Forex trading in Britain is indisputably popular. Many people are trading their FX via spread betting or CFDs. Nonetheless retailers are becoming more complex, classic spread betting seems insufficient. No Dealing Desk is a novel execution technology which is threatening to alter the typical CFD and spread betting firms from overvalued bookies into a much sophisticated trading firm that offers access to inter-bank markets.

How do brokers who use “no dealing desk” profit?

No dealing desk technology (NDD) provides access to trade among many of the global liquidity providers which all fight for your potential business. The NDD technology directly locates the best bids available and offer rates through your existing platform so that when you position a trade you are dealing with the most aggressive FX rates.

How Traditional Spread Betting Companies Profit?

Spread betting companies basically act as a market maker and oversee a trading book against their clients despite if you are taking a spread bet, FX contract or CFD. This results in that for every FX position opened with them they take the opposite position on your trade which will not be traded in the market. Should your position make a profit, your broker loses and consequences if you lose your trade your broker profits from it.

My broker asserts with no dealing desk, how can I make sure it’s true?

To make sure a broker really does offer NDDs they often do not give re-quotes on their strategies. The role of an NDD broker is plainly seen in the middle by overseeing deals which in return make transactions based on commission. There is no reason for them to limit your trading in any way.

Why does it take so long for limit/stop-loss orders to be filled when I am trying to leave from a winning position?

Brokerage companies run a book against their clients while their dealers are looking at the pending orders that clients are anticipating at a specific price. If a customer is making a good profit and is nearing his limit order, the dealing desk lacks the motivation to fill the orders as quickly as it is intended for because it represents a corresponding loss to the dealing desk’s profit. No NDD will ever remove this type of conflict of interest and they simply execute the best offer made available by their liquidity providers.

Why is my present broker constantly giving me re-quotes?

Most spread betting companies have an active enterprise that monitors all orders made through their trading platform. No NDD allows brokers to process their orders automatically from the position each client places the trade on their platforms. NDD has bypassed the need for any manual interaction which basically means much quicker execution.

Why does my broker not allow me to try certain trading strategies?

The main reason for this is basically rooted in the fact that dealing desks can only struggle with the most aggressive trading techniques where their clients are trading very taut ranges in order to make a couple of gems on each trade. Such strategies are just viewed by brokers as scalping. Dealing desk spread betting firms can ask you to stop trading in this manner especially if you are making money as a result.

When I look at the chart it has traded through my stop-loss/limit order, how can this happen?

Trading during quick moving markets can really make trading conditions very hard especially when trading during news events. A traditional dealing desk broker could use this as an excuse to change the price that your order was originally filled whereas an NDD broker will simply fill your order at the best available price all the time. Either way, a reduction in liquidity can really stir difficulties to both forms of execution or the only difference is that you are objectively treated by an NDD broker.

Why do my spread betting providers persist in stop-loss/limit orders as a minimum from the marketplace?

Most companies will not allow you to place pending orders that are too narrow to the market price, usually they limit you from doing only up to 10 points, because dealing desk spread betting needs time to process orders. Should you place an order with a stop-loss or limit order with a couple of points away from the market rate, it will not give their dealers enough time to hedge an opening.

The advantages of “no dealing desk”?

In general, NDD allows traders to achieve the following benefits over traditional execution methods most CFD and spread betting firms use:
1. No maximum sizable deal
2. No dealer involvement
3. No restrictions in trading strategies
4. Anonymous trade implementation
5. No trade re-quoting
6. No conflict of interest between trader and broker
7. Place limit and stop orders within 1 pip of the market value

Last Updated: February 4th, 2021