What is 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 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.

NDD Indices Trading Accounts

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

NDD Execution means that trades from the traders account will be executed direct to online inter-bank exchange stock index market. The orders will be matched with other orders in the online stock indices market using the broker Non Dealing Desk order execution trade model.