2.6 The "No Dealing" Desk kind

 
"No Dealing Desk" brokers bridging the supply and demand.
 
These brokers do not have a Dealing Desk between the trader and the market. They do not offer their own quotes and hence do not make the market. Traders’ orders are matched directly to another trading entity in the market. These trading entities may be interbank market, hedge funds, other Forex brokers, Mutual funds or even other clients. They will match your order for the quantity and price with any other counter order available to them. In simple terms what they do is bridging of demand and supply. 
 
Order execution and confirmations are very fast and there are no re-quotes on orders. This is particularly useful during important news releases when the market makes sudden and volatile moves. 
 
These brokers, the NDD kind, make money through:
 
  • Commissions, or

 

  • Offer an increased bid-ask spread and not charge commissions, or

 

  • Charge a commission as well as higher spread than the market makers
 
The "No Dealing Desk type brokers are never a counterparty for any trade position you take. They are just match makers and are unaffected of any profits or losses you make.
 

Again, ‘No Dealing Desk’ brokers may either be STP brokers or ECN+STP brokers. 

 

 
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