Help Me Out

So… I’ve tried several MM brokers and recently tried a few ECN brokers. Just trying to get a little experience with everything. However, there is one type of broker that I’m still confused about. Can somebody tell me why it might be better to go with a non dealing desk MM broker than a regular MM broker? Do non DD brokers lock out people who trade on news releases?

The primary advantage to using a non-deal desk broker is that they pass through rates from the market (generally from a collection of other brokers and dealers - and in some cases from their own customers as well) and don’t provide their own. As such, there is no potential issue that could come about as the result of price manipulation by a market maker (dealing desk broker).

They will simply not fill any positions they see fit. A deal desk is a professional on a desk who can decide when and when not to sell.

At this point most have moved to completely automated systems - so there isn’t some guy (or guys) at a desk anymore.