Get started with stock trading
How does stock trading online work?
Stock trading is available on our most popular account type. It just takes a few minutes to get started.
Stock trading is the buying and selling of a company's shares. The goal is to make a profit. When you buy shares in a company, you then own a small part of that company. The value of your part will change as the company's share price moves up and down. With our stock trading service, you can't open sell (short) positions on stocks, but you can sell any holdings you have to earn a potential profit.
Most traders use information including company news and announcements, company results (earnings), and technical analysis to choose which stocks to buy and when. Read more about CFD stock trading here.
Once you've bought your stock with StockExTrade, you can log in anytime to monitor it while keeping an eye on the latest news and announcements. There's no limit on how long you can hold your stock. Ready to sell? Login and click to sell instantly. You could then use that cash to place a new trade or return it to your bank account - whatever suits you.
What is ECN Trading?
ECN stands for ‘electronic communication network’ and refers to an automated component of trading that connects individual traders to liquidity providers including banks, brokerages and even other traders. This process provides access to the financial markets to individuals with any type of trading account and regardless of their balance size.
An ECN broker is usually a No Dealing Desk (NDD) broker, which means that the clients’ orders do not pass through a Dealing Desk, which enables execution in a direct connection between the parties.
An ECN is an automated system that publishes orders entered by market participants directly to third parties and individual traders. Those orders are then automatically executed by matching buy and sell orders at the best price available.
ECN trading provides you with tighter spreads and greater depth in market pricing. This is because the ECN broker consolidates quotes from several participants in order to offer you the tightest bid/ask spreads available. This highly automated trading process results in real-time market quotes and speedy execution!
ECN trading is an extremely efficient process using sophisticated technology. Linking all traders, large and small, directly with liquidity providers eliminates the need for a ‘middleman’ in your transactions.
Envision it as a marketplace for broker’s clients to trade with each other, so traders like you can get the best possible offer at that moment in time.
How does an ECN work?
Check out our simple graphic below to understand how this complex automated process works:
- Liquidity providers, such as global banks, enter either Buy or Sell orders into an ECN server. They then make those quotes available for their clients to trade with.
- On the other side, traders get access to different quotes for execution and are shown the best bid and ask prices available in the market. The traditional ‘middleman’ in the trading process is eliminated.
- An ECN broker helps clients enter the currency markets directly by matching ECN trades between market participants and then passing the orders to the liquidity providers.
What is an ECN Forex Broker?
A forex ECN broker uses the MT4 or MT5 trading platforms, and manages ECN trading as a ‘hub’, where all the major market players act as a liquidity source. The broker uses this network to provide its clients with direct access to other participants in the market.
By way of a reminder, the forex market is by some distance the largest traded global market- and the most accessible market in the world:
The daily volume traded in forex market stands at over $5 trillion, which is 50x larger than that traded by the New York Stock Exchange
Forex markets are open 24/5, from 5pm EST Sunday to 4pm EST Friday
Nearly 90% of forex trading is speculative trading
Over 85% of forex transactions take place solely in the majors