What is the Difference Between ECN and Standard Gold Trading Account?
ECN XAUUSD Trading Account vs Standard XAUUSD Trading Account
ECN Gold Trading Account includes Paying of Commissions on top of gold trading spreads while Standard xauusd trading accounts only include paying of spreads without paying commissions.
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.
Standard Gold Trading Accounts
Standard Gold Trading Account - the Standard Gold Trading Account brokers will send client orders direct to their Gold Trading Liquidity Provider, the Gold Trading Liquidity Provider is a big bank with deep liquidity to trade on the interbank network.
A Standard Gold Trading Account provided by a xauusd trading broker can either have one Gold Trading Liquidity Provider or many liquidity providers.
The best thing about Standard gold trading Accounts is that xauusd traders can place their xauusd trades immediately with instant execution because they have access to the interbank market via their STP gold broker execution.
Standard Gold Trading Accounts will not charge commissions, but will charge spreads on xauusd trades. Because traders have access to the interbank market execution, there is no requotes on the gold orders neither any order waiting for execution, the order execution is instant.
