Traders have direct access to a variety of prices from a variety of market participants through their trading platforms. This means they’ll see the best bid and ask rates in the industry, giving ECN account holders a better understanding of market-pricing. This automated process then uses the network to allow buyers and sellers to find a counterparty instantly.
Orders are immediately matched and executed, so traders can rest assured that the broker they are using will never trade against them.
For their customers, an ECN Forex Broker should not use a dealing desk. They never give their order flow to market makers and just match traders.
There is no benefit gained on the spread difference on each transaction. Instead, the ECN broker charges a small fee to traders.
Non-dealing desk brokers, or ECN brokers, do not transfer order flow to market makers. Instead, they electronically match exchange participants and pass orders to liquidity providers.
An ECN broker manages trades around the ECN for interested traders. Because of how the ECN works, working with brokers of this kind also results in lower fees and more trading time availability.