Dealing Desk vs. No Dealing Desk Forex Brokers
So, which type of forex broker should I select for safe trading? A dealing desk broker or a no dealing desk broker?
That is totally depends on you! However, no broker is better than the other brokers because it all depend on the type of trader you are and what type of brokers you prefer to trade. It is depends on you to make a decision whether you’d rather have tighter spreads but pay a commission per trade, or wider spreads and no commissions.
To make your consideration easier, here is a summary of the main differences between Market Makers, STP brokers, and ECN brokers:
Brokers are not EVIL… well most of them are not!
Forex brokers actually are not out to get you. They are here to do business with you, and not make you losing all of your money! Think about it, they will lose you as customer if you lose all your capital in trading with them.
The ideal clients of dealing desk brokers are those who more or less break even. Meaning, traders who neither loss nor win at the end.
This is how, the brokers make money on the client’s transactions, thus the clients stay in the business by not blowing out his entire account. In fact, brokers want their clients to keep coming back for more (trading)!