What's Difference Between Straight Through Processing and Non Dealing Desk Account in Indices Trading?

STP Trading Account vs NDD Trading Account

STP Trading Accounts

STP Trading Account stands for Straight Through Processing, the STP Account brokers will send client orders direct to their Liquidity Provider, the Liquidity Provider is a large bank with deep liquidity that's required to trade on the inter-bank network.

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

The best thing about STP Trading Accounts is that stock traders can place their stock trades immediately with instant execution because they have access to interbank markets via their STP stock trading broker.

STP Accounts will not charge commissions, but will charge spread on stock trades. Because traders have access to inter-bank market execution, there's no re quotes on the orders neither any trade order waiting for execution, order execution is instant.

NDD Trading Accounts

NDD stand for Non-Dealing Desk indices execution of orders, these NDD Account brokers don't 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 traders account will be executed directly to online interbank exchange stock market. Orders will be matched with other orders in the online market using the broker Non Dealing Desk trade order execution model.