NDD versus ECN versus STP | Forex Factory

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NDD versus ECN versus STP

  • #1
  • First Post: Edited Sep 4, 2008 11:42am Sep 3, 2008 7:01am | Edited Sep 4, 2008 11:42am
Does anyone know the differences between NDD ECN AND STP?
  • #2
  • Sep 3, 2008 12:49pm Sep 3, 2008 12:49pm
STP (Straight Through Processing)

The practical application of this term is that it is the component of a platform that gives customers the ability to route orders to liquidity pools of qualified destinations.


ECN (Electronic Communications Network)

The practical application of this term is that it is the component of our platform that allows customers to directly interact with each other anonymously and post bids and offers at limits that reflect within a brokers internal order book. Typically these orders can be placed down to the tenth of a pip, thus cutting considerably into the spread.
  • #3
  • Sep 3, 2008 5:28pm Sep 3, 2008 5:28pm
NDD (No Deal Desk)

Some scrupulous brokers employ a team of "dealers" who periodically checks your closed trades. If they find you were making good profit, they will declare those trades "No Deal", thus the name "No Deal Desk".


BTW you forgot another type of Brokers

LOL (Laugh Out Loud)

This type of broker is related to NDD brokers if not the same. They monitor your account and if they find you were losing money, they will LOL at you.
  • #4
  • Sep 3, 2008 6:15pm Sep 3, 2008 6:15pm
so if i understand this right every NDD model works only with STP . And a ECN broker works with STP and ECN?
  • #5
  • Sep 3, 2008 8:36pm Sep 3, 2008 8:36pm
STP - what you click is what you get

ECN - money moves into the real interbank market, not an artificial one created by the broker
  • #6
  • Sep 3, 2008 8:56pm Sep 3, 2008 8:56pm
Quoting tdion
STP - what you click is what you get

ECN - money moves into the real interbank market, not an artificial one created by the broker
STP= Straight through processing. It has nothing to do with trading. Its all about the settlement of the trade.

ECN = Electronic Communications Network. It is a matching service. A seller will match with a buyer and vice-versa.It is its own exchange.There are no fixed spreads.The prices are determined by the offers and bids that different counterparties put in.
  • #7
  • Sep 4, 2008 8:06am Sep 4, 2008 8:06am
to makes things clear i found this on the internet

ECN vs. STP vs. Deal Desk. It needs to be made clear that there are really
more than two types of platforms. A deal desk is a fixed spread platform where the desk makes their money in the spread trading against all of their customers. This rigs the market against the retail trader because they aren’t seeing true market quotes. The platform can move their quote wherever they need if they want to fill the client. STP (Straight Through Processing) platforms execute directly from the retail client to the banks. The more banks and liquidity in the system, the better the fills for the customer. ECN (Electronic Communications Network) platforms let customer orders interact with other customer orders. Non-deal-desk (NDD) platforms are either the second or third type of platform. EFX GROUP / MBTF are both. We have over a dozen banks in our network which customers execute against directly (STP), but we now also allow customers to hit other customers (ECN) inside of the standard pip increments of the banks. We do not shave anything against customer executions
  • #8
  • Sep 4, 2008 9:36am Sep 4, 2008 9:36am
Quoting BurgerKing
NDD (No Deal Desk)

Some scrupulous brokers employ a team of "dealers" who periodically checks your closed trades. If they find you were making good profit, they will declare those trades "No Deal", thus the name "No Deal Desk".


BTW you forgot another type of Brokers

LOL (Laugh Out Loud)

This type of broker is related to NDD brokers if not the same. They monitor your account and if they find you were losing money, they will LOL at you.
could you give examples?

thanks in advance
  • #9
  • Sep 5, 2008 3:54pm Sep 5, 2008 3:54pm
Quoting giraia_br
could you give examples?

thanks in advance
Example?

A good example is FXOpen!

All trades are executed automatically on their server.
If you made money, they will periodically remove the trades claiming either you were scalping too aggressively, you got a wrong quote, trading on spikes etc. But if you lose money doing the same thing, they will LOL at you claiming those trades are legit. I know someone losing huge amount of money here!
  • #10
  • Sep 6, 2008 9:34am Sep 6, 2008 9:34am


Quoting BurgerKing
Example?

A good example is FXOpen!

All trades are executed automatically on their server.
If you made money, they will periodically remove the trades claiming either you were scalping too aggressively, you got a wrong quote, trading on spikes etc. But if you lose money doing the same thing, they will LOL at you claiming those trades are legit. I know someone losing huge amount of money here!
Charting Markets into the Future...MǎҖ€¥.
  • #11
  • Sep 6, 2008 9:41am Sep 6, 2008 9:41am
"LOL (Laugh Out Loud)

This type of broker is related to NDD brokers if not the same. They monitor your account and if they find you were losing money, they will LOL at you."



loooool ahahahahhahahah
  • #12
  • Sep 7, 2008 3:24am Sep 7, 2008 3:24am
STP
ECN
NDD
LOL
and
SCAM They don´t monitor your account but maybe they will LOL at you.
The component of the platform don´t gives customers the ability to route orders to liquidity pools of qualified destinations.
The component of the platform don´t allows customers to directly interact with each other anonymously and post bids and offers at limits that reflect within a brokers internal order book.
No scrupulous team of "dealers" who periodically checks your closed trades.
Money don´t moves into the real interbank market, or an artificial one created by the broker.
Never click and never get.
  • #13
  • May 9, 2010 2:49pm May 9, 2010 2:49pm
So which broker's type isn't a scam then?
  • #14
  • Oct 2, 2011 12:05pm Oct 2, 2011 12:05pm
Does it mean that ECN has tighter spreads than the other types ?
  • #15
  • Oct 3, 2011 9:49am Oct 3, 2011 9:49am
Quoting plc22ans
Does it mean that ECN has tighter spreads than the other types ?
Simply said - yes.
  • #16
  • Oct 3, 2011 8:37pm Oct 3, 2011 8:37pm
starting to think you cant trust none of them,

anyone know anything about other ways to trade fx
  • #17
  • Oct 3, 2011 8:40pm Oct 3, 2011 8:40pm
In one word...futures

Quoting Hedge212
starting to think you cant trust none of them,

anyone know anything about other ways to trade fx
It's easy to be humbled but hard to be humble.
  • #18
  • Oct 3, 2011 8:44pm Oct 3, 2011 8:44pm
Quoting fxrising
In one word...futures
do you mean like options?
  • #19
  • Oct 3, 2011 8:58pm Oct 3, 2011 8:58pm
Different then options for sure, futures you have a much more regulated trade.
It's easy to be humbled but hard to be humble.
  • #20
  • Oct 4, 2011 3:23am Oct 4, 2011 3:23am
I am with Interactivebrokers atm , trading spot eu and i am happy with them , many times my sl has been only 0.5 pips away and it wasnt trigered , liq is good , spreads are fine , com is ok and i have the ability to trade almost every finacial product i want, so yes it depends if you can trust your broker or not .
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