Trade Gold Trading

ECN, STP, NDD, DD & Market Maker

ECN, STP, NDD, DD, Market Makers

The listing below shows the different categories of brokers classified depending on their execution technique.

ECN

The ECN Account is interchangeable with Electronic Communication Network: brokers utilizing ECN Accounts are directly linked to the interbank network via this electronic system, and orders originating from the ECN Account are channeled straight into this electronic network. An ECN Account will display diverse orders sourced from various banks. Gold quotes provided by these ECN networks of banks originate directly from them to the interbank network, and orders are fulfilled immediately within the interbank markets the moment a trader using this ECN account transmits a trade order through their online broker.

ECNs account will charge commissions + spreads for every trade transaction. For the ECN Account execution method/technique every order is matched to another in real-time over the interbank network - ECN Network.

STP

STP account means the same as STP. Brokers with STP accounts route client orders right to their gold liquidity provider. That provider is a major bank with plenty of liquidity for interbank trades.

An STP Trading Account provided by an STP broker can either have one Gold Liquidity Provider or several liquidity providers.

The primary advantage of STP Accounts lies in traders' ability to execute their trade transactions instantly, benefiting from immediate execution due to their direct access to inter-bank markets via their associated STP online brokerage.

STP Accounts will not charge commissions, but will charge spreads on xauusd trades. Because traders have access to the interbank market execution, there is no requotes on the orders neither any order waiting for execution, order execution is instant.

The Core Differences Between STP and ECN Execution Methods

NDD

NDD means Non-Dealing Desk for gold order execution. These brokers skip the dealing desk, leading to fewer limits than Dealing Desk setups.

NDD Execution means that trades from the Gold traders account will be executed direct to the online interbank exchange market. Orders will be matched with other orders in the online market using the broker NDD trade order execution model.

DD

DD stands for dealing desk. These brokers match and run orders in the XAUUSD market.

The trader trading with DD account will get many requotes.

Dealing Desks will issue traders with a lot of order requotes, meaning prices of orders are not realtime & the broker can re-quote a trader's order if the price of the market changes quick enough before broker's dealing-desk places the order online or before they match the Gold order in online xauusd market.

"Dealing Desk" accounts imply that order processing is not instantaneous: consequently, this execution model means that orders fulfilled via a DD Account may experience slower execution times when contrasted and compared against those processed through an ECN or STP account.

Market Makers

MM accounts come from brokers with in-house desks. They match orders without hitting the live XAUUSD market.

Brokers can open gold trades against their clients. This means the online broker takes the opposite side of a trader's open positions. The broker chooses to place an order against the market trend of the trader's position. If the gold trader loses money, the broker profits. If the trader profits, the broker loses.

Regulated Online Brokers

Regulated Gold Brokers are those that are subject to the supervision of a financial regulatory body: these businesses will abide by a stringent code of ethics in order to maintain their license. Traders trust these legitimate companies since their regulators audit them yearly and they do not engage in dishonest activities against their clients.

The optimal choice for trading is Regulated + STP Execution.

Gold broker types include ECN, STP, NDD, DD, and market makers. They provide XAUUSD liquidity.

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