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

ECN CFD Account vs STP CFD Account

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.

STP CFD Accounts

STP CFD Account stands for STP, the STP CFD Account cfd brokers will send client orders direct to their CFD Liquidity Provider, the CFD Liquidity Provider is a big bank with deep liquidity to trade on the interbank net-work.

An STP CFD Account provided by an STP cfd broker can either have one CFD Liquidity Provider or many liquidity providers.

The best thing about STP CFD Accounts is that cfds traders can place their cfds trades immediately with instant execution because they have got access to the inter bank market via their STP cfds trading broker.

STP CFD Accounts will not charge commissions, but will charge spread on cfds trades. Because CFD traders have access to the inter bank markets trading execution, there is no re-quotes on the cfd orders neither any order waiting for execution, the trading order execution is instant.