What's Difference Between Dealing Desk Account and Market Maker Account in Indices Trading?

DD Account vs Market Maker Account

DD Accounts

DD stands for dealing-desk, these DD account brokers have a dealing desk execution model where they can match orders & execute order in the online market.

The trader trading with a DD account will get a lot of requotes.

Dealing Desks will issue traders with a lot of order requotes, meaning prices of orders are not real-time and stock trading broker can requote a trader's order if the price of the trading market changes quick enough before the broker's dealing desk places the trading order online or before they match the order in the online market.

Dealing Desk accounts therefore means that order execution of orders isn't instant & therefore this execution model might mean that orders executed using a DD Account aren't executed as quickly as when compared to an ECN trading account or an STP trading account.

MM Accounts

Market Maker Accounts are broker accounts where Market Maker brokers have a dealing desk execution model where they can match the orders in house without going to the market.

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

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