What is the Difference Between STP and DD CFD Account in CFD?

STP Account CFD vs DD Account CFD

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 large 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 access to the inter bank markets via their STP cfds broker.

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

DD CFD Accounts

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

The cfd trader trading with a DD account will get a lot of requotes.

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

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