No Dealing Desk

What are the different types of Brokers?

There are 2 main types of Brokers: Dealing Desk (DD) otherwise known as Brokers "market maker", and No Dealing Desk (NDD).

What is a Forex Dealing Desk Broker?

A "market maker" or "dealing desk" is a broker who has his own "exchange office". Instead of hedging your positions on the market (through the interbank market), the broker will take care of your transactions and decide how to handle them. He therefore plays the role of the market himself.

The dealing desk has a "risk book" in which it establishes a strategy to cover its risks, which will depend on several factors, in particular based on its clients:

The broker will therefore be able to adapt his strategy according to your level of trading (by observing your results), the volume you trade or the markets on which you trade.

The broker will therefore often take a position contrary to yours in order to become your counterpart. He is the intermediary between you and the liquidity provider (the bank).

There may therefore be a conflict of interest: a winning trader will prove to be a source of loss for the broker while a losing trader will be a source of income.

When high volumes are taken by clients, the broker will often hedge on the inter-bank market in a manner similar to that of a no dealing desk broker.

Market makers are the most widespread brokers on the market because they are simpler to set up and take advantage of the growing attractiveness of trading for individuals. Welcome bonuses are common and fixed spreads are used.

What is a No Dealing Desk broker in Forex?

A No Dealing Desk broker will faithfully place the orders imposed on him by traders through the interbank market. They buy and sell in real time, according to the choice of their trader, through one or more banks they work with. This solution is therefore more transparent and the broker is only remunerated on spreads and commissions.

We can note that there are two types of No Dealing Desk :

  • STPs (Straight Through Processing), also known as "pure brokers", which place orders through banks and are remunerated by the spread. Their spreads are therefore always variable.
  • ECNs (Electronic Communications Network) that aggregate the different positions requested at time t (between banks, market makers and traders) to get the best possible spread. Their spreads are therefore always variable.

Advantage of a No Dealing Desk broker :

These brokers play "transparency", quotes are accurate, spreads are low and there is no conflict of interest.

Disadvantage of a No Dealing Desk broker:

Their role as an intermediary can sometimes cause "slippage" when you place orders. Indeed, there is a time of inertia for your order to be executed.

Gravity Market, a No Dealing Desk broker

Gravity Market is a No Dealing Desk STP broker, which allows you to access the market in an efficient and fast way with very low spreads. Gravity Market's income comes solely from the commissions earned from trades made at Gravity Market (table of commissions available in the "Commissions" section here ).

The "Slippage" of orders is also a strong point for Gravity Market because we provide our clients with FORTEX, a platform (PC, Mac and Mobile) directly linked to the market that allows them to place orders in less than 5ms.

C’est pour ces raisons que nos clients, nos partenaires et des institutions financières réputées travaillent avec Gravity Market.