What's Difference Between ECN and STP Crude Oil Trading Account in Oil Trading?

ECN Crude Account Oil Trading vs STP Crude Account Oil Trading

ECN Crude Oil Trading Accounts

ECN Crude Oil Account stands for Electronic Communication Network, these ECN Crude Oil Trading Account oil brokers are connected to the inter-bank network directly through an electronic communication network & oil orders from the ECN Crude Oil Trading Account are placed straight to the electronic network.

The ECN Crude Oil Account will display different orders from different banks. The oil trading quote placed by these ECNs net-work of banks are direct from them to the interbank net-work and orders are executed directly to the interbank market once a trader trading with this ECN account places an order with their crude oil broker.

These ECNs trading account will charge commissions + spreads for every oil trade. For these ECN Crude Oil Account execution technique every trade is matched to another in real time over the inter-bank network - ECN Network.

STP Crude Oil Trading Accounts

STP Crude Oil Account stands for STP, the STP Crude Oil Trading Account oil brokers will send client orders direct to their Oil Trading Liquidity Provider, the Oil Trading Liquidity Provider is a large bank with deep liquidity to trade on the inter-bank net-work.

An STP Crude Oil Trading Account provided by an STP crude oil broker can either have one Oil Trading Liquidity Provider or many liquidity providers.

The best thing about STP Crude Oil Trading Accounts is that crude oil traders can place their crude oil trades immediately with instant market execution because they have access to interbank markets via their STP crude oil broker.

STP Crude Oil Trading Accounts will not charge commissions, but will charge spreads on crude oil trades. Because Oil traders have access to the inter bank markets trading execution, there is no requotes on the oil orders neither any order waiting for execution, the trading order execution is instant.