What does "no dealing desk" really mean? | Forex Factory

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What does "no dealing desk" really mean?

  • #1
  • First Post: Aug 8, 2010 5:48pm Aug 8, 2010 5:48pm
I see a lot of forex companys advertising this, does it really mean anything? Just becuase they have no delaing desk doesn't mean there are an ECN, right? I would think if they were really an ECN they would say that, not no dealing desk. And what does STP stand for?

BTW, any opinions on Go Markets?
  • #2
  • Aug 8, 2010 6:05pm Aug 8, 2010 6:05pm
GoMarkets Discussion
  • #3
  • Aug 8, 2010 10:07pm Aug 8, 2010 10:07pm
Thank you. that answers one of my questions.
  • #4
  • Aug 9, 2010 7:39am Aug 9, 2010 7:39am
So anybody know what no dealing desk and/or STP means?
  • #5
  • Aug 9, 2010 8:28am Aug 9, 2010 8:28am
See, dealing desk is a guy/gal sitting in front of a PC in a cool broker's office and pressing buttons. You hit "buy" (sell, whatever), s/he gets a request and then presses "Ok" button which opens your order. If s/he went to dinner, chats with friends at Facebook, went to bathroom, has bad mood or uses drugs at the moment - you will be waiting for your order to be opened/closed/modified forever. When there is no dealing desk it means that the guy/gal got fired, and the whole thing is done automatically.
  • #6
  • Aug 9, 2010 8:44am Aug 9, 2010 8:44am
Quoting Acrita
See, dealing desk is a guy/gal sitting in front of a PC in a cool broker's office and pressing buttons. You hit "buy" (sell, whatever), s/he gets a request and then presses "Ok" button which opens your order. If s/he went to dinner, chats with friends at Facebook, went to bathroom, has bad mood or uses drugs at the moment - you will be waiting for your order to be opened/closed/modified forever. When there is no dealing desk it means that the guy/gal got fired, and the whole thing is done automatically.
LOL. Classic
  • #7
  • Aug 9, 2010 9:02am Aug 9, 2010 9:02am
Quoting Acrita
See, dealing desk is a guy/gal sitting in front of a PC in a cool broker's office and pressing buttons. You hit "buy" (sell, whatever), s/he gets a request and then presses "Ok" button which opens your order. If s/he went to dinner, chats with friends at Facebook, went to bathroom, has bad mood or uses drugs at the moment - you will be waiting for your order to be opened/closed/modified forever. When there is no dealing desk it means that the guy/gal got fired, and the whole thing is done automatically.
true, but the human deal desk has been place with computers, so the broker can still play the same tricks as a human deal desk
  • #8
  • Aug 9, 2010 9:29am Aug 9, 2010 9:29am
Quoting inkexit
So anybody know what no dealing desk and/or STP means?
well worth reading:
http://www.forexfactory.com/showthread.php?t=240167
  • #9
  • Aug 9, 2010 11:26am Aug 9, 2010 11:26am
NDD doesn't mean that they are not Market Makers, it means that they don't have human dealers, but a lot of supposed ECN brokers are really ECN-like brokers (like GoMarkets), this means that they are in fact MM.

If you want to trade with a MM I recommend you someone with a high net capital, NDD and low spreads.
  • #10
  • Aug 9, 2010 11:51am Aug 9, 2010 11:51am
A lot Non-Dealing Desk brokers masquerading as ECN are actually MM. Read through a lot of ECN's Terms and Conditions Disclaimer and you'll see a clause vaguely stating if, their automated system unable to match buyer/sellers, the broker will be the counter-party to the trade. That is a dead give away in differentiating true ECN brokers from MM.

Also, keep an eye open for reviews stating ECN brokers placing traders on Manual Execution. Another dead give away. A lot of hard-core scalpers and/or scalper EA flock to ECN's because of the anonymity and non-dealing desk thinking they will not be bothered by the broker. A lot of ECN's has place a small group of scalpers on manual execution or delayed their order entry. Dead give away ECN's that are really MM.
  • #11
  • Aug 9, 2010 1:37pm Aug 9, 2010 1:37pm
It sounds like that, unless you're really up on this stuff, you don't know what you're going to get ... which suits the brokers (non-ECN's) just fine.
  • #12
  • Aug 9, 2010 2:09pm Aug 9, 2010 2:09pm
Quoting DemoTrader
true, but the human deal desk has been place with computers, so the broker can still play the same tricks as a human deal desk
Yeah ...

MT4 Brokers' Virtual Dealer Plug-In
  • #13
  • Aug 9, 2010 3:09pm Aug 9, 2010 3:09pm
This reminds me each time FXCM is accused of slippage & manipulating price feed immediately gunning as they are non dealing desk prevent that!

Regards
13
Brokers are angels
  • #14
  • Aug 9, 2010 4:06pm Aug 9, 2010 4:06pm
No Dealing desk is a completely misleading term and is bound to get banned by the NFA. Many of these companies say they don't have a dealing desk they have a trade desk or trade support. its all bs in my opinion. If you want to trade on an ECN go to Dukascopy or IB other wise you are working with a market maker plain and simple.
  • #15
  • Aug 10, 2010 3:37pm Aug 10, 2010 3:37pm
Quoting fx13
This reminds me each time FXCM is accused of slippage & manipulating price feed immediately gunning as they are non dealing desk prevent that!

Regards
13
So saying that FXCM is abusing NDD I got a warning. OK sorry but this is my last post
Brokers are angels
  • #16
  • Aug 10, 2010 4:35pm Aug 10, 2010 4:35pm
Quoting Voldemort
No Dealing desk is a completely misleading term and is bound to get banned by the NFA. Many of these companies say they don't have a dealing desk they have a trade desk or trade support. its all bs in my opinion. If you want to trade on an ECN go to Dukascopy or IB other wise you are working with a market maker plain and simple.
Dukascopy and MB are not ECN. They're market makers who take the opposite side of traders.
From Dukascopy Trading Agreement. Can be found here: http://www.dukascopy.com/swiss/english/forex/docs/
Quote
“Counterparties” shall mean banks and/or
brokers and/or marketplaces and/or any
client or partner of Dukascopy or
Dukascopy itself participating in the
transactions executed for the account of
the Client in opposite direction;

Traders really need to read their brokers legal matters.
  • #17
  • Aug 10, 2010 4:44pm Aug 10, 2010 4:44pm
So, does anyone know of any brokers that are not market makers? Sounds like if, there are any at all, these are few and far between.
  • #18
  • Last Post: Aug 10, 2010 4:49pm Aug 10, 2010 4:49pm
Both ECN and STP are Non Dealing (NDD) wich means no intermediary (broker).

STP you deal directly with banks.

ECN you deal with banks and with other traders participating their liquidity pool.

The more the banks/ traders, the more the liquidity, the lower the spreads.
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