Trade Bitcoin Trading

Crypto Brokers Types

ECN, STP, NDD, DD, Market Makers

The list below covers broker types based on their order execution style.

ECN

ECN BTCUSD Account means Electronic Communication Network: these ECN BTCUSD Account brokers are linked to the interbank system directly through a network for electronic communication & orders from the ECN BTCUSD Account are sent directly to the electronic system. ECN BTCUSD Account will show various orders from different banks. The trading price given by these banks in the ECN network goes straight from them to the interbank network & orders are carried out right away in the interbank market once a trader using this ECN account makes an order with their broker.

ECN accounts will charge fees + spreads for each btcusd crypto trade you make. With this ECN Bitcoin Account way of doing things, each trade is matched with another one in real time through an inter-bank network, called the ECN Network.

STP

The STP BTCUSD Trade Account uses Straight Through Processing. STP brokers send their clients' orders straight to their Bitcoin Liquidity Provider - a big bank with deep liquidity that trades on the interbank network.

An STP BTCUSD account provided by an STP broker can have either one or multiple BTCUSD liquidity providers.

The greatest thing about STP BTCUSD Accounts is that those who trade can immediately put in their cryptocurrency trades with fast action because they can get to the inter bank market through their STP online broker.

STP BTC USD Crypto Accounts will not charge commissions, but will charge spreads on cryptocurrency trades. Because Bitcoin Currency traders have access to the interbank markets execution, there's no re-quotes on the orders neither any order waiting for execution, the BTCUSD trade order execution is instant.

Difference between STP & ECN Execution

NDD

NDD means bitcoin orders are done without a dealing desk: these NDD BTCUSD Account btcusd brokers don't use a dealing desk, which means this way of doing orders has fewer limits than using a Dealing Desk Order Execution Model.

NDD Order Execution means that the trade orders from the BTCUSD traders account will be sent straight to the interbank exchange btcusd market. The orders will be paired with other orders in the online cryptocurrency market using the broker's NDD order execution model.

DD

DD means dealing desk: these brokers use a dealing desk model where they can match orders and make btcusd crypto orders in the btcusd crypto market.

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

Dealing desks often give bitcoin traders many order requotes. This means bitcoin order prices lag behind real time. If the BTCUSD price shifts fast, the broker can adjust the order. This happens before the desk sends it to the online bitcoin market or matches it.

Dealing Desk trading accounts therefore means that the order execution of cryptocurrency orders is not instant & hence this execution model might mean that orders executed using a DD BTCUSD Account aren't executed as quickly as when compared & analyzed to an ECN trading account or an STP account.

Market Makers

MM refers to brokerage accounts where brokers who are market makers use a dealing-desk setup where they can match client orders internally without needing to go to the broader btcusd market.

Bitcoin orders may also be implemented against their traders - this means that the cryptocurrency broker may assume the side of the market trend that goes against a bitcoin trader's existing open trades. The cryptocurrency broker has the power to either execute a order that is on the trend direction that is opposite of a bitcoin trader's order, therefore when the bitcoin trader experiences a loss, the broker earns a profit, & when the online trader earns a profit, the online broker incurs a loss.

Regulated Online Brokers

Regulated Online 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 practices against their customers because they are audited by their regulators annually

Choose regulated STP brokers for safe trading.

Crypto Brokers Type - Brokers Types - ECN, STP, NDD, DD, Market Makers - Bitcoin Liquidity Provider - Crypto Liquidity Providers

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