Australia is home to many forex brokers, including a number of ECN (electronic communication network) forex brokers. These are brokers that typically offer very tight spreads between buy and sell prices on trading instruments, while in return charging a commission on each transaction.
Many high-volume professional traders believe the ECN model is superior to other brokerage models. One of the reasons for this is that as opposed to so-called dealing desk brokers, ECN brokers do not take the “other side” of trades made via its platform. Instead, they simply act as an intermediary by forwarding orders directly to a network of other brokers and banks, where orders are automatically matched. ECN brokers in Australia and elsewhere thus make their money from commissions, and not from spreads.