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

STP Crude Account Oil Trading vs DD Crude Account Oil Trading

STP Crude Oil Trading Accounts

STP Crude Oil Trading Account stands for Straight Through Processing, 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 Accounts will not charge commissions, but will charge spreads on crude oil trades. Because Oil traders have access to interbank markets execution, there's no requotes on the oil orders neither any trade order waiting for execution, order execution is instant.

DD Crude Oil Trading Accounts

DD stands for dealing-desk, these DD account oil brokers have a dealing desk where they can match trading orders and execute oil trading order in the online oil market.

The oil trader trading with a DD account will get a lot of re-quotes.

Dealing Desks will issue oil traders with a lot of order re quotes, meaning oil prices of orders are not real-time and crude oil broker can requote a oil trader's order if the crude oil price of the crude oil market changes quickly enough before broker's dealing desk places the trading order online or before they match the order in the online oil market.

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