glossary
ECN Broker
Related term
Market Maker
A market maker is a broker that quotes both sides of the market and takes the other side of client trades internally, then manages the resulting exposure itself…
Spotted an error or a missing nuance?
Definitions are written by us and corrected when we are told we are wrong. If your broker quotes differently — especially on gold — say so and we will record the assumption.