What is Difference Between ECN and STP Gold Trading Account?

ECN XAUUSD Trading Account vs STP 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.

STP Gold Trading Accounts

STP Gold Trading Account stands for STP, the STP Gold Account brokers will send client orders direct to their Gold Trading Liquidity Provider, the Gold Trading Liquidity Provider is a large bank that has deep liquidity to trade on the interbank net-work.

An STP Gold Trading Account provided by an STP xauusd trading broker can either have one Gold Trading Liquidity Provider or many liquidity providers.

The best thing about STP Gold Trading Accounts is that xauusd traders can place their xauusd trades immediately with instant execution because they have got access to the inter bank markets via their STP xauusd trading broker.

STP Gold Trading Accounts will not charge commissions, but will charge spread on xauusd trades. Because traders have access to the inter bank market execution, there is no requotes on the gold orders neither any order waiting for execution, order execution is instant.