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

ECN Stock Account vs STP 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.

STP Stock Accounts

STP Stock Account stands for STP, the STP Stock Account stocks brokers will send client orders direct to their Stocks Liquidity Provider, the Stocks Liquidity Provider is a big bank with deep liquidity to trade on the inter-bank net-work.

An STP Stock Account provided by an STP stocks broker can either have one Stocks Liquidity Provider or many liquidity providers.

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

STP Stock Accounts will not charge commissions, but will charge spread on stock trades. Because traders have access to the interbank markets execution, there is no requotes on the stock orders neither any order waiting for trade execution, the order execution is instant.