What are the model's brokers?

Depending on the execution of transactions have the following model brokers:

  1. DD ("Dealing Desk");

  2. NDD (Non Dealing Desk").

In the first case, all the trades opened by the trader executed within dealing Desk (market maker). Accordingly, the profit of the trader is a direct loss of DTS, so often a company operating under this model is in conflict with their clients:

  • substitutes market quotations on their own, resulting in formation of "hairpin" and the Gaps, which was not on the market;

  • widens spreads and is constantly offering new price when opening new positions, not allowing to make transactions at competitive prices;

  • knocks stop-loss traders;

  • cancels profitable trades of their clients;

  • force closes losing positions traders, explaining the change in margin requirements;

  • does not pay the earned money;

  • do not get in touch with their customers etc.

In the second case, a model of brokers NDD stands for no participation of dealing Desk. In this case the broker does not conflict with their customers. He is an intermediary between traders and liquidity providers (banks), and for his services receives a Commission. This model is considered the most reliable and profitable for traders. It works on the following principle: when opening the transaction, the broker takes it to the interbank market, where it will open at the best price, you will be able to offer liquidity providers. All this happens in a fraction of a second and is completely safe and confidential for the trader.