Dealing Desks (DD) vs No Dealing Desk (NDD) Brokers

To Clarify the differences and terminology of the different Broker types and trading conditions they provide traders.
If you been reading about forex trading you must have come across the acronyms DD, STP, DMA, NDD & MM. I’ll try clarify the differences and try to put something to remember each and their meanings.

Keynote:
A Dealing Desk (DD) broker, also known as a Market Maker (MM)
A No Dealing Desk (NDD) is also referred to as Straight Through Processing (STP) or Direct Market Access (DMA) and closely related to an ECN.

Dealing Desks (DD)

A Dealing Desk (DD) broker, also known as a “market maker,” is a type of forex broker that acts as a counterparty to their clients‘ trades. This means that when a trader places a trade with a DD broker, the broker is essentially taking the other side of the trade.

Market makers are also known as dealing desk brokers. This is due to the fact that they generate revenue through spreads and providing liquidity to their clients (You! ), typically by taking the opposite side of their trades.

In other words, they create a market by countertrading your buy and sell orders.

There are trading desks that may fill your orders at their discretion based on whether or not their own opposing position could be advantageous for them, but this is not always the case.

Dealing Desks (DD) bid/ask quotes

Ideally, market makers adhere to their stated bid/ask quotes and fill client orders regardless of the performance of the positions.

Before accepting a countertrade or passing it on to a liquidity provider, dealing desk brokers typically attempt to obtain a matching long or short order from another client. A liquidity provider is typically a large business that can quickly purchase or sell a financial asset.

As a result, they are able to limit risks by profiting from the spread rather of taking the opposing side of the client’s transaction.

How do Dealing Desks (DD) Brokers Make Money?

DD brokers make money by taking the opposite side of a client’s trade and earning the spread, or the difference between the bid and ask prices. They also have the ability to adjust the bid-ask spread in order to make a profit.

DD brokers are able to provide fixed spreads and guaranteed stop loss orders, which some traders may find more attractive than the variable spreads and potential slippage that can occur with an ECN or NDD broker.

However, this also means that the trader is not trading on the true market price and the broker has the ability to manipulate the price for their advantage.

To Conclude about Dealing Desks (DD) Brokers

DD brokers act as a counterparty to the trades, meaning that they are on the opposite side of the trade from their clients.

They make money from the spread and have the ability to adjust the bid-ask spread, which can be an advantage or disadvantage depending on the trader’s needs and preferences.

No Dealing Desk (NDD)

A No Dealing Desk (NDD) is a type of forex trading execution model used by some brokers. It is also referred to as Straight Through Processing (STP) or “Direct Market Access” (DMA).

No dealing desk brokers, as you may have guessed, do not forward their clients’ orders to a market maker or liquidity provider.
A straight-through-processing (STP) system or an Electronic Communications Network may be utilized to join two counterparties (ECN).

A STP broker routes client orders through a number of liquidity providers with access to the interbank market.

Typically, each supplier has its own set of bid/ask rates, and the STP system evaluates these prices from best to worst before the NDD broker adds a modest (usually less than a pip) markup to earn a profit. This is why the majority of STP brokers utilize variable spreads.

Meanwhile, an ECN broker facilitates trading amongst market participants. Other retail traders, hedge funds, institutions, banks, and brokers may be included among these participants.

True ECN brokers also provide a comprehensive view of where the buy and sell orders of other market participants are, allowing their clients to measure market liquidity and position.

How do No Dealing Desks (NDD) Brokers Make Money?

Typically, ECN brokers or NDD are compensated through tiny commissions rather than through spreads or markups.

In an NDD model, the broker does not act as a counterparty to the trader’s trades. Instead, the broker’s role is to connect traders with the interbank market, where they can trade directly with other market participants such as banks and other traders.

In NDD model, the broker does not take the other side of the trade, so there is no conflict of interest. It eliminates the risk of re-quotes, slippage, and other issues that can arise when a broker is acting as a counterparty.

It also allows for faster trade execution and more transparent pricing, since the trader is seeing the true market price.

NDD forex brokers typically charge a commission or spread markup for their services, rather than making money on the spread or by taking the other side of the trade.

This can make them more suitable for experienced traders who want more control over their trades and access to the raw market prices.

To Conclude about No Dealing Desk (NDD) Brokers

The orders of clients of No Dealing Desk (NDD) brokers are NOT routed through a Dealing Desk. Instead, NDD forex brokers transmit buy and sell orders to the currency market immediately (via liquidity providers, banks, other brokers, etc).

Recommended Brokers

Take the guesswork out of choosing a Forex broker by selecting one of our recommended options. I have thoroughly vetted each broker to ensure they meet the highest standards of security, reliability, and user experience. Don’t miss out on the opportunity to trade with confidence and success.

Broker

Regulators

Leverage

Spreads

Trading Acc.

Instruments

Connect

FP Markets 

ASIC, CySEC

Up to 1:500*

From 0.0 pips

Broker Type:
STP | ECN | DMA 2 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, ETFs Crypto, Bonds

Eightcap

ASIC, VFSC

 Up to 1:500 

From 0.0 pips

Broker Type:
STP | ECN
 2 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

IC Markets

AFSL, ASIC, CySEC, FSA

Up to 1:500

From 0 pips

Broker Type:
ECN
6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

Axi 

ASIC,FCA, DFSA, FSC

Up to 1:500

From 0 - 0.4 pips

Broker Type:
STP | ECN
 3 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

InstaForex

CySEC, FSC BVI, FSC

Up to 1:1000

From 0 - 7 pips

Broker Type:
MM | Binary
 6 Accounts

Forex, Indices,
Commodities,
Metals, Energies, Shares, Crypto

NordFX

VFSC

Up to 1:1000

Floating spread from 0.9 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

FXOpen 

ASIC, FCA

Up to 1:500*

Floating spread from 0 pips

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

Vantagemarkets

CIMA, ASIC, FCA

Up to 1:500*

From 0.4 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

RoboForex

IFSC

Up to 1:2000

From 0.0 pips

Broker Type:
MM | STP | ECN
5 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
ETFs, Shares, Crypto

Exness

FCA, CySEC, FSA, CBCS, FSC, FSCA

Up to 1:3000

From 1 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

FBS

CySEC, FSC, FSCA, ASIC

Up to 1:3000 

From 1 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

For More Clarity on the Different Types of Brokers

I have created another article on the differences of the ECN Vs STP Vs Market Makers Vs DMA Broker types. Continue reading the full article and the Trading Accounts of a standard vs an STP trading account.

Recommended Brokers

Take the guesswork out of choosing a Forex broker by selecting one of our recommended options. I have thoroughly vetted each broker to ensure they meet the highest standards of security, reliability, and user experience. Don’t miss out on the opportunity to trade with confidence and success.
Choose one of our recommended Forex brokers today!

Exness

Since 2008

Offices:

UK, Cyprus, Seychelles

Exness

Minimum Deposit:Standard; Cent; Plus: $1 | Raw Spread, Zero, Pro:$200
Account currency:USD
Leverage:From 1:100 up to 1:2000
Accounts:Standard, Standard Cent, Standard Plus, Raw Spread, Zero, Pro
Instruments Offered:Forex, Indices, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:MT4, MT5, WebTrader, Mobile, Free VPS hosting
Regulation:FCA, CySEC, FSA, CBCS, FSC,  FSCA
Spreads:Standard; Cent: from 0.3 pips,
Standard Plus: from 1 pip
Pro: from 0.1 pips,
Raw spread; Zero: from 0 pips,
Visit BrokerBroker Review

AXI

Since: 2007

Offices:

UK, Australia, UAE, Saint Vincent & the Grenadines

 AXI

Minimum Deposit:$1
Account currency:AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, USD
Leverage:Up to 1:500
Accounts:Standard, Pro, Elite
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform: MT4, PsyQuation with Axi,  WebTrader, VPS hosting
Regulation:ASIC,FCA, DFSA, FSC
SpreadsStandard: from 0.4 pip, Pro: from 0 pip
Visit BrokerBroker Review

InstaForex

Since: 2007

Offices:

Cyprus, St.Vincent & the Grenadines, British Virgin Isles

InstaForex

Minimum Deposit:From $1
Account currency:EUR, USD
Leverage:From 1:1 up to 1:1000
Accounts:Demo, Insta.Standard, Insta.Eurica, Cent.Standard, Cent.Eurica, PAMM
Instruments Offered:
Forex, Indices, Futures, Options, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:МТ4, МТ5, InstaTrader, WebTrader, Multiterminal, Mobile Trading, VPS hosting
Regulation:CySEC, FSC BVI, FSC
Spreads:0 pips: Insta.Eurica and Cent.Eurica;
3–7 pips: Insta.Standard and Cent.Standard
Visit BrokerBroker Review

EightCap

Since: 2009

Offices:

Australia, Vanuatu

EIGHTCAP

Minimum Deposit:$100
Account currency:AUD, USD, GBP, NZD, SGD, EUR
Leverage:1:30 for Australian clients
1:500 for Non-AU clients
Accounts:Standard Account, Raw Account
Instruments Offered:
Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:MT4, MT5, Mobile, VPS hosting
Regulation:ASIC, VFSC
Spreads:From 0.0 pips
Visit BrokerBroker Review

IC Markets

Since: 2007

Offices:

Australia, Cyprus, Seychelles

IC MARKETS

Minimum Deposit:200 US dollars
Account currency:USD, AUD, GBP, CHF, JPY, NZD, SGD, CAD, HKD, BTC
Leverage:From 1:1 to 1:500
Accounts:Demo, Raw Spread, cTrader, Standard, Islamic, PAMM
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Bonds Cryptocurrencies
Trading Platform:cTrader, MT4, MT5, WebTrader, VPS hosting
Regulation:AFSL, ASIC, CySEC, FSA
SpreadsFrom 0
Visit BrokerBroker Review

FBS

Since: 2009

Offices:

Cyprus, Belize

FBS

Minimum Deposit:$1 , €10
Account currency:Euro
Leverage:1:3000 
Accounts:Standard Account, Cent Account, Demo Standard Account, Demo Cent
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:MT4, MT5, Multiterminal, WebTrader, FBS Trader, VPS hosting
Regulation:CySEC, FSC, FSCA, ASIC
Spreads:From 1 pip
Visit BrokerBroker Review