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

ECN Stock Account vs NDD 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 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.

NDD Stock Accounts

NDD stand for Non-Dealing Desk stocks execution of orders, these NDD Stock Account stock trading brokers do not have a dealing desk - this makes this type of trade execution model to have less trading restrictions compared to Dealing Desk Execution Model.

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