Types of Cryptocurrency Broker - Types of Cryptocurrency Brokers

Straight Through Processing(STP)STP Online Broker, NDD

Different Types of Bitcoin Brokers List - below is an explanation of the Different Types of Brokers.

ECN - Electronic Communication Network Broker - Types of Bitcoin Brokers

ECN Broker stands for Electronic Communication Network, these ECN bitcoin brokers are connected to the interbank network directly through an electronic communication network & bitcoin orders from the ECN Bitcoin Broker are placed straight to the electronic network. The ECN Broker will display different bitcoin quotes from different liquidity providers. The quotes placed by these ECNs network of liquidity providers are direct from the interbank network and bitcoin orders are executed directly in the interbank bitcoin market - once a trader trading with an ECN broker places a bitcoin order with their cryptocurrency broker.

These ECN online brokers will charge commissions + spread for every bitcoin trade transaction order. For these ECN Broker execution method every bitcoin trade is matched to another in real time over the interbank network - ECN Network.

STP - Straight Through Processing Broker - Types of Bitcoin Brokers

STP Broker stands for Straight Through Processing, the STP bitcoin brokers will send the trader orders direct to their Bitcoin Liquidity Provider, the BTCUSD Crypto Liquidity Provider is a big bank with deep liquidity required to trade in the interbank net-work.

An STP Broker can either have one bitcoin liquidity provider or many liquidity providers.

The best thing about STP Bitcoin Brokers is that traders can open their cryptocurrency trades immediately on the online bitcoin market with instant execution because they have access to the interbank market through their STP bitcoin broker.

STP Bitcoin Brokers will not charge commissions, but will charge spread on crypto trades. Because bitcoin traders have access to the interbank markets trading execution, there is no re-quotes on the bitcoin orders neither is there any bitcoin order waiting for execution, the trade order execution is instant.

NDD - Non Dealing Desk Broker - Types of Bitcoin Brokers

NDD stand for Non-Dealing Desk bitcoin execution of orders, these NDD bitcoin 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 Bitcoin Trade Execution.

NDD Order Execution means that trades from the traders account will be executed directly to the interbank exchange btcusd market. The bitcoin orders will be matched with the other trading bitcoin orders in the interbank exchange market using the online broker Non Dealing Desk order execution model.

DD - Dealing Desk Broker - Types of Bitcoin Brokers

DD stands for dealing desk, these DD bitcoin brokers have a dealing-desk where they can match make cryptocurrency orders & execute bitcoin orders in online inter bank exchange market.

The bitcoin trader trading with a DD broker will get a lot of requotes.

Dealing Desks will issue bitcoin crypto currency traders with a lot of order re quotes, meaning bitcoin prices of bitcoin orders are not real-time & the broker can re-quote a bitcoin trader's order if the bitcoin price of the btcusd market changes quick enough before the broker's dealing desk places the order online or before they match the bitcoin order in the online inter bank bitcoin market.

Dealing Desk bitcoin brokers therefore means that trading order execution of bitcoin orders is not instant & therefore this bitcoin execution model may mean that crypto orders executed using a DD Broker are not executed as quickly as when compared to an ECN broker or an STP broker.

Market Maker Broker - Types of Bitcoin Brokers

Market Maker are bitcoin brokers that have a dealing-desk where they can match bitcoin orders in house without going to the online interbank exchange market.

Bitcoin orders can also be executed against their bitcoin traders - meaning the broker can take the opposite side of a bitcoin traders open cryptocurrency trades. This bitcoin broker can make decision to either execute a bitcoin order that is the opposite direction of a bitcoin trader's order thus if the trader makes a loss the online broker makes a profit, & if the trader makes a profit the broker makes a loss.

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Types of Cryptocurrency Broker - Types of Cryptocurrency Brokers

Straight Through Processing(STP)STP Online Broker, NDD