What's Difference Between ECN and Standard Commodity Trading Account in Commodities?
ECN Commodities Trading Account vs Standard Commodity Trading Account
ECN Commodities Trading Account includes Paying of Commissions on top of commodity spreads while Standard commodity accounts only include paying of spreads without paying commissions.
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.
Standard Commodity Trading Accounts
Standard Commodity Account - the Standard Commodity Trading Account commodity brokers will send client orders direct to their Commodities Liquidity Provider, the Commodities Liquidity Provider is a large bank with deep liquidity to trade on the interbank net-work.
A Standard Commodity Trading Account provided by a broker can either have one Commodities Liquidity Provider or many liquidity providers.
The best thing about Standard commodity Accounts is that commodities traders can place their commodities trades immediately with instant market execution because they have access to the inter-bank market via their STP commodity broker execution.
Standard Commodity Trading Accounts will not charge commissions, but will charge spread on commodities trades. Because Commodities traders have access to inter bank market execution, there is no re-quotes on the commodity trading orders neither any order waiting for execution, order execution is instant.
