Najam Mahmood - NDD Forex Brokers Vs DD Forex Brokers
Najam Mahmood will describe the various types of forex brokers in depth in this article so that you can choose the right one when you begin trading forex. For over 26 years, he has been trading forex and commodities. Also, he is a well-known Forex fund manager.
If you want to get started trading forex or CFDs, the first move is to find the right broker. Najam Mahmood will describe the various types of forex brokers in depth in this article so that you can choose the right one when you begin trading forex. For over 26 years, he has been trading forex and commodities. Also, he is a well-known Forex fund manager. If you want to learn more about forex trading, you should seek his advice.
There are two types of online forex trading platform as listed below:
- No Dealing Desk (NDD)
- Dealing Desk (DD)
- NDD Brokers: No Dealing Desk Brokers:
No Dealing Desk Brokers do not serve as counterparties for traders; instead, they link them with banks, interbank markets, liquidity providers, and other institutions so that they can trade directly on the interbank forex market.
Individual traders are too small to trade at this stage. Individual traders can enjoy this direct trading experience in the interbank market due to the NDD brokers, who serve as a link between clients and liquidity providers. True NDD platforms will not need re-quotation, and order confirmation will not be paused, allowing investors to execute real-time transactions with no restrictions.
- Dealing Desk (DD)
Market Makers are another term for Dealing Desk Brokers. A Market Maker, as the name suggests, establishes a market for clients. When a trader wants to purchase certain securities, the Market Maker will sell to the trader; when the trader wants to sell, the Market Maker will buy from the trader under certain circumstances. In other words, when necessary, market makers will trade in the opposite direction of their clients.
When trading with DD Broker, the trader's buy and sell prices are not identical to the real price in the forex market. A market maker may control prices by expanding the spread and lowering the risk of failing to fulfill a trader's order. Fixed spreads may be used by some market makers to make risk management simpler.