Dealing desk (DD) broker


    What is a dealing desk broker?

    Brokers that operate as dealing desk brokers act as the counter-party of their clients’ trades.

    The broker sets a bid and ask price at which they are willing to buy and sell. This way, the broker’s clients are always able to fill trading orders. Dealing desk brokers are therefore also market makers.

    Because the dealing desk broker is the counter-party to their client’s trades, it may seem as if there is a conflict of interest. However, this is not necessarily the case because the broker publishes the price at which they are willing to buy and sell, and the trader can accept or reject these terms.

    Orders placed with a dealing desk broker will rarely reach the interbank market and are most likely to stay within the confines of the broker’s own liquidity pool.

    Dealing desk brokers make money by buying at lower prices and selling at higher prices. This allows them to make money in both rising and falling markets by simply taking advantage of the spread between the bid and ask price. It also means they can offer their clients fixed spreads.

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