Crypto Brokers Types

ECN, STP, NDD, DD, Market Makers

The list below shows the different categories of crypto brokers classified depending on their execution method.

ECN

ECN BTCUSD Account stands for Electronic Communication Net-work, these ECN BTCUSD Trading Account crypto brokers are connected to the interbank network directly through an electronic communication network & crypto orders from the ECN BTCUSD Account are placed straight to the electronic network. ECN BTCUSD Account will display different orders from different banks. Bitcoin trading quote placed by these ECNs net-work of banks are direct from them to the inter bank network & orders are executed directly to the interbank market once a trader trading with this ECN account places an order with their crypto broker,

These ECNs trading account will charge commissions + spreads for every bitcoin trade. For these ECN BTCUSD Account execution method every trade is matched to another in real-time over interbank net-work - ECN Network.

STP

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

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

The best thing about STP BTCUSD Trading Accounts is that cryptocurrency traders can place their cryptocurrency trades immediately with instant execution because they have access to inter bank market via their STP cryptocurrency trading broker.

STP BTCUSD Accounts won't charge commissions, but will charge spreads on cryptocurrency trades. Because Bitcoin traders have access to the inter bank markets trading execution, there is no re-quotes on the crypto orders neither any order waiting for execution, the trade order execution is instant.

Difference between STP and ECN Execution

NDD

NDD stand for Non-Dealing Desk bitcoin trading execution of orders, these NDD BTCUSD Trading Account btcusd brokers do not implement a dealing desk and this is what makes this type of order execution model to have less trading restrictions as opposed to Dealing Desk Order Execution Model.

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

DD

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

The bitcoin trader trading with a DD account will get a lot of re-quotes.

Dealing Desks will issue bitcoin traders with a lot of order re quotes, meaning bitcoin trading prices of orders are not real time and the cryptocurrency broker can requote a bitcoin trader's order if the bitcoin trading price of the btcusd market changes quick enough before the broker's dealing desk places the trading order online or before they match the order in online bitcoin market.

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

Market Makers

Market Maker are crypto broker accounts where Market Maker crypto brokers have a dealing-desk execution model where they can match orders in-house without going to the online bitcoin market.

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

Regulated Crypto Brokers

Regulated Crypto 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 practices against their clients because they are audited by their regulators annually

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

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