good day all, nice to be with you all today. please can you guys explain the difference between a no dealing desk broker and a dealing desk broker? also please provide some advantages. thanks
Also called market makers, Dealing Desk brokers literally create a market and artificial forex exchange rates for their clients. (DD) brokers make money through spreads and by trading against their clients.
while: No Dealing Desk (NDD) brokers do NOT pass their clients’ orders through a Dealing Desk. This means that they do not take the other side of their clients’ trade as they simply link two parties together.
Even NDD create a market through their own liquidity pools as I understand. Dealing desk brokers have you trading against their book, although these are becoming a rarity, and most are a mix between ECN, STP and market maker depending on the size of your account.
Because my english was not good so I can’t tell you the differences between NDD and DD broker but you should find NDD/STP brokers like Hotforex, Fxpro.
DD broker is marketer, they can trade againts you.
I don’t really now any DD broker, but from what I have learned, I think its best for new traders to beware of them. I know a few NDD/STP brokers like Oanda, Profiforex, Instaforex. Some NDD brokers also offer both STP and ECN account. I don’t like ECN accounts because of the charges associated with it. I prefer to trade with an STP broker offering No Dealing Desk execution.
Hello Freedomoney,
I have been on a demo account for some time and I am ready to start live, was it hard for you to find a broker? it seems there are a lot of problems with withdrawals or they don’t mention they are a DD broker or they are not Regulated.
I have been trying Profiforex on a demo, I really like it, but it is not Regulated. Is that an issue? Have you tried them?
I though I should ask you, since you mention Profiforex on your comment above.
I look forward to your response,
Txs,
MJ
This broker is regulated under SIBA, so saying they are not regulated isn’t fair. I made research on that before i opened there. Plus it doesn’t matter if a broker is registered or not, what matters is if they are reliable and trustworthy. Marcela, since you have been using their them, can you speak a little on the speed you experience there?
more peoples gives preference to Registered broker as investor feel satisfied if broker is registered. But if you know the brokers who has vast experience then give preference to experience but keep check and balance too.
I am careful enough while using this broker because I know they are not under the US or UK regulatory bodies. I have this trust on them because they don’t do any trick with my money or trades. However, I know that they use regulated liquidity providers. I am not sure if you should worry about withdrawals because withdrawals are always on time - 24hours. How long have you been trading with their demo platform. I think you should start trading with real money to see other advantages.