What is the Difference Between STP and DD XAUUSD Account in XAUUSD?

STP Account XAUUSD vs DD Account XAUUSD

STP XAUUSD Accounts

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

An STP XAUUSD Account provided by an STP xauusd broker can either have one XAUUSD 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 market execution because they have access to interbank 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 the inter-bank market execution, there is no requotes on xauusd orders neither any trade order waiting for execution, order execution is instant.

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 trading 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 prices of orders aren't real-time & the broker can requote a xauusd trader's order if the gold price of the xauusd market changes quick enough before broker's dealing-desk places the order online or before they match the trade order in online inter-bank gold trading market.

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