What is the Difference Between ECN and MM Account in CFD?

ECN Account CFD vs Maker Account CFD

ECN CFD Accounts

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

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

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

MM Accounts

Market Maker CFD Accounts are cfd broker accounts where Market Maker cfd brokers have a dealing desk model where they can match the orders in house without going to the interbank cfds market.

CFD orders can also be executed against their traders - meaning the broker can take the opposite side of a cfd traders open trades.

This cfd broker can make the decision to either execute a cfd order that is the opposite of a cfd trader's order thus if the trader makes a loss the broker makes a profit, & if cfd trader makes a profit the broker makes a loss.