Dealing vs No Dealing desk

Dealing vs No Dealing desk

Hi there and welcome again,

I hope your all well. We looked at the difference between dealing desk and no dealing desk brokers. If you think again I’m high on some very cheap drugs and talking gibberish please refer back to the article TYPES OF FOREX BROKERS. Here I demystified as promised how the Forex brokers are recognized and categorized. Knowing the difference will help you understand which one to choose and how your going to make money trading Forex onward. So you can now get to know why brokers aren’t charities, how they make their money and why you need to read this post as we’ll be highlighting the difference between the two brokers and helping you figure out which one to choose from.

So we’ll begin by saying that no broker type is better than the other it all depends on you as a trader.  Either tighter spreads and pay a commission like day traders/scalpers who make small commissions or wider spreads for long term traders where the spreads are insignificant. So we’ll look at a summary of the various brokers so as to make a decision on how you’ll trade moving forward. Remember to keep the points below in mind.

  • Dealing Desks (Market Makers) have fixed spreads, take the opposite side of your trades, artificial quotes (based on their spreads) and orders are filled on a discretionary basis.
  • No dealing desk (STP) have mostly variable spreads, they are simply the bridge between client and liquidity provider, prices come straight from liquidity providers and automatic execution (no requites).
  • No dealing desk (STP+ECN) have; variable spreads/commission fees, a bridge between clients and liquidity providers/other participants. Price comes from liquidity providers and other ECN participants, automatic no re-quotes and the display the market(depth of market or liquidity information).

Against popular belief Forex brokers aren’t as evil as people think they just provide a platform the rest is up to you. If they didn’t want to do business with you and you only lost your money they would ultimately lose customers. By now you should know business wants to lose customers because its much harder to get one.

If you look at the ideal client of a dealing desk broker you will see its someone who breaks even not winning or losing. So if you aren’t breaking even or winning and only losing you end up deciding to stop trading and take away their opportunity to trade. Do they make money when you win or lose? yes but without you they cant make money so they make it as fair and as easy for you to win not just break even. Note this doesn’t mean they’ll rig the system for you only create a fair opportunity for you.


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