What is Difference Between Straight Through Processing and Dealing Desk Account in Indices Trading?

STP Indices Trading Account vs DD Indices Trading Account

STP Indices Trading Accounts

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

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 the interbank markets via their STP stock indices trading broker.

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

DD Indices Trading Accounts

DD stands for dealing-desk, these DD account indices brokers have a dealing desk execution model where they can match orders & execute indices order in the online stock indices market.

The indices trader trading with a DD account will get a lot of requotes.

Dealing Desks will issue indices traders with a lot of order requotes, meaning indices trading prices of orders are not real-time and stock indices trading broker can requote a indices trader's order if the stock indices trading price of the stock indices trading market changes quickly enough before broker's dealing-desk places the trading order online or before they match the order in online stock indices market.

Dealing Desk accounts therefore means that order execution of stock indices orders is not instant & therefore this execution model may mean that orders executed using a DD Indices Trading Account are not executed as quickly as when compared to an ECN account or an STP trading account.