You may have heard of the terms Dealing Desk (DD) and No Dealing Desk (NDD) brokerage, and you may be wondering which one is best for you. There are some important differences between the two, so it's important to know what they are and how they are different. Then you'll know which type of brokerage you need.

Non-Dealing Desk Brokers

If you have been involved in Forex trading for any length of time, you have probably noticed that there are two types of brokers in the marketplace. One type of broker is known as a Dealing Desk broker. This kind of broker acts as an intermediary between you and the liquidity providers in the market. It offers you a range of buy and sell quotes.

A second type of broker is known as an ECN. This type of broker uses an electronic communication network to give you access to the markets. These brokers also allow you to trade in nano lots.

Unlike a Dealing Desk broker, an ECN broker doesn't act as a counterparty, but instead seeks out a counterparty for your customer transactions. Their aim is to match your buy and sell orders to the best possible price.

Dealing Desk Brokers vs No Dealing Desk Brokers

Dealing Desk (DD) and No Dealing Desk (NDD) brokers are two types of Forex brokers. Their differences are based on how the orders are handled. For example, DD brokers will usually publish fixed spreads, while NDD brokers will provide variable spreads.

A Dealing Desk (DD) broker is a market maker broker. Its aim is to offer the most competitive prices to its clients. However, there are many factors to consider before choosing a DD broker. One important factor is regulation. If the broker is regulated, the trader can be sure that it is independent.

In contrast, No Dealing Desk (NDD) brokers do not deal directly with the trades. Instead, they use an ECN system, a trading platform that connects traders with liquidity providers. When a trade is placed, the broker matches it with other clients in the underlying market.

Market makers vs No Dealing Desk Brokers

Market makers are brokers who act as a counterparty to your trade. They take the opposite side of your trade, and then make a profit by using spreads to offset their costs. You pay them a commission for their services.

If you are interested in trading in the interbank market, you may be wondering whether a broker who deals as a market maker is better than a no dealing desk broker. The answer depends on your needs.

The best way to determine what type of broker you should use is to evaluate your needs and the type of trader you are. For example, a day trader will probably prefer a no dealing desk broker, whereas a long-term investor will likely be satisfied with a market maker.

Pricing

The pricing of DD brokerage and a corresponding NDD counterparty can be quite a bit of a mystery to a novice trader. One of the better questions to ask your DD brokerage tasked with resolving your query is, what are the best DD and NDD solutions available? In short, the answer to which DD and NDD solution is the best for your individual trading needs will vary from one broker to the next. For example, one broker might give you the best DD and NDD solutions for the price of an average bank account, while another might be more expensive than your bank account. Hence, a careful selection of a DD and NDD solution will go a long way towards making you a happy and successful Forex trader.

DD brokerage vs NDD brokerage

If you're thinking about trading in the Forex market, you might wonder what the difference is between DD brokerage vs. NDD brokerage. A broker that uses a no dealing desk (NDD) system will send trade orders directly to the interbank market, but will not re-quote them. The spread will also be different.

Market makers are traders who take on the other side of a trade, taking a commission for the deal and profiting from the spread. They can also offer artificial quotes.

While these brokers accept risk, they try to make trades as efficient as possible. They will attempt to find matching long or short orders from other clients, but they'll also take the opposite position in case a trade goes against them.