spreads. A dealing desk Forex broker, also known as a market maker, is a broker that takes the other side of a clients trades, by setting the bid and ask price and waiting for a trader who would like to take advantage of these set terms. . Dealing desk brokers profit by buying at lower prices and selling at higher prices, and by taking advantage of the spreads between the bid and ask price. . Same as the normal STP brokers, they also charge small commissions on the spread they get. Dealing Desk vs No Dealing Desk Forex Broker (Comparison). Simply a bridge between client and liquidity provider. This is one of the main advantages over the traditional dealing desk model. Want to see how eToro stacks up against UFX and XTB? But as time has gone on, a few bad apples have given the concept of the dealing desk a very bad name and traders are starting to demand at the very least automated trading, if not anonymous and ECN trading.
If you think about this, it can be a significant conflict of interest. Forex brokers offering STP system route the orders of their clients directly to their liquidity providers who have access to the real-time interbank market. Liquidity Provider C: Currency Pair: EUR/USD, Bid Price:.1252, Ask Price:.1254.
Those participants could be banks, hedge funds, retail traders, and even other brokers. By definition, a dealing desk broker is a type of broker who takes the other side of their clients trades, by fixing the bid and ask price and waiting for a trader who would place an order with their setup. No Dealing Desk STP brokers usually work with many liquidity providers, with each provider"ng their own bid and ask prices.
It is up to you bitcoin value against dollar to be diligent, and look up the broker's record with such agencies as the cftc and FSA. Variable spreads, variable spreads and/or commission fees, order Execution. Dealing Desk or No Dealing Desk: Final Thoughts Which type of broker you choose completely depends on your trading style. How Dealing Desk Brokers Work? See our guide on calculating pip and pipette, so, when you decide to buy/sell 1 Lot (100,000 units) of EUR/USD.1253/1.1251, your order will be received by your broker and then routed to either Liquidity Provider B. But they may not fill all the orders, depending on their risk management policies. But dont be scared.
A dealing desk broker? Or a no dealing desk broker?
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