Dealing Desk stock trading
There are several options for organizing currency trading, one of these options is the Dealing Desk, it is used mainly by young brokerage companies or when working with small volumes of transactions.
Dealing Desk – trading on the broker’s internal platform, without transmitting orders to external markets.
All transactions are concluded between clients of this broker or directly with the participation of the company itself that organized the trade.
This is the easiest way to organize trading; if trading takes place on the Dealing Desk, then transactions are not transferred to the external market, but find counter orders on the internal platform. The liquidity provider here is the dealing center ; it buys out orders that have not found a counter offer among traders.
It is the fact that the broker is at the same time the second party to the transaction and controls its conditions that is the basis for various frauds.
The company is not interested in the trader’s winnings and tries in every possible way to prevent the completion of the transaction with a profit. This does not always happen, but only in cases when we are talking about trading in large volumes, more than 10 lots. An equally important indicator is the liquidity of the currency pair you have chosen; for less liquid instruments, the broker often has to act as the second party to the transaction. In addition, it should be noted that in Forex you will practically not find pure Non Dealing Desk brokers who trade exclusively on an external exchange. Basically, the distribution of account types is carried out according to the following principle:
Dealing Desk – all cent accounts and some standard ones, on which it is possible to trade with a minimum lot of 0.01.
Non Dealing Desk – accounts are designed for large clients and large trading volumes; as a rule, the minimum deposit here is at least $100. The best option for this is ECN accounts - https://time-forex.com/vsebrokery/ecn-brokery
Therefore, when choosing a broker, pay attention to such an aspect as the type of account you open, because even in the largest and most famous company you can easily end up on a Dealing Desk account.