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

STP Indices Trading Account vs NDD Indices Trading Account

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.

NDD Indices Trading Accounts

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