Company

Spread

for EUR/USD

Min.

Deposit

Platforms

Offered

Account

Types

Spread

Type

Funding

Methods

Customer

Support

Execution

Details
CFDs are leveraged products and can result in the loss of your capital. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For No Dealing Desk

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose
For No Dealing Desk?

scored best in our review of the top brokers for no dealing desk, which takes into account 120+ factors across eight categories. Here are some areas where scored highly in:

  • + years in business
  • Offers + instruments
  • A range of platform inc.
  • 24/7 customer service
  • Tight spreads from pips
  • Used by 0+ traders
  • Offers demo account
  • 0 languages
  • Leverage up to

offers one way to trade: . If you wanted to trade EURUSD through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

have a trust score, which is . This is largely down to them being regulated by , segregating client funds, being established for over years, and much more. For comparison:

Trust Score comparsion

Trust Score
Year Established
Regulated by
Uses tier 1 banks
Company Type Private Private Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who is (& Isn’t)
Suitable For

As mentioned, allows you to trade in one way: .

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading
  • Social Trading

Not Suitable for:

To trade with , you'll need a minimum deposit of $. offers a range of different account types for different traders including a , .

Finally, isn't available in the following countries: . They do not offer islamic accounts either.

Part 3

A Comparison of vs. vs.


Want to see how stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
Fixed Spreads
Variable Spreads
EUR/USD Spread
GBP/USD Spread
USD/CAD Spread
USD/JPY Spread
DAX Spread
FTSE 100 Spread
S&P500 Spread

Comparison of account & trading features

Spread type Fixed
EUR/USD Spread
EUR/GBP Spread
Crude Oil Spread
Gold Spread Private Private Private
DAX Spread

Part 4

No Dealing Desk

Forex Brokers can offer either Dealing Desk or No Dealing Desk execution models.

Brokers offering a dealing desk are also acting as market makers; they generally create their own liquidity, setting the bid and ask price themselves and taking the opposite side of a client’s trade.

Brokers operating No Dealing Desk (NDD) execution, rather than taking the opposite position of the trade themselves, use external liquidity providers offering variable spreads. Trades are executed electronically at the best price available in the market.

In a highly-competitive forex trading market, forex brokers usually highlight that they provide transparent and fair execution as part of their service to their clients. However, providing their forex service through their own proprietary trading or dealing desk means that their clients get their prices direct from the forex broker, not from the forex interbank market, which is composed of the top global currency liquidity providers.

Dealing with the forex broker’s own dealing desk can give rise to various conflicts of interest, which may result in price manipulation. This can be especially true during fast market moves, like when pertinent data is released, or during anticipated and/or surprise geopolitical events (e.g. the UK EU membership referendum – Brexit, where the event was anticipated, but the result was a big surprise, hence the big market move in GBP/USD rates, from 1.50 to 1.30, June 23rd, 2016).

To address this issue, most regulated forex brokers now offer No Dealing Desk execution, where traders are given access to various liquidity providers, like global banks, prime brokers, and other forex market players. As there is no markup added, No Dealing Desk execution should result in lower spreads being offered. With the No Dealing Desk execution option, price manipulation is eliminated, as orders are invisible to the liquidity providers and are processed automatically.

Different types of No Dealing Desk broker models

Either Straight Through Processing (STP) or STP with an Electronic Communication Network (ECN) are offered by brokers operating the NDD model. Where brokers are just offering STP, all positions are transferred to liquidity providers. Where an ECN is in place, the orders can interact with other orders on the network until a match is found. In both cases, the broker itself does not act as the market maker and everything from placing a trade to its execution is done electronically without manual intervention. Trades are matched automatically and instantaneously. STP/ECN brokers usually charge a small transactional commission, but will not alter the spread.

Pros and cons

No dealing desk brokers offer the following advantages;

  • No re-quotes – positions are generally executed instantly.

  • Positive & Negative Slippage – Unlike dealing desk brokers who pass on only negative slippage, no dealing desk brokers pass on negative and positive slippage, thus balancing the negative impact of slippage over time.

  • No conflict of interest – The potential for conflict of interest is removed when trading with genuine STP/ECN Brokers as they are making their money through a predefined commission. Dealing desk brokers, however, make money from the losses of their clients; therefore they have been known to become involved in stop loss hunting, spread widening and other such negative tactics.

  • Automatic processing – dealing desk brokers can be overwhelmed as they are required to manually approve each trade, which can be a large drain on their resources.

Some traders still prefer to use the dealing desk model, however, because of the fixed spreads.

Brokers that offer No Dealing Desk

Brokers such as XM and FXCM offer a No Dealing Desk trading environment. Furthermore, as they are regulated by the FCA, and authorised to provide regulated products and services, they are bound by stringent regulations that provide some protection for clients and their funds. A list of regulated online brokers can be found here.

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