Non Dealing Desk: worth a choice against Market Making!? | Forex Factory

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Non Dealing Desk: worth a choice against Market Making!?

  • #1
  • First Post: Aug 20, 2017 5:34am Aug 20, 2017 5:34am
Hello fellows,


i would like to know if someone has ever tester XTB which describe itself as a Non Dealing Desk ?

How a retail trader can control its broker behaviour at the end of the day ?
The broker, even NDD, can have secret deal with its liquidity provider that sees all the order book of its clients !!!

Besides, if you check carefully, BNP Paribas is the liquidity provider of IGMarkets but also XTB which can lead to interest conflicts !

Thanks for your feedback,

LS
  • #2
  • Edited 10:07am Aug 20, 2017 8:52am | Edited 10:07am
hey lifespirit

#1 choice for trustworthy no dealing desk / ECN broker would be Global Prime

https://www.globalprime.com.au

transparent, direct liquidity from major interbank and will provide receipts for every trade to prove that if you ask. look up their reviews on forexpeacearmy, they have everybody happy with their service

blam

Quoting lifespirit
Hello fellows, i would like to know if someone has ever tester XTB which describe itself as a Non Dealing Desk ? How a retail trader can control its broker behaviour at the end of the day ? The broker, even NDD, can have secret deal with its liquidity provider that sees all the order book of its clients !!! Besides, if you check carefully, BNP Paribas is the liquidity provider of IGMarkets but also XTB which can lead to interest conflicts ! Thanks for your feedback, LS
  • #3
  • Aug 20, 2017 8:04pm Aug 20, 2017 8:04pm
Don't bother, on a retail level, these are all marketing terms. Look at Fortress Prime, their liquidity is garbage despite selling these marketing terms. They went dark when their ONLY liquidity provider disappeared. There's only a handful of reputable brokers.
  • #4
  • Aug 21, 2017 1:25am Aug 21, 2017 1:25am
Market makers
Market makers in Forex basically bets against you. For example, if you buy 1 lot of EURUSD at 1.35, and your broker is a market maker, they are ‘selling 1 lot of EURUSD at 1.35’, or essentially betting against you. If you win, your broker loses. If you lose, your broker wins.
One sign that your broker is a market maker is from them offering you fixed spreads, or the spreads are ‘capped’ at a certain limit. In a real market, there is absolutely no way an STP or ECN broker can offer you such conditions, unless the broker uses its own money to ‘make the market’ – hence the name market maker.
Given this hard statistic that 90% of traders blow their accounts within the first 6 months of trading, betting against retail traders can be quite profitable business. Also, statistics show that traders with account sizes $10,000 and above are much less likely to blow their accounts.
This is the reason why brokerages that do not bet against their clients prefer to set a minimum account size of $10,000. They prefer to work with consistently profitable clients, who can bring in consistent volumes. An example of such a brokerage would be LMAX, or Alpari PRO (min $25,000).
An example of brokers who are a market makers are Oanda and IG Markets. With that being said, when I was trading with Oanda, I did not receive any requotes, which is typical of a market maker. However, I did get extremely high spreads during news.
Market making can be also used to reduce costs, rather than bet against clients. This is done by internal matching of trades, somewhat like an exchange. If you want to buy 1 lot of EURUSD at 1.35, and another trader wants to sell 1 lot of EURUSD at 1.35, the market maker will internalise the trades and match both parties together, instead of sending both trades to the interbank market, where they have to pay a certain fee for each trade sent.

Straight through processing (STP)
An STP broker simply sends all your trades to the interbank market or its liquidity providers (LPs), regardless of whether they can be matched internally or not. For each trade sent, the STP broker pays a small fee to the LPs. An STP broker has liquidity arrangements with several bank partners, or liquidity providers to provide quotes and agree to take the other side of the trade. This is different from an ECN, as you shall see below. STP brokers usually have high spreads than ECN brokers. Remember, STP is different from ECN!
An example of STP brokers who do not bet against their clients would be FXPig DMA and Global Prime Forex.


Electronic communications network (ECN)
An ECN network has hundreds of liquidity providers all sending quotes to the ECN venue at the same time. The ECN then aggregates all the quotes to show only the best bid and best offer, which make up the spread. This can be zero at times! You can see this is very different from STP brokers, who only stream quotes from several bank partners, compared to an ECN who has hundreds of LPs. It is much more likely that you will see a lower spread on an ECN broker compared to an STP broker.
  • #5
  • Aug 26, 2017 12:34pm Aug 26, 2017 12:34pm
Quoting blamshakk
hey lifespirit #1 choice for trustworthy no dealing desk / ECN broker would be Global Prime https://www.globalprime.com.au transparent, direct liquidity from major interbank and will provide receipts for every trade to prove that if you ask. look up their reviews on forexpeacearmy, they have everybody happy with their service blam {quote}
Be aware of Forex Peace Army: https://www.instaforex.com/forexpeacearmy.php
  • #6
  • Aug 26, 2017 12:47pm Aug 26, 2017 12:47pm
Quoting londonboy
Market makers Market makers in Forex basically bets against you. For example, if you buy 1 lot of EURUSD at 1.35, and your broker is a market maker, they are ‘selling 1 lot of EURUSD at 1.35’, or essentially betting against you. If you win, your broker loses. If you lose, your broker wins. One sign that your broker is a market maker is from them offering you fixed spreads, or the spreads are ‘capped’ at a certain limit. In a real market, there is absolutely no way an STP or ECN broker can offer you such conditions, unless the broker uses its own...
Hi Londonboy, to me this is valuable information, it gives me a glance at the broker types and a better understanding of the differences. So thank you for that! I find it difficult to choose a new broker. I prefer one who is not into monkey business, betting against me, stealing pips away at entry/exit, etc.. Basically, a decent, ethical broker for retail trades (typing this, I realize it sounds like a joke ). Browsing through FF and other websites I found this is almost an impossible task. It looks like all brokers a out there to stab you in the back. Hence the 1-minute sign up process to lure you in. Any recommendations I should look into?
  • #7
  • Aug 26, 2017 12:54pm Aug 26, 2017 12:54pm
Quoting BataviaTrade
{quote} Be aware of Forex Peace Army: https://www.instaforex.com/forexpeacearmy.php
even if it would be true also...
coming from a bucket shop broker who still have 3 pips fixed spread on majors, and up to 12 pips on the rest...
instaforex does deserve to be on scam alert lists! ( as well as all other bucket shops would)
what they represent that is anything but fair dealing, and most certainly not in the interest of their clients!
there is always, always another trade!!
  • #8
  • Aug 26, 2017 1:21pm Aug 26, 2017 1:21pm
Quoting BataviaTrade
{quote} Hi Londonboy, to me this is valuable information, it gives me a glance at the broker types and a better understanding of the differences. So thank you for that! I find it difficult to choose a new broker. I prefer one who is not into monkey business, betting against me, stealing pips away at entry/exit, etc.. Basically, a decent, ethical broker for retail trades (typing this, I realiit sounds like a joke ). Browsing through FF and other websites I found this is almost an impossible task. It looks like all brokers a out there to stab you...
It depends where you are based .
  • #9
  • Aug 27, 2017 11:35am Aug 27, 2017 11:35am
Quoting londonboy
{quote} It depends where you are based .
Hi Londonboy, I'm sorry forgot to mention I am in Europe.
  • #10
  • Aug 27, 2017 11:37am Aug 27, 2017 11:37am
Quoting profitfarmer
{quote} even if it would be true also... coming from a bucket shop broker who still have 3 pips fixed spread on majors, and up to 12 pips on the rest... instaforex does deserve to be on scam alert lists! ( as well as all other bucket shops would) what they represent that is anything but fair dealing, and most certainly not in the interest of their clients!
Also, instaforex is not on the list of the Brokers section here at FF, if that is saying something, I don't know...
  • #11
  • Last Post: Aug 27, 2017 12:04pm Aug 27, 2017 12:04pm
Quoting BataviaTrade
{quote} Also, instaforex is not on the list of the Brokers section here at FF, if that is saying something, I don't know...
I am promoting any brokers its just my preferences. I use XM.com , IC Markets , and recently started with finpro trading.
I have used XM and IC Markets for 4 years and 3 years respectively
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