What is the Difference Between Straight Through Processing and Dealing Desk Account in CFD?

STP CFD Account vs DD CFD Account

STP CFDs Accounts

STP CFDs Account stands for Straight Through Processing, the STP CFDs Account cfd brokers will send client orders direct to their CFD Liquidity Provider, the CFD Liquidity Provider is a large bank with deep liquidity to trade on the inter-bank network.

An STP CFDs Account provided by an STP cfd broker can either have one CFD Liquidity Provider or many liquidity providers.

The best thing about STP CFDs Accounts is that cfds traders can place their cfds trades immediately with instant market execution because they have access to interbank markets via their STP cfd broker.

STP CFDs Accounts will not charge commissions, but will charge spreads on cfds trades. Because traders have access to the inter-bank market execution, there is no requotes on the cfd orders neither any trade order waiting for execution, order execution is instant.

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 market.

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

Dealing Desks will issue cfd traders with a lot of order re quotes, meaning cfd prices of orders aren't real-time & cfd broker can requote a cfd trader's order if the cfd price of the cfd market changes quick enough before broker's dealing-desk places the order online or before they match the trade order in online inter-bank cfd 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 trading account.