What is the difference between ECN, DMA, STP and MM?
| MM | STP | DMA | ECN | |
|---|---|---|---|---|
| Full name | Market Maker | Straight Through Processing | Direct Market Access | Electronic Communication Network |
| Broker structure | DD | STP + NDD | DMA + STP + NDD | ECN + DMA + STP + NDD |
| Dealing model | Dealing Desk | No Dealing Desk | No Dealing Desk | No Dealing Desk |
| Execution | Instant Execution | Instant & Market Execution | Market Execution | Market Execution |
| Spreads | fixed | fixed & floating | floating | floating |
| Pricing | 4 & 5 digits | 4 & 5 digits | 5 digits | 5 digits |
| Commission | no | no | no & yes | yes |
| Who is on the other side of your trade | Your broker | Orders sent to another broker | Orders sent to several other brokers/banks | Orders sent to the ECN network |
| Conflict of interests | yes | no | no | no |
| Depth of the Market (DOM) | no | no | no & yes | yes |
| Speed of execution | regular | regular | fast | fast |
| Re-qoutes | yes | yes | no | no |
| Slippage | yes | yes | yes | yes |
| News trading | no | no | yes | yes |
| Scalping | no & yes | no & yes | yes | yes |
| Deposit requirements amount | low | low | average | high |
| Spread cost | high | average | low | very low |
| Illustration:Trader | STP broker | Prime broker | Aggregator platform | Global connection | Banks & other Liquidity providers | ECN Network |
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| Related topics: ECN Forex brokers – in-depth description & comparison DMA Forex brokers – DMA vs ECN vs STP STP Forex brokers – difference and trading conditions |
Abbreviation:
- ECN – Electronic Communication Network
- DMA – Direct Market Access
- STP – Straight Through Processing
- NDD – No Dealing Desk
- DD – Dealing Desk
- MM – Market Maker
