One of the primary steps any aspiring Forex Trader must do is choose their choice of a Forex broker. This is a really important decision and will be considered carefully.
There are various different types of Forex Broker models, but broadly, they are going to typically fall under two main categories – Dealing Desk Operations (DD) and Non-Dealing Desk Operations (NDD).
A Dealing Desk broker is additionally called a market maker because they create the marketplace for their clients providing them with the liquidity to execute their trades.
In this execution model once you trade profitably you create money off the dealing desk broker.
On the opposite hand, your broker profits from your trading losses. This also means you trade against your broker and your order is not being sent to the important inter-bank market.
Since the Dealing Desk broker keeps your order in-house and does not execute it to the important market, it is no wonder that Dealing Desk brokers have a conflict of interest against their clients.
On the other hand, No Dealing Desk brokers impart forthwith ingress to the interbank market.
In the No Dealing Desk model, there is no human intervention when a client places a trade so everything is executed automatically.
The prices you see at your trading platform are live quotes from global banks which suggests that the worth you have got once you click is that the final price for your position.