| No commission and tight spreads<\/td> | <\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div>\n\n\nWhat is a No Dealing Desk Broker?<\/h2>\n\n\n\nNDD brokers simply connect two trading parties. These brokers do not pass your orders through a Dealing Desk. This means that they never take the other side of any trade.<\/p>\n\n\n\n Forex traders that use NDD brokers will buy and sell based on current market prices. These prices are not determined by the broker.<\/p>\n\n\n\n NDDs make a profit either by charging a small commission fee on each trade or by increasing spreads to markup prices.<\/p>\n\n\n\n What is A Dealing Desk Broker?<\/h2>\n\n\n\nDealing Desk (DD) brokers create market prices for their clients. This means that they will often take the other side of your trade. These brokers are also called Market Makers.<\/p>\n\n\n\n DD brokers give you a sell and buy quote. This means that they are filling both buy and sell orders. They are indifferent to your decisions as an individual trader.<\/p>\n\n\n\n After placing an order, your broker will first try to find a sell order mather from another client. If there are no matching orders, then they will take the opposite position on your trade.<\/p>\n\n\n\n No Dealing Desk (NDD) vs Dealing Desk (DD) brokers<\/h2>\n\n\n\nThere are some key differences between these two brokers to understand before you choose a Forex broker.<\/p>\n\n\n\n The biggest difference is the spreads. DD brokers have fixed spreads, while NDD brokers have variable spreads that are determined by the market. <\/p>\n\n\n\n DD brokers give you artificial trade quotes, but NDD brokers take prices from liquidity providers. This means that an NDD broker gives you direct access to cheaper real market prices.<\/p>\n\n\n\n DD brokers often take the opposite side of your trade. On the other hand, NDD brokers are simply a connecting bridge between client and liquidity provider.<\/p>\n\n\n\n With a DD broker, your trade orders are filled on a discretionary basis. This differs from an NDD broker, where you have automatic order execution with no re-quotes.<\/p>\n\n\n\n STP and ECN Explained<\/h2>\n\n\n\nNDD can be further broken up into Straight Through Processing (STP) and Electronic Communication Network (ECN) brokers.<\/p>\n\n\n\n An STP broker simply routes your trade orders through a liquidity provider with access to the interbank market. Each provider has its own price quote that your NDD broker will add a small markup to. This explains why STP brokers have variable spreads.<\/p>\n\n\n\n An ECN broker allows market participants to trade directly with each other. These participants include other retail traders, banks, institutions, and hedge funds.<\/p>\n\n\n\n True ECN brokers will give you a full view of where buy and sell orders are. This allows you to gauge how the current market is positioned. ECN brokers are usually compensated through small commissions instead of earning from spreads or markups.<\/p>\n\n\n\n Pros and Cons<\/h2>\n\n\n\nThere are several pros and cons to NDD Forex brokers to be aware of because starting your trading journey. <\/p>\n\n\n\n The main advantage of an NDD broker is that you have access to real market prices with lower spreads. You also get a more reliable network and faster trade execution with NDD accounts. Trading with an NDD broker assures the trader that their broker has no conflict of interest with their trades.<\/p>\n\n\n\n A downside to using NDD brokers is that you won\u2019t always be guaranteed to fill your order. This mainly applies during non-liquid market conditions. Some NDD brokers will have variable spreads that are higher during unstable periods.<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":504949,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_important_terms":"","inline_featured_image":false,"_uag_custom_page_level_css":"","ub_ctt_via":"","advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[13],"tags":[],"table_tags":[],"acf":[],"featured_image_src":"https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers.jpg","author_info":{"display_name":"Ziga Breznik","author_link":"https:\/\/www.publicfinanceinternational.org\/authors\/"},"author_meta":{"display_name":"Ziga Breznik","author_link":"https:\/\/www.publicfinanceinternational.org\/authors\/"},"featured_img":"https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers-300x169.jpg","uagb_featured_image_src":{"full":["https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers.jpg",1200,675,false],"thumbnail":["https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers-150x150.jpg",150,150,true],"medium":["https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers-300x169.jpg",300,169,true],"medium_large":["https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers-768x432.jpg",768,432,true],"large":["https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers-1024x576.jpg",1024,576,true],"1536x1536":["https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers.jpg",1200,675,false],"2048x2048":["https:\/\/www.publicfinanceinternational.org\/wp-content\/uploads\/no-dealing-desk-forex-brokers.jpg",1200,675,false]},"uagb_author_info":{"display_name":"Ziga Breznik","author_link":"https:\/\/www.publicfinanceinternational.org\/authors\/"},"uagb_comment_info":0,"uagb_excerpt":null,"coauthors":[],"tax_additional":{"categories":{"linked":["Trading Platforms<\/a>"],"unlinked":["Trading Platforms<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 1 year ago","modified":"Updated 8 months ago"},"absolute_dates":{"created":"Posted on January 4, 2023","modified":"Updated on July 26, 2023"},"absolute_dates_time":{"created":"Posted on January 4, 2023 12:29 am","modified":"Updated on July 26, 2023 8:43 am"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/posts\/504943"}],"collection":[{"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/comments?post=504943"}],"version-history":[{"count":6,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/posts\/504943\/revisions"}],"predecessor-version":[{"id":512992,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/posts\/504943\/revisions\/512992"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/media\/504949"}],"wp:attachment":[{"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/media?parent=504943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/categories?post=504943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/tags?post=504943"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/www.publicfinanceinternational.org\/wp-json\/wp\/v2\/table_tags?post=504943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |
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