Dealing Desk Broker or No-Dealing Desk Broker; which is best?
Sep 21, 2017 at 7:11 am #1009
I have often wondered which is the best Forex broker especially for the Forex Beginners. Because, as you will all agree with me, Forex brokers are different especially when it comes to spreads, order execution, swaps and commissions.
Mainly, I have come across two types of Forex brokers: the Dealing Desk Brokers and the No-Dealing Desk Brokers.
From my understanding, the No-Dealing Desk Brokers have instant execution rates of orders while the Dealing Desk Brokers have a bit slower rates of executing orders. It is also arguable that the No-Dealing Desk Brokers offer very small spreads compared to the Dealing Desk Brokers whose spreads vary with the volatility of the market.
In addition, you will also agree with me that the No-Dealing Desk Brokers provide an immediate access to the interbank market. But what does this really mean for the trader? Does the trader benefit in any way by having a direct access to the liquidity providers?
Also from the above, the No-Dealing Desk Brokers seems to be the best type of brokers to go for. But could there be good reasons to make Dealing Desk Brokers a preference to traders?10
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