In this article, we will discuss about the types of trading accounts available at Doo Prime. Understanding your trading style will be the first step in Forex trading, picking the right broker will be the next, and then the last but not the least will be the types of trading accounts that will suit your needs.
Of course, the above three-steps are only the first part in trading Forex, the second part will be the most important one. Apart from that, to master trading, you will need to learn how to follow the trade or do the trading and that will be a very long learning journey!
But before that, let’s take a quick look to learn about Doo Family before we discuss about the types of trading accounts that are offered by Doo Prime. Only then, you will get the answer as to why Doo Prime is the right choice in the world of online trading.
Strong Support From The Doo Family
Under the umbrella of Doo Family, Doo Holding Group Limited is the main company founded in Hong Kong in 2014. Doo Prime, Doo Tech, Doo Clearing, and Doo Intelligence are all established brands under the group.
With a monthly average turnover reaching USD 35 billion, Doo Prime is one of the top and reliable online brokerage company. There is a total of 109,800 regular customers whom are using its online trading platforms globally and more than 150 institutional clients.
With years of industrial experiences and strong backend support from the group, Doo Prime is also able to provides it’s clients with diverse trading instruments to trade ranging from Stocks, Futures, Energies, Forex, Indices, Precious Metals, and Crypto currencies through one single online trading account.
Okay, it is time to get down to business and learn more about the types of trading accounts available at Doo Prime.
Types of Trading Accounts : Classic Account and Quantum Account
In Doo prime, there are two types of trading accounts, namely the Classic Account and Quantum Account. Classic Account is basically a Straight Through Processing (STP) type of account. Whereas, Quantum Account is an Electronic Communication Network (ECN) type of account.
To further explain the differences between the Classic Account and Quantum Account, we may need first to understand the type of brokers in the market.
In brief, there are mainly two types of brokers in the market now, which are Dealing Desk Forex brokers and No Dealing Desk Forex brokers ; and the account types are separated depending on how they execute the orders.
Dealing Desk Brokers are also known as Market Makers and are usually found within a financial institution or large corporate banks, which is the place where dealers execute trades. In exact words, it is a place to match client orders.
Anyway, dealing desks are not exclusive to foreign exchange, although Forex is the largest financial trading market with an average daily turnover of more than US$ 5 trillion. Banks and financial institutions will also use dealing desks to trade equities, commodities, and other financial assets.
Dealing Desk Broker VS No Dealing Desk
Forex brokers who operate through dealing desk brokers models make money via spreads and they would provide liquidity to their clients. They create a market for their clients by setting up the bidding and asking prices.
In most cases, dealing desk brokers keep those trades within their liquidity pools and do not require external liquidity providers, meaning they often take the other side of a client’s trade.
The broker’s platform that is the total opposite of Dealing Desk Broker is called “No Dealing Desk Brokers”. The No Dealing Desk Brokers are brokers that do not pass their clients’ orders through a dealing desk.
In fact, No Dealing Desk Brokers work with liquidity providers to give their clients variable spreads, to match traders with other traders who would like to take the other side of a trade. The brokers also tend to have lower spreads than dealing desk brokers, and it is not fixed as opposed to the Dealing Desks platform.
Doo Prime Adopted The No Dealing Desk Model
Doo Prime offers Classic Account (STP) and Quantum Account (ECN), which are both types of trading accounts that adopted the no dealing desk model. This means that the platform simply links two parties together and it does not take the other side of their clients’ trade.
STP or ECN accounts both have similar characteristics in many ways, but most of the traders would prefer the STP account rather than the ECN account, as there is no commission charged per trade for STP account holders.
STP Forex brokers will pass all their clients’ orders directly to the liquidity provider and the markets will then generally absorb the order without any intervention from the brokerage platform. This also means that the STP brokers are making money through the spreads charged for every trade.
As for the ECN account, it is a computerized system that anonymously matches buy and sell orders, and it connects significant brokerages and individual traders so that they can trade directly among themselves without going through an intermediary.
ECN account also enables traders in different geographic locations to trade with each other quickly and easily.
Therefore, most of the institutional traders would prefer to open ECN accounts to enjoy tighter spreads at the cost of a commission per trade that is charged as a percentage of the traded lots.
And most of the retail traders are more comfortable with the higher STP spreads rather than accounting for the commission for each trade.
So, it depends on each trader if a commission-free trade is their utmost concern.
Classic Account VS Quantum Account
ECN is more dominant than STP accounts as traders are exposed to the actual liquidity available in the market when we looked from the speed of trade execution. On the other hand, STP accounts may be a barrier to larger brokers as it can be slower in terms of trade execution times and a few re-quotes.
Besides, ECN accounts have minimal instances of re-quotes, and it guaranteed that a trader’s position would be filled at the strike price, even if it is a partial fulfillment of the order.
Therefore, Doo Prime solemnly promises it included no-repeat quotation and providing the fastest ECN/STP trading model for its clients to make all valid orders in the shortest possible time.
To further explain, below is the comparison table for the classic account (STP) and Quantum Account (ECN) available at Doo Prime.
|Type||Classic Account (STP)||Quantum Account (ECN)|
|Leverage||1:1 to 1:400||1:1 to 1:400|
|Minimum Credit Amount||US$ 100||US$ 5,000|
|Minimum Trading Lot||0.01||0.01|
|Maximum Single-to-order Quantity||40 hands||40 hands|
|Maximum Order Quantity of The Account||Unlimited||Unlimited|
|Contract||Market price deal||Market price deal|
As shown in the table above, both the STP and ECN accounts offered by Doo Prime have the same maximum leverage ratio which is up to 400 times, a warning line set of 100%, a minimum trading lot at 0.01, maximum single-to-order quantity up to 40 hands, unlimited order quantity of the account, and the flat line to be at a stable 30%.
The minimum credit amount required by the accounts will be the only difference. Classic Account only needs US$ 100, but ECN will need a minimum of US$ 5,000 for registration.
Doo Prime Offers More Than 60 Currency Pairs For Trading
Doo Prime also offers a wide range of currency trading products, including direct, cross, and minority currency pairs. When you download the Doo Prime trading platforms such as the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) among others, you will be able to trade more than 60 currency pairs worldwide.
Doo Clearing, the UK based Spot Forex and Contracts for Difference (CFDs) liquidity provider is a liquidity provider to Doo Prime. When the customers open an account with Doo Prime, they will enjoy the same fees as Doo Clearing’s many institutional clients, which has served up to 50 foreign securities companies as of today.
Apart from that, as part of the Doo family and a sister brand to Doo Prime, Doo Clearing has received regulatory approval from the UK’s Financial Conduct Authority (FCA).
Client’s Capitals Are Saved In Tier-1 Banks
Doo Prime has been strictly isolating clients’ capitals with their running capitals and has been depositing them in Tier 1 banks plus strictly adhering to the examination system of international banks to ensure the security of clients’ capitals.
With the advanced technical support from Doo Tech, Doo Prime’s financial data and clearing centers are located at Equinix® data centers in Hong Kong, London, New York, Singapore, and Tokyo.
Without further ado, please log in to Doo Prime to sign up for your account today! You can click the link below (https://user.dooprime.com/signup/index?hl=en&website=dooprime) to sign up.