Non Dealing Desk Forex Brokers

Non Dealing Desk Forex Brokers

Non Dealing Desk Forex Brokers Comparison Table
Online BrokerMinimum DepositTrading Platforms
$200MT4, MT5, cTrader
$100MT4, JForex
$200MT4, MT5
$200MT4, MT5, cTrader

Non Dealing Desk Forex Brokers

A trader can place orders with a broker which acts as market maker setting the spreads for Forex pairs for their pool of traders. It is also possible at some brokers to bypass any broker dealing desk and place orders with the liquidity providers the broker may use to access the Forex market.

This isn't exactly cutting out the middle man or woman, as the order still goes though the broker, who typically adds on a commission charge to the spread. Also, the Forex market is decentralised, but there are major players in it who set baseline spreads because they trade very large volumes.

These kinds of costs are available to the trader in the form of very low variable spreads for the most liquid Forex pairs, sometimes as low as zero. Hence at a broker which lets the trader access liquidity providers (outside of itself), very low spreads may be seen for pairs such as EUR/USD, GBP/USD and other major pairs.

However the addition of the commission charge increases the cost, as the total cost in the spread plus the commission charge. Thus the cost of a pair which may have a spread of zero is not zero, it is the commission charge. Additionally, these spreads are variable, thus a minimum spread of zero can be higher depending on a number of factors. However the most liquid pairs may also have very low average spreads.

This is termed non or no dealing desk trading. It allows the trader to access liquidity providers and also typically infrastructure to ensure high speed order processing, for example co-locating the broker's servers with the servers of liquidity providers at data centers.

Because the broker's dealing desk either does not exist or does not intervene, then styles which a dealing desk broker may not support may be available to the trader. This can include automated trading as well as styles used by discretionary traders.

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