What is the Difference Between Electronic Communication Network and Market Maker CFDs Account in CFD?

ECN CFD Account vs Maker CFD Account

ECN CFDs Accounts

ECN CFDs Account stands for Electronic Communication Network, these ECN CFDs Account cfd brokers are connected to the inter-bank network directly through an electronic communication network and 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. Cfd quote placed by these ECNs net-work of banks are direct from them to the interbank net-work & orders are executed direct to the inter bank market once a trader trading with this ECN account places an order with their cfd broker.

These ECNs account will charge commissions + spread 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.

MM Accounts

Market Maker CFDs Accounts are cfd broker accounts where Market Maker cfd brokers have a dealing-desk model where they can match orders in house without going to the inter bank cfd market.

CFD orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This cfd broker can make the decision to either execute a cfd order that is the opposite of a cfd trader's order thus if the trader makes a loss the broker makes a profit, & if the trader makes a profit the broker makes a loss.