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

ECN Stock Account vs Standard Stocks Account

ECN Stock Account includes Paying of Commissions on top of stocks spreads while Standard stocks accounts only include paying of spreads without paying commissions.

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.

Standard Stocks Accounts

Standard Stocks Account - the Standard Stocks Account stocks brokers will send client orders direct to their Stocks Liquidity Provider, the Stocks Liquidity Provider is a large bank with deep liquidity to trade on the inter-bank network.

A Standard Stocks Account provided by a broker can either have one Stocks Liquidity Provider or many liquidity providers.

The best thing about Standard stocks Accounts is that stock traders can place their stock trades immediately with instant execution because they have got access to interbank markets via their STP stocks broker execution.

Standard Stocks Accounts will not charge commissions, but will charge spread on stock trades. Because traders have access to the inter-bank markets execution, there's no re quotes on the stock orders neither any stock order waiting for execution, the order execution is instant.