What is Difference Between STP and NDD Account in Forex?

STP Account vs NDD Account - STP Forex Trading Account vs NDD Trading Account

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.

NDD Accounts

NDD stand for Non-Dealing Desk forex execution of orders, these NDD Account FX brokers don't implement a dealing desk - this makes this type of execution model to have less trading restrictions as opposed to Dealing Desk Execution Model.

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