Types of Crypto Broker - Types of Crypto Brokers

Straight Through Processing(STP)STP Online Broker, NDD

Different Types of Bitcoin Brokers List - below is an explanation of the Different Types of Brokers.

ECN - Electronic Communication Network Broker - Types of Bitcoin Brokers

ECN Broker stands for Electronic Communication Network, these ECN bitcoin brokers are connected to the interbank network directly through an electronic communication network & bitcoin orders from the ECN Bitcoin Broker are placed straight to the electronic network. The ECN Broker will display different bitcoin quotes from different liquidity providers. The quotes placed by these ECNs network of liquidity providers are direct from the interbank network and orders are executed directly in the interbank bitcoin market - once a trader trading with an ECN broker places a btcusd order with their crypto currency broker.

These ECN brokers will charge commissions + spread for every bitcoin trade transaction order. For these ECN Broker execution method every bitcoin trade is matched to another in real time over the interbank network - ECN Network.

STP - Straight Through Processing Broker - Types of Bitcoin Brokers

STP Broker stands for Straight Through Processing, the STP bitcoin brokers will send the trader orders direct to their Bitcoin Liquidity Provider, the BTCUSD CryptoCurrency Liquidity Provider is a big bank with deep liquidity required to trade in the interbank net-work.

An STP Broker can either have one bitcoin liquidity provider or many liquidity providers.

Best thing about STP Bitcoin Brokers is that traders can open their cryptocurrency trades immediately on the online bitcoin market with instant execution because they have access to the interbank market through their STP bitcoin broker.

STP Bitcoin Brokers will not charge commissions, but will charge spread on crypto trades. Because traders have access to the interbank markets execution, there's no re-quotes on the bitcoin orders neither is there any bitcoin order waiting for execution, the trade order execution is instant.

NDD - Non Dealing Desk Broker - Types of Bitcoin Brokers

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

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

DD - Dealing Desk Broker - Types of Bitcoin Brokers

DD stands for dealing desk, these DD bitcoin brokers have a dealing-desk where they can match make cryptocurrency orders & execute bitcoin orders in online inter bank exchange market.

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

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

Dealing Desk bitcoin brokers therefore means that trading order execution of bitcoin orders is not instant & therefore this execution model may mean that crypto orders executed using a DD Broker are not executed as quickly as when compared and analyzed to an ECN broker or an STP broker.

Market Maker Broker - Types of Bitcoin Brokers

Market Maker are bitcoin brokers that have a dealing-desk where they can match bitcoin orders in house without going to the online interbank exchange market.

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

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Types of Crypto Broker - Types of Crypto Brokers

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