What is Difference Between Electronic Communication Network and Dealing Desk Account in CFD?

ECN CFD Account vs DD CFD Account

ECN CFDs Accounts

ECN CFDs Account stands for Electronic Communication Network, these ECN CFDs Account cfd brokers are connected to the interbank network directly through an electronic communication network & the cfd orders from the ECN CFDs Account are placed straight to the electronic net-work.

The ECN CFDs Account will display different orders from different banks. The cfd quote placed by these ECNs network of banks are direct from them to the interbank net-work and orders are executed direct to the interbank markets once a trader trading with this ECN account places an order with their cfd trading broker.

These ECNs account will charge commissions + spreads for every cfd trade. For these ECN CFDs Account execution technique every trade is matched to another in real time over the interbank network - ECN Network.

DD CFDs Accounts

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

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

Dealing Desks will issue cfd traders with a lot of order requotes, meaning cfd prices of orders aren't realtime and the broker can requote a cfd trader's order if the cfd price of the cfd market changes quickly enough before the broker's dealing-desk places the order online or before they match the order in online inter-bank cfd trading market.

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