What kind of broker should I go with: Dealing vs No Dealing Desk?
It’s all up to you! There is no such thing as a great broker because it all depends on the kind of trader you are.
It’s entirely up to you if you’d prefer tighter spreads but a fee per deal or broader spreads but no commissions.
Day traders and scalpers typically favor tighter spreads because it’s cheaper to take small gains because the market has to cover less ground to cover transaction costs.
Wider spreads, on the other hand, are typically meaningless to longer-term swing or position traders.
Dealing vs No Dealing Desk?
To make your decision-making easier, here’s a summary of the major differences between Market Makers, STP brokers, and STP+ECN brokers:
| Dealing Desk (Market Maker) | No Dealing Desk (STP) | No Dealing Desk (STP+ECN) |
| Fixed Spreads | Most have variable spreads | Variable spreads or commission fees |
| Take the opposite side of your trade | Simply a bridge between client and liquidity provider | A bridge between client and liquidity provider and other participants |
| Artificial quotes | Prices come from liquidity providers | Prices come from liquidity providers and other ECN participants |
| Orders are filled by the broker on a discretionary basis | Automatic execution, no re-quotes | Automatic, no re-quotes |
Brokers are not evil… Well most of them aren’t!
Contrary to common opinion, forex traders are not out to extort money from you in the forex exchange market. You should choose wisely Dealing vs No Dealing Desk!
They don’t want to put you out of business; they want to do business with you! Consider this: if you lose all of your money tradings, they will lose customers as well.
Dealing with desk brokers’ ideal customer is one who is more or less successful. In other words, a client who does not win or lose at the end of the game.
In this way, the broker profits from the client’s transactions while the client remains in the game by not blowing his account. Brokers basically want their buyers to keep coming back for more (trading)!
Looking for a highly rated forex fund manager?
Fx Pips Guru has a strong group of forex experts who are managing forex accounts of our clients from different brokers dedicatedly. Just hire our forex fund managers here : https://www.fxpipsguru.com/forex-fund-manager/ .
