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

ECN CFD Account vs NDD 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.

NDD CFDs Accounts

NDD stand for Non-Dealing Desk cfd execution of orders, these NDD CFDs Account cfds brokers do not implement a dealing desk - this makes this type of execution model to have less trading restrictions as opposed to Dealing Desk Execution Model.

NDD Execution means that trades from cfd traders account will be executed direct to the inter-bank exchange cfds market. The orders will be matched with other orders in the inter-bank cfd market using the broker Non Dealing Desk order execution model.