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    Forex Broker Types: Dealing Desk or No Dealing Desk

    Mushtaq Ahmed

    Mushtaq Ahmed


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      Any trader who wishes to succeed in Forex trading must make the right choice when choosing a broker. We’ll be looking at two types of Forex brokers, Dealing Desk and No Dealing Desk brokers. Learn which Forex broker is most suitable for your trading objectives and how they impact your success in the currency markets.

      Dealing Desk or No Dealing Desk

      If used correctly, the foreign exchange market (Forex), is an extraordinary trading platform with exceptional potential for success. The key to successful trading is choosing the right broker. There are many types of brokers available. Two stand out among them: Dealing Desk DD and No Dealing Desk NDD. This blog will discuss the differences between these types of brokers and help you choose which one is best for your trading needs.

      Dealing Desk brokers are often market makers and the counterparty for each trade. Depending on the circumstances, the DD broker could trade against you. NDD brokers on the other side, however, don’t act as market makers. Instead, they act as intermediaries, offering greater anonymity and more control. They source prices from multiple liquidity sources, which allows traders to have more options and better pricing. Each broker type has its pros and cons. It is ultimately up to you which broker you prefer.

      Forex brokers: Introduction

      You will need to choose a broker that suits your trading style before you can start forex trading. You will need to decide whether you want to trade with an NDD broker or a dealing desk.

      Market makers are market brokers, which is because they “make the market” for their clients. They can quote buy and sell currencies pairs, and they make money from the spread. NDD brokers may offer lower spreads, but dealing desk brokers may trade against clients.

      NDD brokers connect clients with the interbank market, where large banks trade with one another. NDD brokers are not allowed to trade against clients. They also have higher spreads than dealing desk brokers. NDD brokers might offer commission-based pricing, which can be cheaper than dealer spreads.

      Which broker type is best for you? A dealing desk broker is a good choice for beginners. This will allow you to get comfortable with trading spreads. After you have gained some experience, you may want to move to an NDD broker to access tighter spreads as well as lower commissions.

      What is a Dealing Desk broker?

      A dealing desk broker, a type of forex broker, will take the opposite side of your trade. The broker purchases currency pairs from you and sells them to you. Dealing desk brokers earn their money by charging spreads on every trade. A commission may be charged for each trade.

      What is the Work of Dealing Desk Brokers?

      Market makers, also known as dealing desk brokers, act as counterparts to clients’ trades. They take the opposite side of clients’ trades. Dealing desk brokers make money by making money from clients who lose money. They also can hedge against losing trades and can control risk. The broker still earns money from the spread if a client wins, but must now pay any winnings to them.

      Because they make money from their client’s losses, dealing desk brokers often offer lower spreads than other brokers. Dealing desk brokers can manipulate prices and re-quote orders to make more profit for their clients. A dealing desk broker may have lower spreads but you could end up paying more for commissions or fees.

      Market makers trade against clients, but no dealing desk brokers (NDDs) do not trade against them. NDD instead route clients’ orders to liquidity providers like banks and large institutional traders. These liquidity providers fulfil orders at the lowest price and the NDD only receives a small commission. NDDs are not able to trade against clients and can therefore offer tighter spreads than market makers.

      What is a No-Dealing Desk Broker?

      A No Dealing Desk broker (NDD) is a forex broker that doesn’t trade against clients. NDD brokers have access to the interbank currency market where banks and financial institutions trade currencies. NDD brokers usually charge a commission for each trade or spread.

      Brokers who are not dealing desk agents may also be known as Straight Through Processing brokers (STP).

      Comparison of Brokers with Dealing Desks vs. Brokers without Dealing Desks: Pros and cons

      There are two types of forex brokers: no dealing desk (NDD) and dealing desk (DD). Each type has its pros and cons so it is important to know the differences before you choose a broker.

      A market maker who takes the opposite side of your trade is called a dealing desk broker. This means that they are buying and selling the currency pair you trade, in opposition to you. Spread is the difference between the ask and bid price. This is how they make their money.

      A DD broker can offer you immediate liquidity at the most competitive price. They are constantly quoting the market prices so they know what’s in stock.

      There are however some drawbacks. First, DD brokers may trade against you. This means that they might not always be on your side. DD brokers may not always offer the best price, so your order might not be filled at the highest price. Lastly, some DD brokers may ask for a minimum trade size or deposit.

      Brokers that are not dealing desks (NDD) don’t handle the opposite side of your trade. They route your order to one of the liquidity providers on the market. These liquidity providers can be banks, hedge funds or other NDD brokers. This model has the advantage that NDD brokers cannot trade against you. BlackBull Markets is one of the BEST NDD brokers in the market today.

      Here are some tips to help you find the right forex broker

      You must choose a broker before you can start trading on the foreign exchange market. Different traders have different needs, so not all brokers are the same. Consider these things when searching for a broker:

      • Type of broker: Dealing desk, no dealing desk?-The broker’s size: Does the broker have enough liquidity to provide the services that you require?
      • The broker’s location: Are you looking for a local or international broker?
      • The regulation and supervision of brokers: Does the broker have to be regulated by major financial regulators?
      • How much are spreads and commissions charged by brokers?
      • The broker’s platform: Does the broker offer a trading platform that meets your needs?
      • The broker’s customer service: Are they available 24 hours a day? Are they responsive and helpful?

      These questions will help narrow down your options and help you find the forex broker that’s right for you.


      It is important to know the differences between Forex brokers. It is important to know which broker is right for you to make informed decisions about trading on the foreign exchange market. If you require extra assistance with pricing or execution, dealing desk brokers can be a good choice. However, no-dealing desk brokers may offer greater freedom and autonomy, but less customer service. It all comes down to your preferences and needs when choosing between these types of Forex brokers.


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