[Exness: For beginners] Differences between order methods STP and ECN Thorough comparison of accounts and spreads

Feature

In Exness, the order method is divided into STP and ECN. This varies by account type, with Standard Cent, Standard and Pro accounts being STP and the remaining account types being ECN. What is the difference between these ordering methods?

The order method differs depending on the account type.

Standard Cent, Standard, and Pro accounts are STP, and Low Spread and Zero accounts are ECN. Please refer to the article below for the differences in the functions of each account type. The biggest selling point of Exness among overseas FX companies is that the pips are narrow. There are no bonuses or campaigns, but this is a FX company with a very good reputation. There is a wide variety of financial products available, including not only FX currency pairs, but also gold, virtual currency (Bitcoin), precious metals, energy, stock indexes, etc.

Difference between STP method and ECN method

So what is the difference between the STP method and the ECN method in the first place? First, let’s take a look at the characteristics of each order method.

What is the STP method?

STP is an abbreviation for Straight Through Processing. The feature is that only spreads are charged and transaction fees are not charged. In this method, orders flow directly to the market, and are automatically closed at the lowest spread. In this method, the contract rate is very high and there is a risk that slippage is likely to occur.

What is the ECN method?

ECN is an abbreviation for Electronic Communications Network. In the case of ECN, orders flow to the interbank market and are in the form of relative trading. There is a risk that it will be difficult to execute orders during times of low trading volume or large lots. However, on the other hand, it has the advantage that slippage is less likely to occur.

transaction cost

The ECN method and the STP method differ in the method of calculating transaction costs. In STP, the spread displayed on MT4, MT5, etc. is the cost. On the other hand, in ECN, the total value of spread + transaction fee is the cost.

difference in execution power

Since the execution power of the ECN method and the STP method differs depending on the market situation, it is not possible to say which one is better. The ECN method is a very excellent method for trading large lots during periods of high trading volume. Conversely, there is a problem that it is difficult to complete orders during Asian hours when the trading volume is low. The STP method is the opposite, and the execution power increases during times when the trading volume is low and for small lot orders.

amount of information

ECN is overwhelmingly superior in terms of information volume. This is because you can see board information in the ECN method. There is an advantage that you can trade while watching the price and order volume in real time like stocks. This is a very important factor for traders. This is because you can move while looking at how many orders are currently running and whether the trading volume is torso.

NDD method for both ECN and STP accounts

Both ECN and STP accounts are classified as NDD. NDD stands for None Dealing Desk. We call this format NDD, in which customer orders are sent directly to the interbank market. The FX broker does not interfere with the orders of its customers, but instead passes them through the system to the interbank market, so the broker does not interfere in any way with the orders of the traders. Therefore, it can be said that it is a trading method that is very easy to fight from the trader’s point of view.

What is the DD method?

The opposite of NDD is the DD method. DD is an abbreviation for Dealing Desk and refers to the format in which FX brokers intervene between customers and the interbank market. Experienced traders may find it very difficult to do this, as dealers counter-order customer orders and transfer them to the interbank market.

What is the interbank market?

By the way, there is a term called interbank market explained above. An interbank refers to a market in which institutional investors such as FX brokers and banks participate.

You can open an account for free

You can open an account with Exness for free. The margin maintenance rate can withstand up to 0. Since the minimum deposit amount is low, you can trade with small amounts of funds. Contract rejections will not occur, scalping is OK, and automatic trading (EA) is possible. The support service is solid, and even those without knowledge can trade. The trading environment is better compared to fxgt, titanfx, bigboss, gemforex, threetrader, xmtrading, etc.

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