The Rise of No Dealing Desk Brokers: An In-depth Exploration

By David Thompson

Sep 01, 2023 10:52 AM EDT

The Rise of No Dealing Desk Brokers: An In-depth Exploration(The Rise of No Dealing Desk Brokers: An In-depth Exploration) (Credit: Getty Image)

In the ever-evolving landscape of the Forex market, the emergence of No Dealing Desk (NDD) brokers has revolutionized the trading experience. These brokers, as the name suggests, operate without a traditional dealing desk, offering numerous advantages over their dealing desk counterparts. In this article, we will delve deep into the world of NDD (No Dealing Desk) brokers and discern why they're fast becoming the preferred choice among traders.

1. Dealing Desk vs. No Dealing Desk: A Distinction

To understand the significance of NDD brokers, it's essential to first comprehend the difference between dealing desk (DD) and NDD setups.

Dealing Desk (Market Makers):

  • Order Execution: Orders are typically executed in-house.

  • Spread: Often provide fixed spreads.

  • Potential Conflict of Interest: May take the opposite side of a trader's order, potentially profiting from their losses.

No Dealing Desk:

  • Order Execution: Directly connected to liquidity providers or interbank networks.

  • Spread: Typically variable, depending on market conditions.

  • Transparent Trading: Since they don't trade against clients, potential conflicts of interest are minimized.

2. The Advantages of NDD Brokers

The rise of NDD brokers can be attributed to the myriad of benefits they offer.

Market Access & Price Transparency:

NDD brokers provide direct access to interbank rates, ensuring more competitive pricing.

Faster Execution:

Without a dealing desk, trade orders are usually processed faster, reducing chances of slippage.

No Requotes:

Trading without a dealing desk usually means no requotes, ensuring traders get the price they see.

3. Types of NDD Brokers: STP and ECN

Delving deeper into the NDD sphere, two predominant types emerge: STP (Straight Through Processing) and ECN (Electronic Communication Network).

STP Brokers:

  • Connection: Directly connect traders with their liquidity providers.

  • Spreads: Typically have variable spreads.

  • No Middleman: Offer a more direct trading process.

ECN Brokers:

  • Networking: Connect traders, banks, and major financial institutions on a shared network.

  • Market Depth: Offer insights into the market's depth and order book.

  • Commissions: Instead of spreads, they often charge a commission on trades.

4. How to Choose the Right NDD Broker

Given the advantages of NDD brokers, the decision to choose one may seem straightforward. However, selecting the best fit requires careful consideration.

  • Regulation: Ensure the broker is regulated by a recognized authority.

  • Liquidity Providers: The more providers a broker has, the better the price offerings.

  • Trading Platform: A user-friendly interface combined with advanced tools enhances the trading experience.

  • Reviews & Reputation: Explore reviews and insights according to and other reputable sources.


The rise of No Dealing Desk brokers is a testament to the Forex market's progression, catering to traders' demands for transparency, speed, and efficiency. While NDD brokers undoubtedly offer a multitude of benefits, it's paramount for traders to conduct their own research and ensure they partner with a broker that aligns with their trading style and goals. The Forex journey, when navigated with informed decisions, can be both rewarding and enlightening.

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