- History of Retail Forex Trading
- Forex Broker Types: Dealing Desk and No Dealing Desk
- Dealing Desk vs. No Dealing Desk Forex Brokers
- What is a Spread in Forex Trading?
- 6 Crucial Things to Consider When Choosing a Forex Broker
- Beware of Forex Bucket Shops
- How to Protect Yourself against Forex Broker Scams
- How to Open a Forex Trading Account
Three Types of Analysis
Types of Charts
Dealing Desk vs. No Dealing Desk Forex Brokers
Forex market place is filled with many types of brokers. These forex (FX) brokers
are not like brokers from other trading markets who advertise themselves on ‘I am
better than others’ philosophy’. At FX, every broker offers a particular type of
service which broadly depends on what kind of trading a trader wants.
The selection of a broker can be based on whether you are looking for a quicker
and tighter spread with small commissions per trade or want to indulge in a long
time run with broader spreads with no commissions. Day traders are most likely to
pick a dealing desk broker with fixed spreads whereas position traders pick no
dealing desk broker with variable spreads.
A dealing desk broker operates by taking the opposite side of the client’s trade
while a no dealing desk broker operates by providing a bridge between the client
and liquidity provider (with other participants too in case of STP+ECN).
A DD broker executes the client’s orders on a discretionary basis whereas the
client’s orders are executed automatically with no re-quotes by a no dealing desk
A misconception that is prevalent in the trading world is that every broker seeks to
make a hole in your pocket. Well, it is not true, except for some evil minds that
exist to con people. Most of the Forex brokers want their customers to have a
successful go at Forex to continue their business with them.
Keeping all the above factors in mind and the style of trading you prefer, you
should choose the broker to achieve your trading goals.