You can map the real Forex prices with a No Dealing Desk Broker. Is this why no dealing desk brokers in Canada are better than dealing desk brokers for currency trading? Canadians can participate in Forex trading in Canada with dealing desk brokers that are also called market maker brokers.
Is it worth trading with a No Dealing Desk Broker? Is it legal to trade with a NDD broker in Canada? We discuss more about NDD forex broker Canada in this page.
The Best No Dealing Desk Forex Brokers in Canada
Pros & Cons of the no-dealing desk broker at a glance
Many traders consider brokers to be more trustworthy because they only act as an intermediary in trading, connecting the customer to the interbank market.
Traders lose money with both an ECN and a STP broker, as well as a market maker broker, according to statistics in the United States. As a result, the argument of reliability based on the No Dealing Desk Broker’s natural interest in the success of the customers is invalid. This has an impact on regulated brokers. Customers have completely lost faith in unregulated offshore brokers.
What is a No Dealing Desk Forex Broker?
A No Dealing Desk Forex Broker is a company that allows traders to trade currency pairs without having to deal with a middleman. The difference between no dealing desk forex brokers and dealing desk forex brokers is that no dealing desk forex brokers connect customers to the interbank market and act as intermediaries, rather than bringing buyers and sellers together internally. No dealing desk providers can also bring together the best conditions from various banks in this way.
Online brokers can offer their customers the best rates or the fastest execution of their trades by acting as an intermediary. Furthermore, there are hybrid models that combine dealing desk and no-dealing-desk brokers.
Different Types of No Dealing Desk Forex Brokers
The ECN brokers and the STP brokers are the two most common types of No Dealing Desk Forex brokers.
ECN-Broker stands for Electronic Communication Network Broker.
This type of No Dealing Desk Broker is an electronic trading system that automatically selects the best deals for each customer from a pot of currency pairs offered by partner banks.
These partner banks are liquidity providers in this context, and they compete with one another, resulting in different prices for the same currency pairs.
STP-Broker stands for Straight Through Processing Broker.
This broker no longer intervenes in the trading of the customer. The STP broker does not go out of his way to find the best deal for the customer. In this case, an electronic trading system will execute the customer’s trade as quickly as possible. The speed, not the course, is the deciding factor.
No Dealing Desk Broker vs Market Maker Broker (Dealing Desk)
The main difference between no dealing desk brokers and market maker brokers is how they execute trades.
Market maker brokers score with increased security, whereas no dealing desk brokers entice their customers with the promise that they have a natural interest in the customer’s success through their trading model.
Customers’ trades with external traders are not covered by the market maker broker, so market makers must cover customers’ profits with the losses of other customers.
If there is any doubt, he must pay with his own money. If they want to get a license in a country, market maker brokers must also put down a larger security deposit.
The term “deposit insurance” is used here. As a result of the Swiss franc crash, no dealing desk brokers are actually safer, as market maker brokers lost a lot of money to customers. Customers benefit from the flexibility of no-dealing-desk brokers.
Who is a No Dealing Desk (NDD) broker for?
NDD brokerage and the NDD system knowledge
NDD brokers are best suited to profit-driven individuals who are familiar with NDD systems and brokerage. Beginners, on the other hand, can use the NDD provider’s demo account to gain experience. Almost all NDD providers provide a free demo account. When dealing with such an offer, knowledge is especially important.
Fund safety and accessibility
NDD brokers are not the same as market makers. The competition among the partner banks ensures the security of ETC brokers. This indicates that the least expensive course is being offered.
NDD brokers are also subject to fewer regulations. They only have to hedge a fraction of the deposits that market makers do. As a result, they are appropriate for any investor who understands and can assess the business model as well as the risks.
No Dealing Desk Broker costs
They are frequently more adaptable than market makers. STP brokers ensure that their customers have access to the most up-to-date trading information at all times. The costs are particularly low here, so the broker is suitable for all types of traders.
Is a No Dealing Desk Forex Broker Scam or Reputable?
The NDD brokers often entice customers with the promise of better courses. American statistics have refuted this claim. These forex brokers, on the other hand, cannot be considered scams.
No dealing desk brokers simply operate differently than market maker brokers and offer distinct benefits and drawbacks. Anyone who understands this is on the safe side. As a result, no dealing desk brokers have a high level of trustworthiness.
Brokers with no dealing desks are perfectly legal forex traders. Currency pair trading can be done here at the real interbank rate or at a faster rate. The claim that NDD brokers are better for traders due to their allegedly superior strategy has been debunked. The Canadian NDD brokers, on the other hand, are reputable trading platforms if they have an official license.
What are no dealing desk brokers?
No Dealing Desk Brokers are Forex brokers where currency pairs can be traded. This is done through a connection to the interbank market.
What is the best NDD Forex Broker in Canada?
The online broker FXCC is one of the top recommended NDD Forex broker Canada.
What is the difference between ECN and STP?
ECN brokers offer their users the best currency rate that one of their partner banks offers. In this way, customers are offered the best possible course. An STP broker, on the other hand, executes the trade as quickly as possible and no longer intervenes in the trade.
Are NDDs or Market Makers better suited?
You can’t say that in general. Security-oriented traders should rather use market makers, as the state requires higher deposit protection. However, NDD brokers are not necessarily bad or particularly insecure. They just work differently.