What is Difference Between ECN and MM Account?

ECN XAUUSD Trading Account vs Maker Account

ECN Gold Trading Accounts

ECN Gold Account stands for Electronic Communication Network, 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 Trading Account are placed straight to the electronic net-work.

The ECN Gold Account will display different orders from different banks. The gold trading quote placed by these ECNs network of banks are direct from them to the interbank net-work & orders are executed direct 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 Trading Account execution technique every trade is matched to another in realtime over the inter bank network - ECN Network.

MM Accounts

Market Maker Gold Trading Accounts are gold broker accounts where Market Maker gold brokers have a dealing desk where they can match trading orders in house without going to the online xauusd market.

Gold Trading orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This xauusd trading broker can make the decision to either execute a gold order that is the opposite of a gold trader's order thus if the trader makes a loss the broker makes a profit, & if gold trader makes a profit the broker makes a loss.