What's Difference Between ECN and DD Stock Account in Stocks?

ECN Stock Account vs DD Stock Account

ECN Stock Accounts

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

The ECN Stock Account will display different orders from different banks. Stocks 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 markets once a trader trading with this ECN account places an order with their stocks broker.

These ECNs trading account will charge commissions + spreads for every stocks trade. For these ECN Stock Account execution method every trade is matched to another in real time over the interbank network - ECN Network.

DD Stock Accounts

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

The stocks trader trading with a DD account will get a lot of requotes.

Dealing Desks will issue stocks traders with a lot of order requotes, meaning stocks prices of orders are not realtime and the broker can requote a stocks trader's order if the stocks price of the stocks market changes quickly enough before the broker's dealing desk places the trading order online or before they match the order in the online interbank stocks market.

Dealing Desk accounts therefore means that order execution of stocks orders is not instant & therefore this execution model might mean that orders executed using a DD Stock Account aren't executed as quickly as when compared to an ECN account or an STP account.