What is 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 Net-work, these ECN Gold Trading Account brokers are connected to the inter bank network directly through an electronic communication network & the gold orders from the ECN Gold Account are placed straight to the electronic net-work.

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

These ECNs account will charge commissions + spreads for every gold trade. For these ECN Gold Account execution technique every trade is matched to another in realtime over the inter bank 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 & 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 realtime & the broker can requote a gold trader's order if the xauusd trading price of the xauusd market changes quick enough before broker's dealing-desk places the order online or before they match the trade order in online xauusd market.

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