Is Hugo’s Way a True ECN Broker?
and if not then who is the best ECN broker?
Hugo’s Way is a young financial trading platform that provides state-of-the-art trading services to clients worldwide. Founded in 2017, the company gained popularity in the shortest time possible. There have been quite a few remarkable things about the company, and one of them is that it is an accurate ECN account.
This relatively new broker uses the MT4 trading platform, offering top-notch ECN connectivity to customers. In today’s digital world, brokers must make the most of the available financial tools and provide sound financial services to customers.
Also, the world is now a global village, which means that people don’t have to be physically present in the country where brokers are registered – or where brokers’ physical offices are. And this is what makes the world of trading – especially forex trading remarkably good. Technological innovations in trading have led to great revolutions. Apart from allowing people from almost all over the country to participate in trading activities, fintech also provides real-time analysis of stocks. This facility is beneficial for investors who can easily make decisions based on what’s happening in the present.
One of the other good features of Hugo’s Way is the company’s 1:100 leverage, where it offers customers to trade up to $100 for every $1 that they have in their accounts. This mechanism allows customers to be more confident about their trading traits and take bets – whenever possible.
Many people argue that since Hugo’s Way is not regulated, it may not be preferable, but this assertion doesn’t hold any ground. We will tell you why: first, Hugo’s Way is “in the process” of applying for its license. Second, just because it is unregulated, it doesn’t mean that the company doesn’t have set guidelines.
Hugo’s Way is a reliable broker, gaining so much popularity among both new and experienced investors. It has easy-to-understand terms and conditions, and it allows investors to withdraw their funds with a lot of conveniences. It is virtually impossible to get a broker that offers you to place small trades in today’s day and age – such transactions are at a micro-level. It means that they can trade as low as one micro lot (0.01).
All of this has brought us back to where we started – Hugosway as an ECN broker. First, readers will want to know what the term “ECN” means and why it is the new buzzword in the trading world. In the later sections of this article, we will discuss all the technical details to help you understand what an ECN broker is.
More About ECNs
Like shares and other assets, forex trading doesn’t have to occur at an over-the-counter (OTC) market. And this is why investors need a reliable broker to get the most out of their trades. The forex trading market is not centralized, and brokers offer different trading conditions to investors.
And for newcomers, most brokers look precisely the same – we have been in the same boat. But there are a few key areas that you need to look into to assess your broker’s efficiency better. For example, when it comes to Hugo’s Way, you know that it provides the best trading platform because it uses the latest tech to up its game. Another good point is that it uses segregated accounts, which means that it keeps the clients’ money and the firm’s money separately. All of this makes a difference, allowing investors to trust the organization.
What is the Difference Between an ECN Broker and a Market Maker?
Let us now delve deep into the world of trading. If you are new to this market, you won’t have heard the term “market maker.” This term refers to those who “run the markets” – people responsible for the everyday operations and businesses of the market. These market makers use their systems to set the bid and the asking price. Then, these prices are displayed clearly on their platforms, letting investing have a better understanding of their trading positions. Unlike ECN brokers, market maker brokers don’t go against their client positions.
On the other hand, ECN brokers let market participants have direct access to one another. As a result, trades happen transparently. And since ECN brokers charge a commission, investors know that trade conditions are not against their interests.
Why Should You Trade with ECN Brokers?
All the discussion mentioned above and our insistence on why ECN brokers are the next big thing may have made you wonder: why you should trade with ECN brokers. This section is an answer to this question:
No Conflict of Interests
Market makers can trade against their clients – it is a common phenomenon. But this acceptable norm does create a conflict of interest – if brokers are competing against investors, how safe are these investors? On the other hand, ECN brokers don’t have this questionable trading policy against clients. Instead, such brokers are intermediaries between two parties and match investors with different market participants.
In simple words, if ECN brokers don’t bet against investors, they are not standing at the opposite side of the trading positions of investors. And this segregation is the reason there isn’t any conflict of interest. For ECN brokers, the deal is simple: they will get money – commission – whether you lose or win money.
Better Trading Conditions
One of the reasons for this unsaid fear of the trading world is that there is no transparency in certain transactions. Instead, influential brokers have the liberty to decide the price, making it extremely difficult for newcomers or other novice investors to understand the market mechanism.
Unlike market maker brokers, ECN brokers are not interested in setting the tone of markets – or making the markets. And since they don’t quote their prices, there is no room for price manipulation – one of the worst things of the forex trading world. Instead, ECN brokers rely on various liquidity providers for prices.
Another reason why ECN brokers cannot possibly manipulate prices because they allow investors to have current information. With real-time data, it is easier to gauge price history. And such sharp accuracy leaves no room for any type of price manipulation. They also display prices from official sources. This particular practice allows investors to trade timely.
Real-time quotes – often known as “real quotes” – have a lot of benefits. One of them is that you can easily avoid re-quotes that have the potential to impact your trading performance severely.
Should You Go With Hugo’s Way?
In trading, it is impossible to give answers in absolute terms. The foreign exchange market itself is pretty volatile. Political events around the globe change currency values in the blink of an eye. Investors think that foreign exchange trade is easier and more convenient than stocks trade. But it is not the case.
Just take the recent example, the war in Ukraine has resulted in the precipitous fall of the Russian rouble. Some years ago, strained relations between Turkey and the USA resulted in the collapse of the Turkish lira.
When you are in forex trading, you are actually trading with the help of these currency units. We discussed these examples to give you an idea of how risky the trading business is. However, good brokers can make this experience worthwhile.
Hugo’s Way is a reliable broker, which provides transparent services to its clients. And while brokers can never deny the underlying risks of the trading world – or bring it to the minimum, in this riskier world, Hugo’s Way has been trying hard – rather consistently – to ensure that investors have a good trading experience.
Frequently Asked Questions About Hugosway ECN Broker
Q: How does an ECN work?
Ans: In the trading world, the term “ECN” is relatively new. But it has so much importance. Now that the world has been digitized, brokers have turned digital too. ECNs are digital systems that show the available bids and then try to match them with market participants’ ask quotes.
Q: How do ECN brokers make money?
Ans: It all comes down to this: what is there for brokers to provide digital services to their clients. ECN brokers usually charge a small fee per transaction – it can be called commissions too. It is how they generate money for themselves.
The Final Word
So what have you understood about ECN brokers? Was the concept new for you? Many people – especially new investors – shy away from entering the world of trading mostly because they think that they will not be able to gauge the attached risks. No one wants to lose all their hard-earned money just because of one mistake.
It is also true that many people don’t understand financial concepts, as well as others do, and even when they have financial tools available, they are unable to utilize them properly. With Hugo’s Way, you can keep your worries aside.
ECN brokers let you trade more profitably. All transactions are transparent, and more lifetime data is available to let you know what is going on to trade efficiently.