Forex Brokers with a Dealing Desk
Category: Broker Guides | Author: Trading Brokers | Date: July 7, 2026
If you are looking for a forex broker, then you may be weighing up your options between the different types of forex brokers that are available to you. The choice is really between non-dealing desk brokers (NDD) and dealing desk brokers (DD). Both have advantages and disadvantages that we will cover in this guide to help you make an informed decision according to your own preferences.
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Dealing Desk (DD) brokers, also known as Market Makers, act as the counterparty to their clients’ trades, creating the market by setting bid and ask prices. These brokers often offer fixed spreads, faster execution, and can provide liquidity even during volatile conditions. However, they can also have a conflict of interest since they profit when traders lose, and their spreads can be wider compared to Non-Dealing Desk (NDD) brokers. NDD brokers, on the other hand, do not take the other side of trades but instead route orders to liquidity providers, offering tighter spreads and better transparency. They are typically more suitable for experienced traders, especially those who engage in scalping or high-frequency trading. NDD brokers charge commissions and may have variable spreads, but they provide access to raw market data and avoid conflicts of interest. The choice between DD and NDD brokers depends on the trader’s strategy, risk tolerance, and the need for transparency and execution speed.
What is a dealing desk forex broker?
A dealing desk forex broker, also known as a market maker broker, is a type of forex broker that acts as an intermediary between traders and the broader currency market. In this setup, the broker typically takes the other side of a client’s trade. Rather than directly routing orders to external liquidity providers or market participants, the dealing desk broker creates a market for the trader, filling the order with its own inventory of currency pairs or by taking the opposite position. This model contrasts with no dealing desk (NDD) brokers, which do not take the other side of trades and instead route orders directly to the interbank market or other external liquidity providers.
One of the defining features of a dealing desk broker is its control over pricing and execution. Since the broker sets its own bid and ask prices, it can offer tighter spreads and more competitive rates. However, this also means that the broker may be exposed to a conflict of interest: if traders are consistently profitable, the broker could face losses. As such, dealing desk brokers often employ risk management strategies to offset this potential, such as hedging their exposure by placing trades in the interbank market or other venues.
Dealing desk brokers typically offer fixed spreads, where the difference between the buy and sell price remains constant regardless of market conditions. This is in contrast to variable spreads offered by NDD brokers, which can widen or narrow based on market volatility or liquidity. Fixed spreads provide greater certainty for traders about their costs, which is particularly appealing for those who are new to forex trading or who trade in high-frequency strategies. However, the fixed spreads may sometimes be slightly higher than those offered by NDD brokers, as the dealing desk brokers factor in the risk of taking the other side of a trade.
From the perspective of the trader, dealing desk brokers may offer more efficient trade execution, particularly during periods of low liquidity, since they do not rely on external liquidity providers to fill orders. This can result in faster execution times, as the broker does not need to wait for a matching order from the market. Moreover, some dealing desk brokers offer advanced trading platforms with more user-friendly interfaces, additional tools, and educational resources that can assist new traders in navigating the forex market.
However, one of the potential drawbacks of dealing desk brokers is the conflict of interest they create, as the broker profits from the losses of traders. This can sometimes lead to practices where brokers are less inclined to offer favorable conditions to traders who are consistently successful. Some critics argue that this business model could incentivize brokers to create unfavorable conditions for traders, such as slippage or re-quotes during periods of volatility, although not all dealing desk brokers engage in such practices.
In addition, dealing desk brokers are sometimes seen as less transparent than their no dealing desk counterparts, especially in terms of how they manage their liquidity and risk. Traders may not always know exactly how their orders are being filled, which can lead to a lack of trust in the broker’s practices. Some dealing desk brokers, however, go to great lengths to ensure fairness and transparency in their operations, offering detailed information about their liquidity providers, risk management strategies, and the steps they take to minimize conflicts of interest.
Ultimately, the choice between a dealing desk broker and an NDD broker depends on the trader’s preferences, trading style, and goals. While dealing desk brokers can provide benefits such as fixed spreads and more control over order execution, the potential conflicts of interest and lack of transparency can be a downside for some traders. As with any broker, it is important for traders to thoroughly research and consider the business model, regulatory status, and reputation of the dealing desk broker before opening an account.
What is a non-dealing desk forex broker?
A non-dealing desk (NDD) forex broker is a type of forex broker that does not take the other side of its clients’ trades. Instead of acting as a market maker, the NDD broker routes its clients’ orders directly to external liquidity providers such as large banks, institutional investors, or other participants in the interbank market. This creates an environment where the broker does not have a direct interest in whether the trader wins or loses on a trade, as it is simply providing access to the market and earning a commission or spread on the trade execution. The NDD model is generally regarded as more transparent than the dealing desk model, as the broker does not take positions opposite to the trader’s orders.
There are two primary subcategories of NDD brokers: Straight Through Processing (STP) brokers and Electronic Communication Network (ECN) brokers. STP brokers send client orders directly to liquidity providers, typically without involving any intermediary. They act as an automated conduit for the client’s orders to the market, with minimal intervention. ECN brokers, on the other hand, provide access to a network of liquidity providers and allow market participants to directly interact with each other, matching buy and sell orders. ECN brokers tend to offer greater market depth and better pricing transparency, with orders typically filled by a wide range of participants in the network.
One of the main advantages of an NDD broker is the transparency and fairness that it offers to its clients. Since NDD brokers do not have a vested interest in the outcome of a trade, they are often seen as providing a more neutral and impartial environment. Traders can feel more confident that their orders are being executed without manipulation, such as the broker taking the opposite side of a trade. Moreover, since NDD brokers pass orders directly to external liquidity providers, the pricing and execution are generally more in line with actual market conditions. This contrasts with dealing desk brokers, who may set their own prices, which could sometimes be skewed to favor the broker.
In terms of spreads, NDD brokers typically offer variable spreads, which can fluctuate based on market conditions and the liquidity available at any given time. While this means that traders may face wider spreads during periods of low volatility, NDD brokers generally provide more competitive pricing during times of high liquidity. The variable nature of the spread can be beneficial for active traders who are looking for more competitive rates, especially in liquid market conditions, but it can also create unpredictability for traders who prefer the certainty of fixed spreads.
For traders, the execution speed with an NDD broker can be faster than that of dealing desk brokers, particularly for ECN brokers, who offer direct market access. This is a crucial advantage for high-frequency traders or scalpers who require quick execution of their trades to capitalize on small price movements. Since NDD brokers do not interfere with the order flow, they can offer more efficient execution times, particularly during times of high market activity.
A potential downside of using an NDD broker, particularly for ECN accounts, is that they may charge commissions in addition to the spread. While the spreads can be lower than those of dealing desk brokers, the broker might charge a fee for each trade, especially if the broker offers a direct market connection to liquidity providers. For some traders, these commission fees can add up, especially if they are trading frequently. However, many traders who prioritize transparency and direct market access find that the combination of low spreads and commissions from NDD brokers is still more cost-effective compared to the fixed spread model of dealing desk brokers.
Another consideration for traders is the minimum deposit requirement and account size for NDD brokers, particularly ECN brokers. Since these brokers provide access to a wider range of institutional-level liquidity, they often require higher account sizes or impose stricter criteria for traders. This can make NDD brokers less accessible for smaller retail traders who may not meet these requirements.
Additionally, while NDD brokers offer greater transparency, their reliance on external liquidity providers means that trade execution might not always be as smooth in times of extreme market volatility or during news events when liquidity can dry up. In such cases, slippage can occur, meaning that a trader’s order may be filled at a different price than expected, although NDD brokers typically work to minimize this risk by providing access to multiple liquidity sources.
Overall, NDD brokers are often seen as more transparent, fair, and impartial than dealing desk brokers, particularly in terms of order execution and pricing. The absence of conflict of interest allows for a more neutral trading environment, which can be appealing to traders who seek greater market transparency and more competitive pricing. However, potential downsides, such as variable spreads, commissions, and higher minimum deposit requirements, should be considered when choosing an NDD broker. Ultimately, the choice between NDD and dealing desk brokers depends on a trader’s specific needs, trading style, and preferences.
Dealing desk vs non-dealing desk forex brokers
Dealing desk brokers decide the bid and ask price that you will pay on a currency pair. This means that they can set any price that they wish whereas a non-dealing desk broker can give you access to the best prices on the forex market. NDD brokers have deep liquidity pools which reduces slippage and makes sure your trades get executed as fast as possible.
When you trade forex, you will need to pay your broker a spread which is the difference between the bid and ask price. DD brokers spreads tend to be higher but they don’t usually charge you a commission fee. On the other hand, an NDD broker can have spreads from as lows 0.0 pips, but will usually charge an additional commission fee for their service.
Dealing desk forex broker pros & cons
Pros
- No commission fees
- Fixed spread accounts
- Lower minimum deposit requirements
- Trade with micro/mini lot sizes
Cons
- Spread mark-ups
- Lack of transparency
- Increased slippage
- Conflict of interest
Who are the best dealing desk forex brokers?
There are hundreds of DD brokers that you can trade forex with. The majority of them will offer a great selection of major, minor and exotic currency pairs. Below you can see a selection of our best forex brokers with a dealing desk.
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
$1
1974
1:30
ASIC, CySEC, FCA (FRN 509909), FSA, FSCA, FMA, ISA, MAS, EFSA, DFSA, SCB, NFA, CFTC
£/€/$50
2008
1:30
Conclusion: is a dealing desk forex broker right for me?
It really depends on your trading strategy and investment size. If you only have a few dollars to trade with, then your options may be limited to a dealing desk broker as many ECN brokers have a minimum deposit from $200 and up. If the deposit is not a problem and you don’t need access to fixed spreads, I would personally stick to non-dealing desk brokers as I find that they tend to have lower overall trading costs without any potential conflict of interest.
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