ECN, STP, NDD, DD and Market Maker

ECN, STP, NDD, DD, Market Makers

The list below shows the different categories of xauusd brokers classified depending on their execution technique.

ECN

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

These ECNs account will charge commissions + spreads for every xauusd trade. For these ECN XAUUSD Account execution method every trade is matched to another in real time over the interbank network - ECN Network.

STP

STP XAUUSD Account stands for STP, the STP XAUUSD Account xauusd brokers will send client 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 XAUUSD Account provided by an STP xauusd broker can either have one XAUUSD Trading Liquidity Provider or many liquidity providers.

The best thing about STP XAUUSD Accounts is that gold traders can place their gold trades immediately with instant execution because they have access to inter bank markets via their STP xauusd broker.

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

Difference between STP and ECN Execution

NDD

NDD stand for Non-Dealing Desk xauusd execution of orders, these NDD XAUUSD Account xauusd brokers do not implement a dealing desk and this is what makes this type of order execution model to have less trading restrictions as opposed to Dealing Desk Order Execution Model.

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

DD

DD stands for dealing desk, these DD account xauusd brokers have a dealing desk model where they can match orders & execute xauusd order in the online interbank gold market.

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

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

Dealing Desk accounts therefore means that order execution of xauusd orders is not instant & therefore this execution model might mean that orders executed using a DD XAUUSD Account are not executed as quickly as when compared to an ECN trading account or an STP account.

Market Makers

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

XAUUSD Trading orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades. This xauusd broker can make the decision to either execute a xauusd order that's the opposite of a xauusd 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.

Regulated XAUUSD Brokers

Regulated XAUUSD Brokers are those that operate under a financial regulatory authority, these companies will adhere to a strict code of ethics lest they lose their operating license, these are the genuine companies that are trusted by traders as they do not carry out unshady trading practices against their clients because they are audited by their regulators annually

Regulated + STP Execution is the best choice to trade with.

XAUUSD Brokers Type - XAUUSD Brokers Types - ECN, STP, NDD, DD, Market Makers - XAUUSD Trading Liquidity Provider - XAUUSD Trading Liquidity Providers