FX ECNs, like Baxter-FX, provides access to an electronic trading network, supplied with streaming quotes from the top tier banks in the world. The matching engine performs limit check and matches orders in less than 100 milliseconds per trade.
The matching is quote driven and these are the prices that match against all orders. Spreads are discretionary but in general multibank competition creates 1-2 ticks on Majors and Euro Crosses.
The order book is not a routing system that sends orders to individual market makers. It is a live exchange type book working against the best bid/offer of all quotes.
By trading through an ECN, a currency trader generally benefits from greater price transparency, faster processing, increased liquidity and more availability in the marketplace.
The banks also reduce their costs as there is less manual..
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