What's the Difference Between ECN and DD CFD Account in CFD?

ECN Account CFD vs DD Account CFD

ECN CFD Accounts

ECN CFD Account stands for Electronic Communication Net-work, these ECN CFD Account cfd brokers are connected to the inter bank network directly through an electronic communication network & the cfd orders from the ECN CFD Account are placed straight to the electronic network.

The ECN CFD Account will display different orders from different banks. Cfd quote placed by these ECNs net-work of banks are direct from them to the inter bank network & orders are executed directly to the interbank market once a trader trading with this ECN account places an order with their cfds trading broker.

These ECNs trading account will charge commissions + spreads for every cfd trade. For these ECN CFD Account execution method every trade is matched to another in real time over the interbank network - ECN Network.

DD CFD Accounts

DD stands for dealing desk, these DD account cfd brokers have a dealing desk model where they can match orders and execute cfd order in the online interbank cfds trading market.

The cfd trader trading with a DD account will get a lot of re-quotes.

Dealing Desks will issue cfd traders with a lot of order re quotes, meaning cfd prices of orders are not real-time & the broker can requote a cfd trader's order if the cfds price of the cfd market changes quickly enough before broker's dealing desk places the trading order online or before they match the order in the online interbank cfds trading market.

Dealing Desk accounts therefore means that order execution of cfd orders is not instant and therefore this execution model might mean that orders executed using a DD CFD Account aren't executed as quickly as when compared to an ECN trading account or an STP account.