That is the only difference. True ECN forex brokers, on the other hand, allow the orders of their clients to interact with the orders of other participants in the ECN.
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However, in the event that there are no matching orders, they will have to take the opposite side of your trade. Take note that different forex brokers have different risk management policies, so make sure to check with your own broker regarding this. NDDs are like bridge builders: NDDs can either charge a very small commission for trading or just put a markup by increasing the spread slightly. Some brokers claim that they are true ECN brokers, but in reality, they merely have a Straight Through Processing system.
Forex brokers that have an STP system route the orders of their clients directly to their liquidity providers who have access to the interbank market. NDD STP brokers usually have many liquidity providers, with each provider quoting its own bid and ask price.
In their system, they will see three different pairs of bid and ask quotes. Their system then sorts these bid and ask quotes from best to worst. In this case, the best price in the bid side is 1. To compensate them for their trouble, your broker adds a small, usually fixed, markup. If their policy is to add a 1-pip markup, the quote you will see on your platform would be 1. You will see a 3-pip spread.
The 1-pip spread turns into a 3-pip spread for you. Your broker will earn 1 pip in revenue. If the spreads of their liquidity providers widen, they have no choice but to widen their spreads too.
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