So, what’s the Big Deal about ECNs?
If the answer is Yes and No, then what’s the big deal? Simply put: Transparency. Alternatively, perhaps more aptly put the promise of transparency. Some investors may initially be attracted by the spreads, but the real reason that so many traders like ECN is the chance to see how a real market operates. There’s no lying or cheating; what you see is what you get. For a lot of us, that’s all we really want: A fair trade.
Bear in mind, though, your old retail trader wasn’t necessarily out to cheat or lie to you. It’s just that their business model doesn’t actually inspire confidence. Add to that the frequent and numerous media reports of brokers who practiced all sorts of the illegal doings, and you’ve got a market full of traders and investors just begging for transparency.
Tha
