What's the Difference Between ECN and MM Account in Stocks?

ECN Stock Account vs Maker 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 net-work.

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 market once a trader trading with this ECN account places an order with their stocks broker.

These ECNs account will charge commissions + spread 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.

MM Accounts

Market Maker Stock Accounts are stocks broker accounts where Market Maker stocks brokers have a dealing-desk where they can match orders in house without going to the online interbank stocks market.

Stocks orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This stocks broker can make the decision to either execute a stocks order that's the opposite of a stocks trader's order thus if the trader makes a loss the broker makes a profit, & if stocks trader makes a profit the broker makes a loss.