Shocking discovery comparing ECN account with non-ecn account

Maybe you were like me not too long ago? Knowing there are some differences between a commission ECN broker account and a Non-ECN account whereby no commissions are charged expect for that taken out through the spread.

In recent times deposits for opening a true market ECN account have come right down so I decided to open one of these accounts and compare the difference with my non-ecn account held through a different broker.

I thought the differences would be minimal, but I was in for a SHOCK!

I ran the same EA / automated trading system on both real money accounts to see how they would compare. The results as follows;

Non-ECN account [FinFX]

February + 2.85%

March + 24.90%

Total 2 months = 27.75%

ECN account [ICMarkets]

February + 13.42%

March + 40.06%

Total 2 months = 53.48%

[NB: FinFX also offer ECN Accounts with $1,000.00 min deposit and brainyforex has no hesitation in recommending them].

The difference between the two accounts in the two month period = 25.73%!

Over 100 trades were made during this time period and the results showed that basically every trade made was considerably more profitable through the ECN account. There was also some difference in relation to the data feed which caused a difference in a limited number of trades taken on one account but not the other.

It should be noted that this comparison was done trading on the H1 time-frame.

These differences between a ECN and Non-ECN account should be of concern especially for those traders using automated trading systems which usually trade on the lower time frames. These differences will be a lot smaller for end-of-day traders whom hold onto positions for longer time periods and take fewer trades.

Commercial EA Forex Robot Buyers

Is it any wonder that some traders whom purchase automated trading systems make profits while others using the same system through a Non-ECN account lose money and call the EA forex robot a scam?

EA vendors selling automated trading systems need to go to greater lengths to to explain that their intra-day systems will significantly 'under-perform' on non-ecn accounts. Extremely short term scalping systems trading on minute charts (M1, M5, M15) will never ever perform successfully on non-ecn accounts!  

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Trade summary snap shots shown below; [Note that the above statistics cover only February and March, as the test was only started at the end of January]

FinFX Non-ECN AccountFinFX Non-ECN Account

ICMarkets ECN AccountIC Markets ECN Account

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