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VS |
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| NDD + STP + DMA + DMT + ECN pricing |
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NDD + STP |
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ECN (Electronic Communication Network)
NDD - No Dealing Desk
STP - Straight Through Processing
DMA - Direct Market Access to the Top-tier liquidity
DMT - Direct Market Trading within ECN liquidity pools
ECN pricing - ECN bid/ask quotes |
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STP (Straight Through Processing)
NDD - No Dealing Desk
STP - Straight Through Processing |
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| ECN is a Network |
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STP is the method of processing orders |
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Top-tier liquidity network, trading is done inside the network |
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Orders are passed straight through to a specific liquidity provider (LP), execution is done at the LP's side |
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| ECN broker is an Agent |
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STP broker is an Agent |
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ECN brokers don't fill client orders, all orders are passed to the ECN liquidity pool, where ECN participants become counterparties to clients' trades |
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STP brokers don't fill client orders either, all orders are passed to another liquidity provider, who executes the order and becomes a counterparty |
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| Multiple Top-tier liquidity providers |
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Few or a Single liquidity provider |
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Unlimited number of Top-tier 1-3 liquidity providers - ECN participants |
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A few liquidity providers, but oftentimes just 1 Brokerage company to whom all orders are sent for execution. This company can also be a sister company of the STP broker |
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| Raw ECN pricing |
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Single broker pricing |
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Raw market prices currently traded on ECN |
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Orders are executed at Market Maker prices |
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| Strictly professional clients |
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Available to retail & professional clients |
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High requirements towards experience level and capital |
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No requirements towards experience level or capital |
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| Highest deposit requirement |
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Lowest deposit requirement |
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Average minimum deposit is $50,000 (but no less than $10,000 USD) |
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STP accounts start from $1 USD |
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| Leverage less than 1 : 100 |
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High leverage |
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Due to the nature of ECN trading, leverage above 1 : 100 is unsustainable |
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No leverage limits, can go as high as 1 : 3000 |
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| Minimum trade size from 0.1 standard lot |
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Minimum trade size from 0.001 standard lot |
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ECN brokers don't offer micro lots. The 0.1 minimum lot size cap is the requirement set by liquidity providers |
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STP brokers are able to offer lowest minimum lot size |
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| Maximum trade size unlimited |
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Maximum trade size is capped |
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No limits on trade size and volume |
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Limits set depending on the processing capacity of a final destination broker (LP) |
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| Low commission |
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No commission |
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Low commission, goes even lower with higher trading volume |
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STP brokers don't charge commission |
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| Floating spreads |
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Floating or fixed spreads |
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Only floating spreads |
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Spread type depends on the Market Maker executing orders, it can be fixed or floating. A fixed spread means there is only 1 Market Maker executing orders for STP, oftentimes it's a sister company. |
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| Trade inside the spread |
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no |
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Traders can place orders between the highest Bid and the lowest Ask price, e.g. become "price makers" |
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Trading on given spreads only, e.g. "price taking" |
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| Trade against other traders |
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no |
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Traders can trade against other traders, market makers or anyone else in the ECN network |
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no |
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| Unlimited access to Market Depth (DOM) |
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No access to Market Depth (DOM) |
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Traders can see true ECN liquidity |
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DOM is not available |
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