Can I trust a dealing desk broker? What's your experience

Hi there.
I am not new to forex at all but my experience in cfd trading has entirely been with non dealing desk brokers. Why? From the time I started learning to trade I always understood non dealing desk brokers to be trustworthy or at least I understood their business. With dealing desk brokers although I understand that they have to be regulated for one to trust them but even if so I just don’t trust “market makers”.

Now, a friend of mine who just started live trading told me the broker they are using and upon looking it up I found out it was a dealing desk broker and when I ask about his experience he say it’s too early to tell. I guess I just have some sort of paranoia with them. I would like to fix that. That’s why I am here. I want to know your experiences if you have used a dealing desk broker before, maybe there could be something I am missing from the other end of the table. I would like to know what sort of experiences you have had with them and if I should continue to be scared and stay away like I am already doing or reconsider lol.

Thanks for reading through, didn’t wanna make this too long. Now share with me your experience. I will appreciate if you do that.

Hi Dadofx

When I first started with FX I was with a broker that was a dealing desk broker. I found it frustrating that I would get spiked out on a regular basis. Was that because I was being taken out by my broker?? I don’t know. What I do know is that when I changed brokers to FXCM and opened a no dealing desk account there were none of those suspicious price spikes stopping me out.

Draw whatever conclusion you like. However I will say that if you are betting against the market verse betting against your broker I believe that it makes sense that there is a much fairer chance of winning against the market than against the broker.

Just my opinion.

Cheers

Blackduck

2 Likes

Hey Blackduck

Thank you for sharing your experience. It’s good to hear this from someone with first hand experience and with a mild tone. I appreciate so much mate.

I guess I am not wrong to have this paranoia with them. Actually, you put it very well when you say its “betting against the market vs betting against your broker”. Thank you very much mate. I guess I am fine sticking with non dealing desk. Makes so much sense.

Thanks I try as I believe we are all here to help each other succeed. But stick around and participate on this site and you will find there are a few precious petals.

The FX market as you probably already know does not have a Central Exchange and so its a bit of a hit and miss on getting good fills. But that’s why a No Dealing Desk is best as the trade entry and exit are filled by the best possible price available from multiple banks at that time.

Unlike the futures market that has to go through a clearing house, IE CBOT ot CME and that is the best and fairest way to trade. I prefer to trade currencies and other instruments on the futures market rather than the spot FX market.

Cheers

Blackduck

1 Like

I think NDD brokers are far better than Dealing desk brokers. For the simple reason that they are trustworthy, being on your side of the trade. Market makers on the other hand will profit more from your losses. That’s why I have always stuck to non dealing desk brokers like Turnkey Forex, Oanda FXCM and XM.

1 Like

It’s a big no for my side, if I talk about Desk Dealing brokers. I always prefer settling down for ECN/STP brokers for my trade fulfillment. ECN brokers are the no desk dealing brokers that offer you with the fastest execution model, reasonable pricing, and more liquidity.

I use FxView, Pepperstone, and XM as they offer the most progressive technologies to trade with maximum leverage of 1:400. If you feel right, try giving them a shot and do share your experience with them.

1 Like

I don’t think XM is NDD, they act aggressively like Market Markers. I did not trade more than three months with it. I am not saying they are a bad broker. I was not comfortable with their price chart, execution delays and slippage. Maybe it was not suited for scalping. Trading with Forexchief made me realize the difference because with this one, execution is in faster and less slippage, which is good for scalping.

2 Likes

I personally prefer dealing with desk brokers like Oanda,Turnkey forex, FXCM, XTB. There are plenty of good options. They don’t generally require liquidity from outside, so the trades are more safe. Plus non dealing desk brokers will not be able to give you low spreads, so that’s a big disadvantage with them.

1 Like

I never trust the market makers. I think they are on the other side of the trade. I always go for dealing desk brokers like Turnkey forex, XTB, Oanda, FXCM. They can offer you much lower spreads that non-dealing desk brokers can’t.