What is the Difference Between ECN and DD Gold Trading Account?

ECN XAUUSD Trading Account vs DD XAUUSD Trading Account

ECN Gold Trading Accounts

ECN Gold Trading Account stands for Electronic Communication Network, these ECN Gold Trading Account brokers are connected to the interbank network directly through an electronic communication network and the gold orders from the ECN Gold Trading Account are placed straight to the electronic network.

The ECN Gold Trading Account will display different orders from different banks. The gold trading quote placed by these ECNs network of banks are direct from the to the interbank network and orders are executed directly to the interbank market once a trader trading with this ECN account places an order with their xauusd trading broker.

These ECNs account will charge commissions + spread for every gold trade. For these ECN Gold Trading Account execution method every trade is matched to another in real time over the interbank network - ECN Network.

DD Gold Trading Accounts

DD stands for dealing desk, these DD account gold brokers have a dealing desk where they can match orders and execute gold order in the online xauusd market.

The gold trader trading with a DD account will get a lot of requotes.

Dealing Desks will issue gold traders with a lot of order requotes, meaning xauusd trading prices of orders are not real time and the xauusd trading broker can requote a gold trader's order if the xauusd trading price of the xauusd market changes quick enough before the broker's dealing desk places the order online or before they match the order in the online xauusd market.

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