What is Difference Between Straight Through Processing and Non Dealing Desk Account in Commodity Trading?

STP Commodities Trading Account vs NDD Commodities Trading Account

STP Commodities Trading Accounts

STP Commodities Trading Account stands for STP, the STP Commodities Trading Account commodity brokers will send client orders direct to their Commodity Trading Liquidity Provider, the Commodity Trading Liquidity Provider is a large bank with deep liquidity that's required to trade on the interbank network.

An STP Commodities Trading Account provided by an STP commodities trading broker can either have one Commodity Trading Liquidity Provider or many liquidity providers.

The best thing about STP Commodities Trading Accounts is that commodities traders can place their commodities trades immediately with instant execution because they have access to inter bank market via their STP commodities trading broker.

STP Commodities Accounts will not charge commissions, but will charge spread on commodities trades. Because traders have access to interbank market execution, there is no requotes on the commodities orders neither any order waiting for trade execution, the order execution is instant.

NDD Commodities Trading Accounts

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

NDD Execution means that trades from the traders account will be executed directly to the interbank exchange commodities market. Orders will be matched with other orders in the online commodity market using the broker Non Dealing Desk order execution model.