talhayousuf
Member
There are 2 different types of Forex Brokers: dealing desk and no dealing desk.
Dealing Desk Brokers
Dealing desk brokers are also called market makers because they literally create a market for their clients. When you open a new trade, they don’t forward the order to the interbank market, but they take the other side of your trade.
It can be a significant conflict of interest, but it is usually not important for 4-digit accounts (or less than 4).
No Dealing Desk Brokers
These brokers really act as intermediaries because they automatically connect you with other participants, that can be banks, retail traders, hedge funds or even other brokers. The only problem with this category of brokers is that they usually charge a commission for trading, so it is not recommended if you have a very small account with just a few dollars.
Learn more on https://fx-list.com/
Dealing Desk Brokers
Dealing desk brokers are also called market makers because they literally create a market for their clients. When you open a new trade, they don’t forward the order to the interbank market, but they take the other side of your trade.
It can be a significant conflict of interest, but it is usually not important for 4-digit accounts (or less than 4).
No Dealing Desk Brokers
These brokers really act as intermediaries because they automatically connect you with other participants, that can be banks, retail traders, hedge funds or even other brokers. The only problem with this category of brokers is that they usually charge a commission for trading, so it is not recommended if you have a very small account with just a few dollars.
Learn more on https://fx-list.com/