Short answer
Engagement party etiquette is simple: invite only people you would also invite to the wedding, be clear about the dress code and timings, and thank your guests for coming. You do not need to give gifts, and guests should not feel pressured to bring one.
The main rule for an engagement party is to keep the guest list focused on the people you genuinely want at your wedding. It is not a chance to invite everyone you know. If you invite someone to the engagement party, they should usually also be invited to the wedding, unless the wedding is very small or for family only. That avoids hurt feelings later.
When you send invitations, include the date, time, location, and a simple dress code if you have one. You can also mention whether gifts are not expected. Many couples prefer no gifts at an engagement party, and that is perfectly fine. If guests do bring a small gift, thank them warmly.
As hosts, you should greet everyone, introduce people who do not know each other, and make sure no one is left standing alone. Thank your guests as they leave, and consider sending a short thank-you message afterwards. If someone else hosted for you, thank them publicly and privately.
There is no need for speeches or formal toasts, but a short welcome from you is always appreciated. Keep it light, and let the celebration flow naturally.
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