What is Difference Between Electronic Communication Network and Straight Through Processing Account in Indices Trading?

ECN Indices Trading Account vs 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 & indices orders from the ECN Indices Account are placed straight to the electronic net-work.

The ECN Indices Trading Account will display different orders from different banks. Indices quote placed by these ECNs net-work of banks are direct from them to the inter bank network and orders are executed directly to the inter bank 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 Account execution method every trade is matched to another in realtime over the interbank network - ECN Network.

STP Indices Trading Accounts

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

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

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

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