Types of XAUUSD Brokers

Straight Through Processing Broker, NDD

Different Types of XAUUSD Brokers List - below is an explanation of the Different Types of Gold Brokers.

ECN - Electronic Communication Network Broker - Types of XAUUSD Brokers

ECN Broker stands for Electronic Communication Network, these ECN xauusd brokers are connected to the interbank network directly through an electronic communication network & the xauusd orders from the ECN XAUUSD Broker are placed straight to the electronic network. The ECN Broker will display different gold quotes from different liquidity providers. The quotes placed by these ECNs network of liquidity providers are direct from the interbank network and xauusd orders are executed directly in the online xauusd market - once a trader trading with an ECN broker places a xauusd order with their xauusd broker.

These ECN brokers will charge commissions + spread for every xauusd trade transaction order. For these ECN Broker execution technique every xauusd trade is matched to another in real time over the interbank network - ECN Network.

STP - Straight Through Processing Broker - Types of XAUUSD Brokers

STP Broker stands for STP, the STP xauusd brokers will send client trading orders direct to their XAUUSD Trading Liquidity Provider, the XAUUSD Trading Liquidity Provider is a large bank with deep liquidity that's required to trade on the inter-bank network.

An STP Broker can either have one xauusd trading liquidity provider or many liquidity providers.

The best thing about STP XAUUSD Brokers is that gold traders can place their gold trades immediately on the online xauusd market with instant execution because they have access to the interbank market through their STP gold trading broker.

STP XAUUSD Brokers will not charge commissions, but will charge spreads on gold trades. Because xauusd traders have access to inter bank markets execution, there is no requotes on the xauusd orders neither is there any xauusd order waiting for execution, the order execution is instant.

NDD - Non Dealing Desk Broker - Types of XAUUSD Brokers

NDD stand for Non-Dealing Desk xauusd trading execution of orders, these NDD xauusd brokers do not implement a dealing desk & this makes this type of order execution to have less trading restrictions as opposed to the Dealing Desk XAUUSD Trade Execution.

NDD Execution means that gold trades from the traders account will be executed directly to the online inter bank exchange xauusd trading market. The xauusd orders will be matched with other xauusd orders in the interbank exchange market using the broker Non Dealing Desk order execution model.

DD - Dealing Desk Broker - Types of XAUUSD Brokers

DD stands for dealing desk, these DD xauusd brokers have a dealing-desk where they can match xauusd orders and execute xauusd orders in the online inter bank exchange market.

The xauusd trader trading with a DD broker will get a lot of re-quotes.

Dealing Desks will issue xauusd traders with a lot of order re quotes, meaning gold prices of xauusd orders are not real time and the broker can requote a xauusd trader's order if the gold price of the xauusd market changes quick enough before the broker's dealing desk places the order online or before they match the xauusd order in the online gold market.

Dealing Desk xauusd brokers therefore means that order execution of xauusd orders isn't instant and therefore this xauusd trading execution model may mean that xauusd orders executed using a DD Broker aren't executed as quickly as when compared to an ECN broker or an STP broker.

Market Maker Broker - Types of XAUUSD Brokers

Market Maker are xauusd brokers that have a dealing desk where they can match xauusd orders in house without going to the online inter-bank exchange market.

XAUUSD Trading orders can also be executed against their xauusd traders - meaning the broker can take the opposite side of a traders open gold trades. This gold broker can make the decision to either execute a xauusd order that is the opposite direction of a trader's order thus if the trader makes a loss the broker makes a profit, & if xauusd trader makes a profit the broker makes a loss.