What is the Difference Between Electronic Communication Network and Non Dealing Desk Account in Indices Trading?
ECN Indices Trading Account vs NDD Indices Trading Account
ECN Indices Trading Accounts
ECN Indices Trading Account stands for Electronic Communication Network, these ECN Indices Trading Account indices brokers are connected to the interbank network directly through an electronic communication network and the indices orders from the ECN Indices Trading Account are placed straight to the electronic network.
The ECN Indices Trading Account will display different orders from different banks. The indices 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 indices trader trading with this ECN account places an order with their stock indexes trading broker.
These ECNs account will charge commissions + spread for every indices trade. For these ECN Indices Trading Account execution method every trade is matched to another in real time over the interbank network - ECN Network.
NDD Indices Trading Accounts
NDD stand for Non-Dealing Desk indices trading execution of orders, these NDD Indices Trading Account indices brokers do not implement a dealing desk this makes this type of execution to have less trading restrictions as opposed to the Dealing Desk Execution.
NDD Execution means that trades from the indices traders account will be executed directly to the online interbank exchange stock indexes market. The orders will be matched with other orders in the online stock indices market using the indices broker Non Dealing Desk order execution model.