What is an Electronic Communication Network (ECN)?

An ECN is an alternative platform to an index for making trades. An Electronic Communication Network is a type of alternative trading system that allows for trading listed stocks and other exchange-traded products.

Trading on an ECN is typically limited to institutions and broker-dealers, and trades are facilitated when the price on a buy order intersects with a price on a sell order. ECN’s must register with the SEC, and you must be a subscriber to trade on one.

What are “Dark Pools” of Money?
What is an Alternative Trading System (ATS)?
Who is an Account Manager?