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TOP FOREX BROKERS REVIEW

THE INTERNET'S MOST COMPREHENSIVE LIST OF ONLINE FOREX BROKERS AND FOREX REVIEWS. 

Forex Broker Types: Dealing Desk and No Dealing Desk

Any wannabe forex trader must pick a broker based on factors like trading style to handle the
forex transactions. The choice of forex broker can affect the transaction fees, dealing spreads
and the quality of service. Essentially there are two kinds of brokers at Forex and they are –
Dealing Desk Brokers –
Considered as ‘market makers’, DD brokers offer a two-sided market and make money through
spreads which are fixed. Via these brokers, you can trade in nano lots making it possible for you
to trade really small sizes. A DD broker accepts the trade from the client, offers quote based on
the price of the underlying market and takes the opposite side of the client’s trade.
Non-Dealing Desk Brokers –
These are the ones who act as a bridge between traders and the Forex market and they don’t
take the opposite side of their clients’ trade. They can either be an STP (Straight Through
Processing) or ECN+STP (Electronic Communication Network + Straight through Processing).
These NDD brokers make money through small commissions from their clients or increase the
spread slightly. The STP brokers have a direct link or the ‘Straight Through Processing System’
which lets them forward their clients’ trades to significant liquidity providers within the
interbank market. The ECN brokers operate by allowing their clients’ orders to communicate
with other participants’ orders through the Electronic Communication Network. These brokers
provide real scenarios and allow their clients to know the depth of the market.

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