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Compare the best no dealing desk forex brokers in 2023

Q: Is it better to use a NDD or DD forex broker?

Each has its own benefits and disadvantages so it will depend on your trading style and individual circumstances. NDD brokers have variable spreads and commissions so each time you buy or sell you’ll pay a fee. You will also run the risk of spreads widening during volatile conditions. DD forex brokers have fixed spreads and zero commissions. Each time you buy or sell you will know exactly what your spread is and how much it will cost. On the flip side your broker may take the opposing side to you and act as a counterparty.

Q: What is the best NDD forex broker?

Our forex trading experts have selected Pepperstone as the best NDD broker. However all of the brokers listed in our comparison above are an excellent choice and should be considered.

Q: How much commission will I pay on a NDD broker?

Each platform will have its own fee structure so it’s difficult to give a definitive answer. However, the average commission charge on forex trading is around $3.50 RT per standard lot. That means if you open a standard lot size trade you will expect to pay $3.5 when you open and $3.5 when you sell for a total of $7.

Q: Do STP and ECN accounts use a dealing desk?

No, both straight through processing, and electronic communication network based accounts do not use dealing desks. STP brokers route trades directly to liquidity partners which often include banks and hedge funds. Trades are executed at the bid/ask rate provided by the liquidity partner the broker chooses to use. ECN accounts are similar but the main difference is the way trades are routed. ECNs also use liquidity partners; however they act as a ‘hub’. The hub includes all liquidity sources like banks and hedge funds. All the liquidity sources are connected and ‘talk’ to each other meaning there is always a counterparty for an order.

No dealing desk forex brokers give direct access to market prices and do not take the other side of your trade and. This page explains how NDD brokers work and compares the best ones

By: &

Updated: Aug 5, 2023

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This guide teaches you everything about no dealing desk (NDD) forex trading brokers. We explain what they are, how they work, and compare the best platforms to use right now. Read on to learn more about NDD brokers.

Best NDD forex brokers overall for 2023

eToro: Best for beginners, copy-trading & demo-account
Capitality: Best for trading like a pro

What are the best no dealing desk forex brokers?

Below is a selection of the best no dealing desk forex brokers you can use. They have all been selected by our trading experts and are the top brokers to use for the best prices and direct access to the market. Click on any of the links to register in a few minutes or read on to learn more about NDD forex brokers.

Top 6 NDD forex brokers, reviewed

1. eToro. Best for beginners, copy-trading & demo-account

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1500

No. assets

$10

Minimum deposit

Forex

Platform type

Pros & Cons

Great for beginners, simple to set up and get started Zero commission stock trading Popular ‘CopyTrader’ function lets you follow top traders Excellent customer service, with live chat support provided Over 2,000 CFDs available to trade

Comparatively high fees for withdrawals and account inactivity Does not integrate with the MetaTrader platform High spreads on some assets

Overview

We love eToro because it’s an easy place to trade the currency markets. Forex can be intimidating, but eToro strips back the complexity to give you a platform where you can trade 50+ currencies at competitive prices and with up to 30x leverage.

As well as being a broker that offers lots of investor protection, eToro offers a very social trading experience. You can easily see how all the major and minor forex pairs are performing every day, track how investors feel about every one of those currencies, and copy other people’s trade suggestions from your desktop or the eToro app.

The fees: eToro charges a fee on currency CFD trades through the spread. Spreads are variable depending on the currency and start from 1 pip for EUR/USD trades, 1.5 pips for EUR/GBP, and 2 pips for GBP/USD. Overnight and weekend fees apply.

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77% of retail CFD accounts lose money.

2. Capitality. Best for trading like a pro

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...

No. assets

...

Minimum deposit

Forex

Platform type

Pros & Cons

Trade 2000+ CFDs in six markets Access institutional quality web trading platform Comprehensive market knowledge and education section

Unregulated offshore broker registered in St. Vincent and the Grenadines Relatively high initial deposit required

Overview

We love Capitality because it gives regular investors the means to trade with pro data and tools. Capitality offers 2100+ financial instruments, including 80 currency pairs.

The Capitality web trading terminal gives you access to live market data, real time quotes, and super-fast trade execution, all without needing to download anything. There’s also a free economic calendar that lets you know when the big financial events happen so you can plan your trades accordingly.

The fees: Capitality charges its fees through the spread. Spreads start from 0.1 pips for major forex pairs but can be significantly higher for minor and exotic pairs.

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What is a no dealing desk forex broker?

A no dealing desk broker offers straight-through processing (STP) of forex trades. Simply put, it connects its customers to the interbank market – where banks trade against each other. STP brokers do not route trades through a dealing desk and never take the opposing side of a trade; you trade directly with other people on the market.

When trading forex using a NDD broker, the spreads are variable and fluctuate in line with market activity. Brokers using a NDD make their money through commissions or by increasing spreads to mark up prices. This is in contrast to dealing desk brokers who have fixed spreads and act as a counterparty to their customers’ trades.

What are the risks of using a NDD forex broker?

The obvious benefits of using a NDD broker are you’ll be trading with the best prices from numerous liquidity pools. However, it’s important to weigh up the risks, which include variable spreads and more volatility. Here are a few of the benefits and risks of using a no dealing desk forex broker:

Benefits

Access to current market prices
Spreads are generally lower than DD brokers
Faster execution
No conflict of interest between broker and trader

Risks

Variable spreads can mean unpredictability in times of high volume
There is no guarantee that your order will be filled

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Methodology: How did we choose the best NDD forex brokers?

Each broker on this page was selected following an evaluation process completed by our forex trading experts. This included opening an account, making a deposit, placing a trade, and withdrawing funds. Our tests also included exploring each platform’s website and using any additional tools or features on offer.

In comparing each broker we used a combination of online reviews and our own research. No broker influenced any of our rankings, however we may on occasion receive an affiliate commission if you click on a link and register an account.

FAQs

Is it better to use a NDD or DD forex broker?

What is the best NDD forex broker?

How much commission will I pay on a NDD broker?

Do STP and ECN accounts use a dealing desk?

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Sources & references

Risk disclaimer

Prash Raval

Financial Writer

When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a... read more.

James Knight

Editor of Education

James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the... read more.