Trading Essentials
What are the difference between Dealing Desk and No Dealing Desk brokers in Forex trading?
6 min read

Dealind desk vs No dealing desk

Any financial market needs a place where trading takes place. The Forex market needs a platform for exchanging currency pairs like stocks or crypto. Forex brokers are divided into Dealing Desk (DD) and No Dealing Desk (NDD). Learn more about the characteristics of these two floors through the following article.

>> See more interesting information about Forex at:

8 Basic Forex terms you should know before trading

How to trade Forex for beginners?

Top 9 Most Famous Forex Traders And Their Stories


Forex trading platform overview

dealing desk vs no dealing desk

A Forex exchange is a company that may buy and sell currency pairs on the financial markets. Forex brokers trade currencies, commodities, and stock indices.

Before, Trading forex on the stock exchange, hire a broker. Tech advancements make currency trading easy - open a Forex broker account to invest.

Trading forex through online forex brokers also helps traders reduce transaction costs.

What is a Dealing Desk Broker?

dealing desk

Exchanges DD - Dealing Desk is also known as an order-taking floor. This will be a market-making platform for traders, building an internal order-matching system with each other. They provide liquidity to both buyers and sellers, meaning they will be buying and selling with clients at the same time. This means the Dealing Desk brokers offer both bid and ask prices, hence the name exchanges DD is the Market Maker.

For example, you enter an order to buy one lot of USD/JPY with an exchange DD. To be able to execute your orders, the exchange Dealing Desk will go find another client on the exchange who is also selling a lot of USD/JPY to match you. If not, they can direct you to a liquidity provider.

The floor's Dealing Desk usually makes money on fixed spreads and provides liquidity to its clients. Depending on each exchange, they will have different risk management policies. So, you must study the information before opening a trading account.

How Do Dealing Desk Brokers Work? 

To fill your order, your forex dealing desk broker will first try to find a matching sell order from its other retail traders’ clients or pass your trades on to its external liquidity providers in the interbank market (other financial institutes, banks, etc). 

By doing this, they minimize their risk, as they earn from the spread without taking the opposite side of your trade. In case there are no matching counter orders, they will take the opposite side of your trade. 

What is a No Dealing Desk Broker?

No dealing desk

NDD Broker is No Dealing Desk, which is an exchange that is the opposite of an exchange Dealing Desk. They will not hold your orders but will pass them to the liquidators. NDD connects traders and liquidity providers for trading.

Customers buy and sell at market price through the exchange. So No Dealing Desk, also known as an order transfer platform, is distinct from.

The broker will make money from commissions collected from traders and sometimes spread fees (very small). No Dealing Desk broker will add a certain number of pips (usually 1 pip) to the bid/ask price. This price increase is not related to the client's trading orders or to the client's winning or losing.

There are two major reasons why No Dealing Desk brokers are often preferred. First, they work with a trader, getting him the best prices and flexible spreads. Dealing desk brokers, on the other hand, work against the trader; by taking the opposite position, they make money when the trader loses.

The second reason is speed. No Dealing Desk brokers process trade orders immediately. Brokers using the Dealing Desk system act on a delay, with each order getting approval manually. Delays – often in the form of requotes (quoting a different spread after an order is placed) – can cause traders serious losses, specifically when the market is volatile.

No Dealing Desk brokers are divided into 2 types: STP and STP+ECN

Floor No Dealing Desk được chia làm 2 dạng STP (Strange Through Processing) và ECN + STP (Electronic Communication Network + Straight Through Processing)

What is an STP Forex Broker?

STP - Straight Through Process, can be understood as "direct command". STP brokers will route customers' orders to liquidity providers and banks rather than looking around their customer base. STP brokers will have a lot of liquidity providers and they will offer diverse prices to match orders with traders.

For example, an STP broker has 5 liquidity providers and they will have different prices. The broker will review the prices of all 5 liquidity providers and show you the best price.

Sometimes the STP broker will take the best price and add 1 pip to make a profit. Adding how many pips depends on the broker. The best STP broker is the one that adds 0 pips. They only charge a commission.

What is an ECN Forex Broker?

No dealing desk

ECN  forex brokers connect customers to the trading network. Here, the participants will trade among themselves by offering the best price they desire. A true ECN forex broker will allow their clients' orders to interact with other trading orders participating in the ECN system.

ECN also allows their clients to view the “Depth of Market”. Depth of Market displays the buy and sell orders of the participants. Due to the nature of ECN, it is very difficult to increase the spread to earn income, so ECN forex brokers often earn income through a commission.

Difference between two exchanges DD and NDD

Dealing desk vs No dealing desk

Dealing Desk (DD)

No-Dealing Desk (NDD)

Market Maker - market maker

Not Market Maker

Provide buying and selling prices

Intermediaries stand between

Make profit through Spread fees and provide liquidity

Make profit through commission and increase spread

Fixed spread

Fluctuating spreads

Bid/Ask is decided by the exchange

Bid/Ask is decided by the liquidity provider

Orders are decided by the Broker based on the trading platform

Automated order matching, no quotes

How should I trade?

The number of forex strategies on the market is endless, and each will work best if used with the right type of forex broker. The Dealing Desk often has much higher spreads than the No Dealing Desk. Those who need low spreads can choose to trade with STP or ECN. In contrast, the floor Dealing Desk has no commission fee. So if you have long-term strategies, and open a few positions, the floor would be an appropriate choice.

Which types of forex brokers are right for you?

As long as you know what your strategy requires and then choose the floor Dealing Desk, a nice Dealing Desk is suitable. To know which floor is suitable, you can consider the following factors:

  • If your forex trading experience is 6 months or less, you should only trade with brokersDealing Desk.

  • If you have more than 1 year of experience in forex trading and are confident, you can trade with No Dealing Desk.

And usually, major forex brokers will integrate different types of forex brokers on their trading platforms. They will provide accounts Dealing Desk and No Dealing Desk. This gives traders more options and flexibility in their trading strategies.


Understand and distinguish the types of exchanges to understand their properties and characteristics. From there, traders can choose which type of exchange is suitable for their trading strategy. Dealing Desk and No Dealing Desk are the two most popular types of forex trading platforms at the moment. FXCE Blog not only provides information about trading but also information about the forex market. Stay tuned for the next articles on FXCE Blog.

>> Follow FXCE's official channel for traders:

| Facebook | YouTube | Website | Blog |


kiến thức forex