ECN (Electronic Communication Network) offers are the first to appear with online trading. They are characterised by a traditional set-up: the client pays the broker a commission when opening a trade but does not pay the Spread on the trade.
Unlike bank commissions, however, FP Markets’ commissions are not standardised at all but are calculated on a volume basis. In this way all those who trade with small amounts of capital actually benefit. We will discuss this in more detail in the section on FP Markets’ fees.
STP (Straight Through Processing) offers, on the other hand, charge a Spread but no commission. The Spread, the difference between the bid and ask price, is calculated in pips, where 1 pip is the 5th useful digit of the price of an asset.
The greatest advantage of FP Markets is the platform offered. On the one hand we have MetaTrader – both version 4 and version 5 – which is the best trading platform we can use for online trading of CFD products and technical analysis using indicators and users on charts.
MetaTrader is a real legend for the world of independent investors, because it is a complete platform, perfect for technical analysis and it offers:
- EA Scripts: a scripting language that allows us to use programs and small programs to manage part of our investments in a semi-automatic way
- Technical analysis of the highest level: there are many indicators that we can apply with a simple click
MetaTrader remains one of the best systems in the world. There is no need to calculate the application of this or that indicator on your own.
FP Markets allows you to trade with variable spreads, which are known to be lower and cheaper than fixed spreads.
Last but not least, DMA (Direct Market Access) offers allow you to actually buy a security. Whereas ECN and STP refer to particular derivative instruments, CFDs, with DMA you can actually buy and own a security. This offer is particularly valuable if you intend to invest in shares.
The MetaTrader line of platforms is one of the most famous and widely used in the world. They are true gems of online investing, made by MetaQuotes Software Corp. and made available to various brokers.