Differences between ECN & Standard Accounts

Before understanding the differences between ECN accounts and standard accounts, we first need to have a clear idea of what the ECN account and the standard account are. This will help us better understand the differences between these two types of accounts.

Most traders are already familiar with standard accounts, especially beginners, as they typically choose a standard account when getting started. As the name suggests, a standard account is a general account that suits the majority of traders — its a fairly common type of account.

On the other hand, an ECN account sounds more advanced, giving the impression that it's the kind of account experienced traders would choose, right? Exactly! That‘s true. An ECN account isn’t particularly beginner-friendly and requires some trading experience, but its not completely out of reach either.

Next, we‘ll take a deep dive into both ECN and standard accounts. Finally, we’ll also recommend some well-known brokers that offer both ECN and standard accounts, allowing you to make a choice based on your personal needs.

ECN Account

What is an ECN Account?

An ECN (Electronic Communication Network) Account is a type of trading account that connects traders directly to a global network of liquidity providers (e.g., banks, financial institutions, and other traders) through an electronic system. Unlike traditional accounts where brokers act as intermediaries, ECN accounts facilitate direct market access (DMA), offering unparalleled transparency and execution speed.

Key Features of ECN Accounts

• Raw Spreads: Spreads start as low as 0.0 pips (e.g., EUR/USD), but traders pay a commission per trade (e.g., 3−6 per lot). No broker markup on spreads, ensuring pricing transparency.
• No Dealing Desk (NDD) Execution: Orders are matched directly with liquidity providers, eliminating conflicts of interest.
• Depth of Market (DOM): Displays real-time buy/sell orders from multiple liquidity providers, allowing traders to gauge market depth.
• High Minimum Deposit: Typically requires $500+ to open.

Pros & Cons of ECN Accounts

When to Choose ECN Accounts?

• You are an Experienced Trader: Benefit from direct market access and tighter spreads with a solid understanding of trading mechanics.
• You Trade Frequently or in Large Volumes: Lower spreads and transparent commissions reduce costs for active traders.
• You Value Transparency: ECN accounts provide real-time pricing and deeper liquidity, ensuring fair execution without broker interference.

Standard Account

What is a Standard Account?

A Standard Account is a common type of trading account offered by brokers, designed for retail traders who prioritize simplicity and accessibility. It typically features broker-adjusted spreads (no commissions) and supports small to moderate trading volumes.

Key Features of Standard Accounts

• Wider Spreads + No Commissions: Wider than ECN accounts, as spreads include the brokers markup (e.g., 1.0–2.0 pips for EUR/USD), but no commissions.
• STP (Straight-Through Processing) or Market Maker (MM) Execution: Orders routed directly to liquidity providers, and the broker acts as the counterparty, providing liquidity internally.
• Low Minimum Deposit: Low entry barriers, often 50–200 (some even 0), ideal for new traders.
• Low Lot Size: Trade micro (0.01) to standard lots (1.0).

Pros & Cons of Standard Accounts

When to Choose Standard Accounts?

• You are New to Trading: Learn platform mechanics without complex fee structures.
• You Trade Small Volumes: Micro lots (0.01) minimize spread impact.
• You Prefer Simplicity: Fixed spreads offer cost predictability.

ECN vs Standard Accounts: Key Differences

Example Trade Cost Comparison

ECN Account:

Trade 1.0 lot EUR/USD with 0.2 pips spread + 3 commission → 0.2 pips × 10 per pip + 3 commission → 5 total cost

Standard Account:

Trade 1.0 lot EUR/USD with 1.5 pips spread → 1.5 pips × 10 per pip → 15 total cost

Write at the End: ECN or Standard? Which is Better?

If you trade frequently, need ultra-low spreads, and can absorb commission costs, choose the ECN account; if you are getting started, trade small volumes, or prefer predictable costs, the Standard account is your best choice. It is advised to test both account types on a demo platform to compare execution speed and costs for your strategy!

Brokers with Both ECN and Standard Accounts

We have researched 100+ well-known regulated brokers in the industry. Most of them offer Standard accounts, while a few brokers offer both ECN and Standard accounts. According to the results of our research, the following is a list of brokers with both accounts. Find detailed features in the comparable table below:

Brokers with ECN & Standard Accounts
Broker	ECN & Standard Account Type	Minimum Deposit	Max Leverage	Spread from	Commission
	Raw ECN	$50	1:500	0.0 pips	From $3.00 per lot per side
	Pro ECN	$10,000			From $1.50 per lot per side
	Standard STP	$50		1.1 pips	❌
	ECN Standard	$0⭐	1:500	0.8 pips	❌
	ECN Prime	$2,000		0.1 pips	$6.00 per lot
	ECN institutional	$20,000		0.0 pips	$4.00 per lot
	ECN Zero	$100	1:1000	0 points	$3 per side on all FX asset classes
					Up to $5 round turn for precious metals
					0.1% round-turn on all crypto asset classes
	Standard+	$10		10 points	❌
	ECN	$100	1:1000	0.0 pips	$7 for currency pairs, 5 for precious metals
	Standard	$100		1.6 pips	❌
	ECN	$100	1:500	0.0 pips	$4 per lot
	Standard	$25	1:2000		❌
	Standard Bonus
	ECN	$3,000	1:500	Average 0.0 pips	$5/standard lot
	Standard	$0⭐	1:2000	Average 1.4 pips	❌

ECN & Standard Account Knowledge Questions and Answers

What does ECN stand for?

ECN stands for Electronic Communication Network. It is a technology that connects traders directly to the interbank market, providing access to real-time pricing and deeper liquidity pools.

Are ECN accounts better than Standard accounts?

It depends on your trading style and experience. ECN accounts are better for experienced traders who trade frequently or in large volumes due to lower spreads and transparent pricing. Standard accounts are more beginner-friendly and simpler, with predictable costs.

Can I switch from a Standard account to an ECN account later?

Yes, most brokers allow you to upgrade or switch account types if your trading needs change. However, it‘s important to ensure that you’re ready for the added complexity and requirements of an ECN account before making the switch.

Why do ECN accounts require higher minimum deposits?

ECN accounts are designed for more experienced traders and often involve higher trading volumes. The higher minimum deposit ensures that traders have sufficient capital to handle the potential risks and leverage associated with this account type.

What is slippage, and how does it affect ECN and Standard accounts?

Slippage occurs when the execution price of a trade differs from the expected price, often due to market volatility. ECN accounts are more prone to slippage because they operate in real-time market conditions, while Standard accounts may offer “no slippage” guarantees but with wider spreads.

Which account type is better for beginners?

Standard accounts are generally better for beginners because they offer simplicity, fixed spreads, and lower minimum deposit requirements. They provide a controlled environment for learning the basics of trading.

Can I use both ECN and Standard accounts simultaneously?

Yes, some brokers allow you to open multiple accounts under the same profile. This way, you can use a Standard account for smaller or less frequent trades and an ECN account for larger or more active trading strategies.