There are two main types of trading methods offered by overseas forex brokers: NDD (Non-Dealing Desk) and DD (Dealing Desk). Furthermore, the NDD method is divided into ECN (Electronic Communication Network) and STP (Straight Through Processing), so many people may be wondering which method to use. This article will explain in detail the differences, advantages, and disadvantages of the NDD and DD methods. We will also introduce who is suited to the NDD and DD methods, as well as the characteristics of the ECN and STP methods, so please use this as a reference. Contents 1 Types of Overseas Forex Trading Methods 2 What is the NDD Method? What are its characteristics? 2.1 What is the ECN Method? What are its characteristics? 2.2 What is the STP Method? What are its characteristics? 3 What is the DD Method? What are its characteristics? 4 Differences between NDD and DD methods 5 Advantages of NDD method 5.1 High transparency of transactions 5.2 Small time lag in execution 5.3 Easy to scalp 6 Disadvantages of NDD method 6.1 Wide spreads 6.2 Low leverage 7 Advantages of DD method 7.1 Narrow spreads 7.2 Easy to trade minor currency pairs 8 Disadvantages of DD method 8.1 Slow execution 8.2 Low transparency of transactions 8.3 Prone to requotes 8.4 Many FX brokers do not allow scalping 9 Who is NDD method suitable for 9.1 People who prioritize safety 9.2 People who want to scalp 10 Who is DD method suitable for 10.1 People who want to trade with narrow spreads 10.2 People who want to trade even minor currency pairs 11 Frequently asked questions about NDD and DD methods in overseas FX 11.1 What is order rejection? 11.2 Which is recommended, NDD or DD method? 11.3 Which is recommended, STP or ECN? 12 Summary of NDD and DD methods in overseas FX Types of overseas FX trading methods Overseas FX trading methods can be divided as follows. They can be broadly divided into two types: NDD and DD, and the NDD method is further divided into ECN and STP. The characteristics of each are explained in detail below. What is the NDD method? What are its characteristics? The NDD method is an abbreviation for "No Dealing Desk," and it is a trading method that connects investors' orders directly to the interbank (electronic exchange). Interbank: A place where orders from investors and financial institutions are gathered. In the NDD method, the process from order to execution is processed systematically, so it is characterized by trading directly with the market without going through an FX broker. The NDD method is further divided into ECN and STP. These two trading methods are explained in detail below. If you want to know more about the NDD method, please refer to this. What is the ECN method? What are its characteristics? The ECN system directly connects investors' orders to the market and automatically matches them with orders from other investors. Because it directly connects investors' orders to the market, it is characterized by high transparency and fairness, and fast order execution speed. While the ECN system does not add a spread to the rate, a trading commission is incurred with each trade. Although it offers very high transparency, be aware that a trading commission is charged in addition to the spread. ... Continue reading What are the NDD (ECN/STP) and DD methods in overseas FX? Explanation of differences, advantages, and disadvantages