In the section on choosing a broker it says that one of the things to look at is whether the broker is a dealing desk broker or a non dealing desk broker. Can anyone explain the difference please.
If i understand correctly,
A dealing desk broker is one who will take an opposite trade to fill your order (market maker),
A non dealing desk broker doesn’t do that, but forwards your order to be matched in the market (intermediary)
can someone confirm, because i m not sure if this is the right definition
Dealing desk broker provides quotes in which market orders are filled that is they fill both buy and sell orders of their clients.They earn from spread. While no dealing desk broker pass their client orders straight to the market. They earn from commission and provide fast execution of trade. Most traders prefer NDD broker because they will not trade against you. Profiforex is an example of no dealing desk broker that i trade with providing both STP and ECN account.
FXCM also offers both options, dealing desk and NDD.
Thanks for your help.
Thanks for your help.
Thank you.