Forex dealing desk,option trading online,stocks binary options,investing in penny stocks at home - PDF Review

02.02.2014 admin
Market Makers, also known as Dealing Desk forex brokers act as a counter party to your trades. No Dealing desk brokers make their profits by charging a commission for the trade you place. An STP forex broker passes your traders directly to their liquidity providers, made up of banks, financial institutions as well as other traders on their network. When trading with an ECN forex broker, your trades can interfact with other client’s orders. An STP broker usually offers different types of accounts where traders can choose for a Dealing Desk or a No Dealing Desk account.
No dealing desk brokers offer higher level of transparency but at the same time require a higher level of investment.
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In other words, when you trade forex with a market maker, you are in effect trading forex against the Market Maker’s traders.
In other words, there are no dealing desk which mean when you place a trade, it is processed straight through. It is well known that the forex ECN model is actually the purest form of trading the forex. In other words, an ECN forex broker provides a marketplace where clients ranging from individual traders to banks and financial institutions can trade against each other. Forex trading accounts such as mini and micro accounts where the trades are below 0.1 lots are usually routed through a dealing desk as they are small and cannot be accepted by STP. Trading with an ECN or STP forex broker is ideal for intermediate traders who can manage to invest substantial amount of capital.
The term dealing desk is derived from the fact that there is someone on the other end of the trade who takes counter positions against your trades. A No Dealing Desk broker simply passes on your trades thus processing traders straight through to the interbank markets.
The more liquidity providers a forex broker has, the higher the chances of your trades getting filled. So if you make use of a mini or micro forex trading account, you are infact trading against the broker, which in this case becomes the market maker.


If you are a beginner or just started trading forex, opting for a forex market maker is a better option as you can learn your way by making use of micro or mini accounts, which are ideal as the investment is low and at the same times allows for a good learning curve. Just as with STP brokers, ECN forex brokers also make their money by charging a commission or fee for the trades that are made. After gaining substantial trading experience, upgrading to an ECN forex broker would be the most logical move. An ECN forex broker is one that displays the depth of the market and clients can see their own order size.
There are lots of rumours and speculations that dealing desk brokers tend to manipulate the prices, however this cannot be confirmed in its entirity. In short when trading with an ECN forex broker, traders can see where there is more liquidity and place trades accordingly. However, there is one fact that when you trade forex with a market maker, you will not be able to trade during market events as the price volatility puts the market maker at risk.



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