What is Difference Between ECN and STP Account in Forex?/h1>

ECN Account vs STP Account - ECN Forex Trading Account vs Forex Trading Account

ECN Accounts

ECN Account stands for Electronic Communication Network, 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. The quote placed by these ECNs net-work of banks are direct from them to the interbank net-work and orders are executed direct to the inter bank 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.

STP Accounts

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

An STP Account provided by an STP broker can either have one Forex Liquidity Provider or many liquidity providers.

The best thing about STP Accounts is that forex traders can place their forex trades immediately with instant execution because they have access to interbank markets via their STP forex broker.

STP Accounts will not charge commissions, but will charge spreads on forex trades. Because traders have access to the interbank market execution, there is no requotes on FX orders neither any order waiting for trade execution, the trading order execution is instant.