What is Difference Between ECN and NDD Account in Forex?

ECN Account vs NDD Account - ECN Forex Trading Account vs NDD Trading Account

ECN Accounts

ECN Account stands for Electronic Communication Net-work, these ECN Account forex brokers are connected to the inter bank network directly through an electronic communication network and the orders from the ECN Account are placed straight to the electronic net-work.

The ECN Account will display different orders from different banks. Quote placed by these ECNs network of banks are direct from them to the inter bank net-work & orders are executed direct to the interbank market once a trader trading with this ECN account places an order with their forex trading broker.

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

NDD Accounts

NDD stand for Non-Dealing Desk forex execution of orders, these NDD Account FX 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 Execution.

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