What's Difference Between ECN and DD XAUUSD Account in XAUUSD?

ECN Account XAUUSD vs DD Account XAUUSD

ECN XAUUSD Accounts

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 net-work.

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.

DD XAUUSD Accounts

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.