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

STP Stock Account vs DD Stock Account

STP Stock Accounts

STP Stock Account stands for Straight Through Processing, the STP Stock 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.

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 interbank markets 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 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.

DD Stock Accounts

DD stands for dealing-desk, these DD account stocks brokers have a dealing desk where they can match trading 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 & the broker can requote a stocks trader's order if the stocks price of the stocks market changes quick enough before the broker's dealing desk places the order online or before they match the trade order in online inter-bank stocks market.

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