Every other day or so I get an email from a trader (or prospective trader) requesting the name or names of one or more non-trading, non-dealing desk brokers. Those who have read through my entire blog know that providing that information would turn this blog into a commercial project and that’s just not something I’m going to allow to happen. To my way of thinking there’s even a better reason not to provide the names of specific providers. Traders who are looking for a shortcut to success are more than likely to find themselves overcome by the need for immediate gratification when they start trading and that character flaw isn’t likely to serve them well. And doesn’t it stand to reason that a trader who is more concerned about getting in the game than winning the game doesn’t stand much chance of success?
So how does one determine if a broker is offering traders access to the Forex through a non-dealing desk? It’s simple. If the broker offers fixed spreads, keep looking.
Also keep in mind that there is at least one “non-dealing desk” broker purportedly offering interbank trading for mini’s. Their offering has yet to prove itself to be legitimate. Since the administrative costs associated with handling mini’s far exceeds those associated with the handling of standard lots, mini trades are more than likely being forwarded to and pooled by their clearing bank’s dealing desk and this obviously invalidates the offer of direct market access. The broker may be able to lay claim that it is operating a non-dealing desk, but the clearing house it’s forwarding the mini’s to clearly can't.
Home
