Close Menu
Basic Finance Care
    What's Hot

    Thinking About Investing in Precious Metals? Here’s Your Easy-Peasy Guide!

    June 30, 2025

    Mississauga Real Estate in 2025: A Smart Buyer’s Guide to the City

    June 14, 2025

    Don’t Trade CFDs Without Reading This First: How to Pick the Right Broker

    May 26, 2025
    Facebook X (Twitter) Instagram
    Basic Finance CareBasic Finance Care
    • Home
    • About Me
    • Hire Me
    • Contact
    • Submit Guest Post
      • Blogs Accepting Guest Posts
    Facebook X (Twitter) Instagram
    Basic Finance Care
    Forex Trading

    Types of Forex Brokers and Tips to Choose the Best for you

    James PaulBy James PaulAugust 19, 20174 Mins Read
    Forex Brokers
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Forex trades are facilitated by brokers, and as you begin your day trading career, it’s important that you fully understand the different types. In general, Forex brokers fall into two different categories: Dealing desk brokers and no dealing desk brokers.

    So which one is the best? Well, it depends on your trading style. Each has their own advantages and disadvantages, and they offer different methods for entering and exiting trades. For example, some offer tighter spreads, but charge commission, while others have wider fixed spreads but don’t take a commission on each trade. Each broker will offer the trader an electronic trading platform to enter and exit trades, but the biggest difference is how these trades are set up.

    Here’s a look at the different types of Forex brokers:

    Dealing Desk Forex Brokers (DD)

    This type of broker is called a “market maker,” which essentially means they can quote their own prices and they often trade against your position. For example, a dealing desk broker will take a counter position to you, and in effect, your losses are profit for the broker or one of the broker’s clients. Thusly, the majority of trades are fulfilled using the broker’s own liquidity.

    Dealing desk broker make their money on the spread – the difference between buy and sell prices for a currency – and they don’t take commissions. Yet, as market maker, the broker sets their own fixed price quotes, and sometimes these prices differ from actual market prices. Also, since winning trades are often fulfilled through the broker’s own liquidity pools, you often won’t be passed onto the interbank market to be paid.

    No Dealing Desk Forex Brokers

    Unlike DD brokers, no dealing desk, or NDD, brokers enable traders to buy directly through the interbank market, meaning the broker links up two parties on the interbank market who want to make opposing trades. These trades are facilitated through the broker’s electronic platform. One difference is that the spreads offered by NDD brokers are not fixed, but variable. And thus during market volatility, the spreads can quickly widen. NDD brokers also can make money on the spread, or they may choose to charge a commission as well.

    ECN, or Electronic Communication Network, means the broker also provides real-time order book data, which increases the transparency of the trading.

    Tips to Choose the Best Forex brokers in Australia

    Choosing a forex broker can be a daunting task especially if you are doing it for the first time. Indeed each one of them has their own particular services, and you might have some trouble in choosing the best ones. How should you proceed then? In this article, we will be sharing some tips to help you choose the best broker.

    Location

    Firstly, a broker that is located in the same country is preferred to be chosen by you. For instance, if you are located in the United Kingdom, you might want to contact a broker situated in the country. This might avoid some legal issues in the long run when it comes to transferring your money to your local back account. Additionally, it may save you some money in currency exchange if you want to change your profit into your local currency.

    Reference

    It is important that you pay attention to the reputation of the broker. Given the growth of the Forex industry, there are many scam brokers that have mushroomed all over the place. This is the reason that before choosing a broker you should make your due diligence. The best way is to search the name of the forex broker with the world scam on Google and find out what other people are saying about the particular broker.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    An Introduction to the Relative Strength Index in Trading

    March 22, 2021

    Selection Procedures of the Best Forex Brokers

    February 11, 2021

    Finding Serenity Like the Elite Forex Trader

    February 11, 2021
    Latest Posts
    Real Estate

    Thinking About Investing in Precious Metals? Here’s Your Easy-Peasy Guide!

    June 30, 2025

    With inflation hanging around, a lot of people are turning to things like gold and…

    Mississauga Real Estate in 2025: A Smart Buyer’s Guide to the City

    June 14, 2025

    Don’t Trade CFDs Without Reading This First: How to Pick the Right Broker

    May 26, 2025

    Swipe Smart: The Business Owner’s Guide to Lowering Card Processing Fees

    May 26, 2025

    Banks Keep Saying No? Try These Easy Tricks to Get Your Personal Loan Approved Fast!

    May 17, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Ads
    Investment Planning

    Investments: Expectations vs. Reality

    Life Insurance

    Here are all the Top LIC Policies to Invest in 2020

    Loan Tips

    6 Steps to Follow To Get Your Personal Loan

    Accident Insurance

    4 Reasons Why Accident Insurance Could Be the Smartest Decision of Your Life

    Personal Finance

    Tips To Plan Your Personal Finance Efficiently

    About Us

    I’ve managed to graduate college free of student loans. My mission is to make people understand importance of money management and take sound financial decisions.

    This blog is my attempt to help to be prudent while dealing with saving, debt, credit, investment, insurance, spending or any financial issue. I am here to make your financial life to be sound and secure.

    If you like the articles posted here and interested to hire me for your content writing projects, feel free to contact me.

    Our Picks

    Thinking About Investing in Precious Metals? Here’s Your Easy-Peasy Guide!

    Mississauga Real Estate in 2025: A Smart Buyer’s Guide to the City

    Don’t Trade CFDs Without Reading This First: How to Pick the Right Broker

    Picked for You

    Where to Sell Gold in Gurgaon?

    How to Use Instagram Marketing to Boost your Open House Listing

    7 Business Startup Costs to Plan for – Keep Your Startup Costs In Order

    Type above and press Enter to search. Press Esc to cancel.