What is the Difference Between ECN and MM Account?

ECN XAUUSD Trading Account vs Maker 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.

MM Accounts

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

Gold Trading orders can also be executed against their traders - meaning the xauusd trading 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 gold trader makes a loss the gold broker makes a profit, and if the gold trader makes a profit the gold broker makes a loss.