NDD issues with IBFX | Forex Factory

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NDD issues with IBFX

  • #1
  • First Post: Apr 15, 2009 1:06am Apr 15, 2009 1:06am
Does NDD mean that they a broker does not touch / change / maniuplate prices?

IBFX are claiming that they are NDD.

But, how can they claim that when they make their commission out of enhanced spread?

A widened spread is either widened by human / computer intervention (in other words a dealing desk).

Hence are IBFX liars, or have I got my interpretation of NDD wrong?
  • #2
  • Apr 15, 2009 1:21am Apr 15, 2009 1:21am
Its a 'grey' term. ANY broker can claim NDD if the deal desk technology is at the Liquidity Provider. Some use remote DD's and LP Kickbacks to make the statement true.
  • #3
  • Edited 1:52am Apr 15, 2009 1:25am | Edited 1:52am
Thank you fulltime247.


So IBFX's system has a dealing desk, but they don't own the dealing desk themselves.

So really they have a dealing desk, but just have the legal ability to advertise that they don't.

hmmmmmmmmmmmmmmmmmm

Playing semantics with words is pathetic on their behalf if that is the case, cause it really is just misleading the potential clients.

End of thread for me.
  • #4
  • Apr 16, 2009 7:07am Apr 16, 2009 7:07am
they don't have DD but their IB have DD, isn't it the same ?
  • #5
  • Apr 16, 2009 11:48am Apr 16, 2009 11:48am
I found a helpful way to see if a firm, that is regulated by the NFA, is a NDD or a DD is to refer to the counterparty disclose statement. You can find this on any full length fax application form for most any firm. The key words to search for are “make more”. Some firms might offer both NDD and DD so make sure you read the full disclose statement. As for IBFX I pulled up their counterparty discloser and it appears that they are still a DD.

THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. INTERBANKFX, LLC IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, INTERBANKFX, LLC'S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENT INTERBANKFX, LLC ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU THE PRICES INTERBANKFX, LLC OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND INTERBANKFX, LLC MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS. IF INTERBANKFX, LLC ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT INTERBANKFX, LLC MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE INTERBANKFX, LLC ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM INTERBANKFX, LLC OR ANY OF ITS SOLICITORS.

This typically shows that the firm does run a Dealing Desk Model.
  • #6
  • Apr 16, 2009 12:02pm Apr 16, 2009 12:02pm
Quoting hwwee
[color=black][font=Arial]I found a helpful way to see if a firm, that is regulated by the NFA, is a NDD or a DD is to refer to the counterparty disclose statement. You can find this on any full length fax application form for most any firm. The key words to search for are “make more”....
Doesnt this also say " close your account now and look for a Broker that doesnt trade against their clients?". It was those 150 pip "mystery" spikes on price that convinced me I was being robbed. Only stayed 6 months.
FF = Forex Faggots
  • #7
  • Last Post: Apr 23, 2009 1:09pm Apr 23, 2009 1:09pm
Quoting hwwee
I found a helpful way to see if a firm, that is regulated by the NFA, is a NDD or a DD is to refer to the counterparty disclose statement. You can find this on any full length fax application form for most any firm. The key words to search for are “make more”. Some firms might offer both NDD and DD so make sure you read the full disclose statement. As for IBFX I pulled up their counterparty discloser and it appears that they are still a DD.

[color=black][font=Arial]THE FOREIGN CURRENCY TRADING YOU ARE ENTERING...
Very interesting hwwee I'll keep that in mind when looking for my next broker.
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