What is Difference Between Electronic Communication Network and Market Maker Indices Trading Account in Indices Trading?

ECN Indices Trading Account vs Maker Indices Trading Account

ECN Indices Trading Accounts

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

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 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 stock indices trading broker.

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

MM Accounts

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

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

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