What's Difference Between ECN and MM Account in Commodities?

ECN Commodities Account vs Maker Account

ECN Commodities Trading Accounts

ECN Commodities Account stands for Electronic Communication Net-work, these ECN Commodities Trading Account commodity brokers are connected to the inter-bank network directly through an electronic communication network and the commodity orders from the ECN Commodities Trading Account are placed straight to the electronic net-work.

The ECN Commodities Account will display different orders from different banks. The commodity 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 commodity broker.

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

MM Accounts

Market Maker Commodities Trading Accounts are commodity broker accounts where Market Maker commodity brokers have a dealing desk where they can match orders in-house without going to the online inter bank commodities market.

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

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