What's Difference Between Electronic Communication Network and Non Dealing Desk Account in Indices Trading?

ECN Account vs NDD Account

ECN Accounts

ECN Account stands for Electronic Communication Net-work, these ECN Account brokers are connected to the interbank network directly through an electronic communication network and orders from the ECN Account are placed straight to the electronic net-work.

The ECN Account will show different orders from different banks. The indices quote placed by these ECNs network of banks are direct from them to the inter bank net-work and orders are executed direct to the interbank market once a trader trading with this ECN account places an order with their trading broker.

These ECNs account will charge commissions + spread for every trade. For these ECN Account execution technique every trade is matched to another in realtime over the inter-bank network - ECN Network.

NDD Accounts

NDD stand for Non-Dealing Desk indices execution of orders, these NDD Account brokers do not implement a dealing desk this makes this type of order execution to have less restrictions as opposed to the Dealing Desk Execution.

NDD Execution means that trades from the trader's account will be executed direct to the online inter bank exchange market. The orders will be matched with other orders in the online market using the broker NDD order execution trade model.