ECN, STP, NDD, DD and Market Maker

ECN, STP, NDD, DD, Market Makers

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

ECN

ECN Gold Trading Account stands for Electronic Communication Net-work, these ECN Gold Trading Account brokers are connected to the inter bank network directly through an electronic communication network & the gold orders from the ECN Gold Trading Account are placed straight to the electronic network. ECN Gold Trading Account will display different orders from different banks. Gold 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 markets once a trader trading with this ECN account places an order with their gold broker,

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

STP

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

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

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

STP Gold Trading Accounts will not charge commissions, but will charge spread on xauusd trades. Because traders have access to the inter bank market execution, there is no requotes on the gold orders neither any order waiting for execution, order execution is instant.

Difference between STP and ECN Execution

NDD

NDD stand for Non-Dealing Desk gold trading execution of orders, these NDD Gold Account brokers don't implement a dealing-desk this makes this type of order execution to have less trading restrictions as opposed to the Dealing Desk Execution.

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

DD

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

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

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

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

Market Makers

Market Maker are gold broker accounts where Market Maker gold brokers have a dealing desk where they can match orders in house without going to the online xauusd market.

Gold orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades. This xauusd trading broker can make the decision to either execute a gold order that is the opposite of a gold trader's order thus if the trader makes a loss the broker makes a profit, & if gold trader makes a profit the broker makes a loss.

Regulated XAUUSD Trading Brokers

Regulated Gold Brokers are those that operate under a financial regulatory authority, these companies will adhere to a strict code of ethics lest they lose their operating license, these are the genuine companies that are trusted by traders as they do not carry out unshady trading practices against their clients because they are audited by their regulators annually

Regulated + STP Execution is the best choice to trade with.

Gold Brokers Type - Gold Brokers Types - ECN, STP, NDD, DD, Market Makers - Gold Liquidity Provider - XAUUSD Liquidity Providers