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

ECN Account is synonym for Electronic Communication Network, these ECN Account brokers are connected to the inter bank network directly through an electronic communication network & the orders from the ECN Account are placed straight to the electronic network. ECN Account will show various 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 opens a trade order with their broker,

ECNs trading account will charge commissions + spreads for every transaction. For the ECN Trading Account execution method every trade is matched to another in realtime over the inter-bank network - ECN Network.

STP

STP Account is synonym for STP, the STP 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 in the interbank net-work.

An STP Account provided by an STP broker can either have one Gold Liquidity Provider or a number of liquidity providers.

Best thing about STP Trading Accounts is that traders can open their trades immediately with instant execution because they have got access to the inter-bank markets via their STP online broker.

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

Difference between STP and ECN Execution

NDD

NDD stands for Non-Dealing Desk gold execution of orders, these NDD 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 trade transactions from the 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 order execution trade model.

DD

DD means for dealing-desk, these DD brokers have a dealing-desk where they can match orders and execute order in the online xauusd market.

The trader trading with DD account will get many requotes.

Dealing Desks will issue traders with a lot of order re-quotes, 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 trade order in online xauusd market.

Dealing Desk accounts hence mean that order execution of orders isn't instant & therefore this execution model may mean that orders executed using a DD Account aren't executed as quickly as when compared to an ECN trading account or an STP account.

Market Makers

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

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

Regulated Online Brokers

Regulated Gold Brokers are those that operate under a financial regulatory authority, these firms 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 don't carry out unshady 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 - Brokers Types - ECN, STP, NDD, DD, Market Makers - Gold Liquidity Provider - XAUUSD Liquidity Providers

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