Non-dealing Desk Brokers?

Pursuant to my earlier message ‘What is the point of a ‘Stop’ . . .’ I need to ask this question:

I have had a look around for some non-dealing desk brokers and found a couple.

My question is: Why do ANY of us use dealing desk brokers? Why don’t we ALL use non-dealing desk brokers?

I mean to say it really does not look like brokers work for us (not my current one at least) - it seems that they work against us.

What I am trying to find out is what are the pro’s and con’s of using a non-dealing desk broker as opposed to a dealing desk broker?

Just for clarity sake I am assuming (from my limited knowledge) that a non-dealing desk broker has a direct connection to the banks or whatever.

If this is not the case then can someone please tell me what type of system you need in place to have a direct connection to the banks or something like that i.e. NO PEOPLE INVOLVED to make decisions on your behalf i.e. DIRECT LINK BETWEEN MY TRADING PLATFORM AND THE BANKS?



Yeah, pretty much your right. The thing about non-dealing desk is that the spreads change since banks are competing to get the best quotes, which can have low spreads during volatile times. However during non-volatile times they get pretty wide, which is sometimes when I trade, so for one that is why I didn’t do it. Two, the fact that it is instant execution is also appealing, if you trade the news. However there is also slippage, which occurs since one person might have a different quote than another when they bought it at the same time (I was told it doesn’t happen often, but usually around news trading times.) What you could do to is they have that chat button with the brokers, just ask them a bunch of questions on it, if you still don’t understand. If you get the right person you should be fine, anyways that’s what I did. The only difference I saw in it is that instead of both the buy and sell changing simultaneously,both the buy and sell changes on their own. Oh yeah, and you can set an entry order like 2 pips or in the spread or whatever unlike the dealing desk which you need to set like ten pips from where it is. I don’t know how wide the stops get though, I asked multiple people and got nothing. Hope this helps, Best to ya!

Well - I think it is time for me to try one of these non-dealing desk brokers.

I’ve just had it out with a company called GCI Trading and I can tell you without a doubt that they work against you and nor for you.

I mean I have been trading the whole day today and would be making a huge profit IF I could only close my positions at the closing price being displayed BUT I CAN’T - EVERY SINGLE ORDER I TRY AND CLOSE THAT IS PROFITABLE IS REQUOTED WITHOUT EXECEPTION AND THE PRICE IS, GUESS WHAT, ALWAYS LOWER I.E. I WOULD HAVE TO TAKE A LOSS IF I ACCEPTED THE PRICE OFFERED.

I mean - is this standard practice?

Good question - if you make a profit - who is paying you that profit? The dealer? If that money is coming out of the dealer then that sure would explain why I’m having this problem.



If you have any questions about NDD brokers that you can’t get an answer to here (not saying that you won’t, but just in case), a useful source of information is the Non-dealing desk forum.

the EFXgroup web site, they have a great comparison between NDD and FCMs. I see that Jleblang has a place where you can ask questions about their company. The EFXgroup company claims to have ECNs to various banks throughout the world, and it shows in their low spreads cause they are all competing for your business.

I hate to say this, but if you are a retail trader working with a broker/dealer it doesn’t matter which kind you go with in regards to inter-bank market access. You don’t have any. The only way to get direct access to that market is to actually deal directly with one of the banks and realistically that’s only going to happen if your position sizes have at least 7 digits.

Retail brokers aggregate the positions of their customers and offset the aggregates in the market. They do not deal our puny little trades (relatively speaking) straight through.