What is Difference Between STP and DD Gold Trading Account?

STP XAUUSD Trading Account vs DD XAUUSD Trading Account

STP Gold Trading Accounts

STP Gold Account stands for STP, the STP Gold Trading Account brokers will send client orders direct to their Gold Trading Liquidity Provider, the Gold Trading Liquidity Provider is a large bank with deep liquidity to trade on inter-bank network.

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 inter bank markets via their STP xauusd trading broker.

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

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 prices of orders aren't realtime and the broker can requote a gold trader's order if the xauusd price of the xauusd market changes quickly enough before broker's dealing-desk places the order online or before they match the order in the 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 Account are not executed as quickly as when compared to an ECN account or an STP account.