Types of Forex brokers

There are several basic schemes by which dealing centers (brokers) carry out trading on the Forex currency exchange.

The risk of losing your money sometimes directly depends on the trading options, so you should approach this issue with special attention and try not to work with “kitchens” when trading large volumes.

It should be noted right away that there are practically no brokers with one option for dealing; usually the division is carried out by account type.

Therefore, when choosing a dealing center, also pay attention to what kind of account you are opening. It is clear that no one will bring cent accounts

And so the main types of brokers.

Dealing Desk (DD) – trading in this case is carried out on an artificially created exchange platform, this does not mean that the company will constantly play against you.

Trouble can happen if you decide to open a large trade of several hundred lots and start making a profit.

As soon as clients' losses on counter trades no longer cover your profits, the trade will be artificially closed. Therefore, you can trade with rockers with the Dealing Desk (DD) without risking anything, only on cent accounts or with small amounts.

No Dealing Desk (NDD) – these types of Forex brokers carry out transactions outside the company, and this does not mean that they necessarily transmit your orders to the currency exchange.

An alternative option would be to enter into agreements with large banks, which will shape the market. The method of transmitting orders and quotes also plays an important role; trading can be carried out via:

• Electronic Communications Network (ECN) – a fully automated signal transmission system that virtually eliminates outside interference in the trading process.
• Straight Through Processing (STP) – the second of the options for electronic data processing, in no way inferior to the one mentioned above, and in some respects even superior to it.

And in conclusion, I would like to name a few brokers who use the No Dealing Desk system, or rather have ECN accounts or trade using STP:

EXNESS Limited - deposit from 100, spreads from 0.1, automatic withdrawal of funds, no requotes.

Alpari – no initial depot, recommended $10, one of the oldest and largest brokerage companies.

RoboForex – along with cent accounts, there are also ECN accounts with various execution options and spreads.