What is a « dealing desk » broker?

What is a "dealing desk" broker?

As you know, when you trade in the foreign exchange market, it is best to partner with a forex broker. By doing a little research you quickly realize that there are hundreds of them and that the choice can be difficult. Even though they all offer almost the same trading services and products we will introduce you to those that offer a « dealing desk » in this article.

Dealing desk brokers are brokers who have their own exchange office. They are also called market makers. In other words, this means that the broker does not go through the interbank market and is responsible for processing the transactions himself. These are the most widespread brokers on the market because they are very simple to set up.

The broker establishes a risk hedging strategy based on the level and volume of investor trading. Note that there are several ways of processing transactions. Most of the time the broker takes a position contrary to that of the trader since it is the broker who acts as an intermediary, he then becomes the counterparty of the position. This system sometimes gives rise to a conflict of interest since the winning trader is a source of loss for the broker. Conversely, if the trader loses he becomes a source of income for the broker.

The advantages of a broker « dealing desk » There is no intermediary so there is no delay between the moment the trader places his order and the moment it is taken into account. Note that this can be interesting especially for fundamental analysis enthusiasts. Indeed, in periods of high market volatility, positions are placed very quickly. Another advantage is that dealing desk brokers generally offer « fixed spreads » and guarantee their stop losses.

Disadvantages of a « dealing desk » broker Insofar as the broker generally trades in the opposite direction to the orders placed with him, the latter wins if the trader loses and loses if he wins, there may therefore be a conflict of interest. Even if it is rare, quotes can be wrong and scalping strategies are not allowed.

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What is a trading broker?

The broker manages your trading account. He executes your orders to enter and exit the market and charges a commission for this. He is the intermediary between you and the market. You cannot trade without him but this does not exempt you from paying attention to the services offered.

What is the salary of a broker?

A broker earns between €6,250 gross and €12,500 gross per month in France, with a median salary of €9,375 gross per month.

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A broker is an intermediary between banks and private individuals looking for a mortgage.

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What's a broker?

The broker is responsible for executing them. It is an intermediary authorised to carry out these transactions on the financial markets. As a financial entity duly accredited to carry out financial transactions on the stock exchange, it is responsible for carrying out the purchase or sale decisions taken by the trader.

What’s an MQTT broker?

What is an MQTT broker? To communicate with MQTT, the connected objects use a broker, i.e. a program in charge of receiving the published information in order to transmit it to the subscribed customers.

How to be a good broker?

You can indeed follow a training course to become a trader on the Internet through an online trading school or simply through your broker. Most brokers offer free training as well as a demo account to practise and practice your training without taking risks.

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eToro: The best forex broker for an easy start. Libertex: The best forex broker for those concerned about regulation and security Interactive Brokers: Forex broker leader in terms of available financial assets. XTB: The best broker in terms of low spread.

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What is an ECN account?

The ECN (Electronic communication Network) account is intended for professional traders who wish to benefit from the best possible trading conditions. The ECN account allows buyers and sellers to trade directly without any intermediary.

What is a « dealing desk » broker?
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