• What is Yadix’s execution model? Is it NDD, STP or ECN?
• What is an STP account?
• 3 advantages of ECN accounts
  1. Orders won’t get rejected
  2. Fast execution speed
  3. Availability of Market Depth Window
• 3 disadvantages of ECN trading
  1. Maximum leverage may be low
  2. Transaction fee will be charged
  3. High required deposit amount and transaction currency quantity
• 3 advantages of STP accounts
  1. You can trade with high leverage
  2. No transaction fees
  3. The deposit amount and transaction currency quantity are low
• 2 disadvantages of STP accounts
  1. You can’t see the Market Depthinformation
  2. Spread is wider than ECN trading
• How to choose the best ECN Forex account?
  1. Low transactions fees and tight spread
  2. Availability of Market Depth Window
  3. Leverage, minimum deposit, and minimum trading volume
  4. Check the license and regulation

What is Yadix’s execution model? Is it NDD, STP or ECN?

Yadix strives to offer STP and ECN execution on MT4 trading platform.

The broker is especially focused on providing better execution experience for traders, prior to other promotions.

Here are 5 merits that Yadix offer for online traders.

1. No Re-quotes and no Conflict of Interest
   • With market execution (no dealing desk), all orders are submitted to liquidity banks and no re-quotes are guaranteed, allowing client’s to trade at their requested prices.
2. Fast Order Execution
   • Exceptional execution speeds are achieved through technology and leading liquidity. MT4 servers are hosted in Equinix LD4, and as execution banks are co-located at Equinix and cross-connected to the FX bridge, latency is reduced and faster order execution is experienced by traders.
3. Anonymous Trading
   • Trading with Yadix STP/ ECN ensures all new, stops loss, take profit and pending orders remain anonymous. Anonymity protects your profitable trading strategy against manipulation whether you trade using scalping systems, hedge or use automated trading tools. Yadix also provides free London VPS for traders.
4. Global Data Centers
   • 10 data centers are strategically in place around the world to allow all traders, regardless of their location to trade through fiber-optic connections to the MT4 server for superior filling quality, low latency and fast execution.
5. STP/ECN Execution Using MT4 Platform
   • Orders executed via the MT4 platform straight through to our liquidity providers at the lowest possible price. MT4 provides the ideal environment to operate automated trading systems and all aggressive Forex strategies.

Yadix, is also known as the Best FX Broker for Scalping and High-Frequency Trading (HFT).

Go to Yadix Official Website

What is an STP account?

An STP account is an electronic process that does not involve human intervention, from the FX ordering process to the completion of trading and settlement.

In FX, the trader’s order-to-settlement process is automated, and FX dealers do not participate in trading.

Instead, in the STP account, the Forex trader offers the rate to the trader by adding the spread to the cheapest one of the prices offered by the liquidity provider.

The following traders are recommended for STP accounts/transactions.

• Beginners or those with little trading experience;
• Those who trade with a small margin;
• Those who trade around 1,000 or 10,000 currencies every time;
• Those who want to trade with higher leverage.

Mainly beginners will have no problem with STP.

There are many middle-to-advanced people who continue to trade with STP.

Trade with Yadix’s STP account

3 advantages of ECN accounts

There are 3 main advantages to ECN accounts.

1. Orders won’t get rejected;
2. Order Execution speed is quite fast;
3. You can check the market liquidity from the “Market Depth” board.

1. Orders won’t get rejected

Since ECN is an electronic exchange transaction, orders from sellers and buyers are electronically settled, so there will be no rejection of executions.

These sellers and buyers can trade not only at the price offered by the liquidity provider but also at the price offered by the trader, so they are also trading between traders.

Since all prices are traded, there is virtually no order rejections.

2. Fast execution speed

For STP accounts, Forex firms match the best prices in the Liquidity Provider (LP), interbank market.

For ECN accounts, traders are the servers of Forex brokers and participate in buying and selling with many other traders and liquidity providers (LPs).

Compared to STP, ECN has faster order speed than STP because traders and liquidity providers (LPs) buy and sell at the same location.

3. Availability of Market Depth Window

In the ECN account, you can check the “board information” (depending on the FX broker).

Since you can check the order quantity involved in each rate, you can forecast trends such as if there are many sell orders, it will go down, and if there are many buy orders, it will reverse.

Being able to check the order quantity at a glance is a great advantage.

In addition, you can always check the price, so even if you place a large number of orders, you can prevent slippage beforehand.

Go to Yadix Official Website

3 disadvantages of ECN trading

There are 3 main disadvantages of ECN accounts.

1. Maximum leverage may be low, depending on the broker;
2. Transaction fee will be charged;
3. The minimum deposit amount and the minimum transaction currency quantity may be set higher.

1. Maximum leverage may be low

ECN accounts may have a lower maximum leverage set than STP accounts.

The reason why the maximum leverage is low is to prevent traders from losing funds immediately.

In particular, forex brokers make profits from spreads and commissions, so this is done because brokers want traders to continue trading.

2. Transaction fee will be charged

There is basically a transaction fee only for ECN accounts.

However, adding the ECN spread and transaction fees is normally cheaper than just the STP account spread.

3. High required deposit amount and transaction currency quantity

ECN accounts often have higher required deposit amounts and transaction currency amounts than STP accounts.

There should be no particular problem here because many professional and advanced traders want to trade with an ECN account.

Go to Yadix Official Website

3 advantages of STP accounts

There are 3 main advantages to STP accounts.

1. Leverage is higher than ECN accounts (depending on the FX company);
2. Transaction fees are often free;
3. The minimum deposit amount and minimum transaction currency are low.

1. You can trade with high leverage

It is the strength of STP that can be traded with high leverage.

However, it is often that ECN accounts are offered with 1:500 or higher leverage.

In the case of Yadix, you can trade with up to 1:500 high leverage.

2. No transaction fees

Transaction fees are basically free with STP accounts.

However, the spread (price difference between buying and selling) is wider, and the ECN account is normally cheaper for the total fee.

3. The deposit amount and transaction currency quantity are low

Compared to ECN, STP has a lower deposit amount and transaction volume requirement.

The point of the STP account is that the deposit amount is low and even beginners can easily enter.

Most ECN accounts have a higher deposit amount and transaction volume than the basic STP account, so consider your own financially when opening an account.

Visit Yadix Official Website

2 disadvantages of STP accounts

There are 2 main disadvantages of STP accounts.

1. You can’t see the Market Depth information;
2. Spreads are wider than ECN trading.

1. You can’t see the Market Depth information

First of all, STP can not see the board information (indicative price), but it is OK for those who do not care even if there is no particular.

People who are looking at board information in domestic FX etc. may have a little difficulty getting used to it.
Those people recommend an ECN account.

2. Spread is wider than ECN trading

STP is often free of charge, so the spread is wider.

In addition, the spread alone will normally be higher than the total “commission + spread” of the ECN account.

However, if you are going to trade by day trade or swing trade, it is common to use an STP account.

If you are a beginner, you can use the STP account without hesitation.

Go to Yadix Official Website

How to choose the best ECN Forex account?

When selecting an ECN account of a forex broker, the points of evaluation are mainly the following.

1. Lower trade costs including transaction fees;
2. Whether you can see the Market Depth information;
3. ECN account’s trading conditions (maximum leverage, minimum deposit amount, minimum transaction amount);
4. Safety/reliability. (financial license, trust maintenance, etc.)

1. Low transactions fees and tight spread

With ECN, it is always necessary to check the total cost including the transaction fee, not just the displayed spread.

First, make sure that the average spread is well presented.

Not only it could be the smallest spread, but you can also see the credibility of the broker by checking if there is something wrong with the average spread.

You should calculate the total cost by adding the transaction fee to the average spread.

If the total costs are the same as other accounts, try to choose the one with a stronger commitment (faster order execution and the condition of payment processing).

2. Availability of Market Depth Window

MT4 is the mainstream in FX, but since MT4 is a platform originally developed for STP brokers, it also supports ECN accounts, but you can not see the Market Depth information on MT4.

Even if you can not see the Market Depth information, there is no problem in trading, but the Market Depth information often becomes useful because you can see the available price range in real-time.

3. Leverage, minimum deposit, and minimum trading volume

The ECN account generally has high hurdles for terms of use, and is suitable for advanced and professional traders.

The main features of ECN accounts are the following.

1. Excellent execution speed even for large orders;
2. Multiple orders can be ordered simultaneously;
3. You can check the Market Depth information;

Forex’s advanced investors and large investors have higher trading skills than individual traders and have more funds available for trading, so the maximum leverage is normally set low for ECN accounts.

Also, ECN accounts tend to have higher minimum transaction volumes and higher minimum deposits.

When a beginner or intermediate trader wants to choose an ECN account, he/she should choose an ECN account with the highest possible leverage and the lowest minimum deposit, and the lowest trading volume.

4. Check the license and regulation

This applies not only to ECN accounts but to all FX brokers.

If you are thinking of using an ECN account, make sure you have a proper license, also check the fund management system such as trust maintenance and segregation management.