The first step in choosing a forex broker is finding out what your choices are. You don’t just walk into a restaurant, knowing what to order broker Forex away, do you? Not unless you’re a frequent customer there, of course. More often than not, you check out their menu first to see what they have to offer.
Dealing Desk brokers are also called Market Makers. What is a Dealing Desk Broker? Dealing Desk brokers literally create a market for their clients, meaning they often take the other side of a clients trade. While you may think that there is a conflict of interest, there really isn’t.
Also, clients of dealing desk brokers do not see the real interbank market rates. The competition among brokers is so stiff that the rates offered by Dealing Desks brokers are close, if not the same, to the interbank rates. USD for 100,000 units with your Dealing Desk broker. To fill you, your broker will first try to find a matching sell order from its other clients or pass your trades on to its liquidity provider, i. By doing this, they minimize risk, as they earn from the spread without taking the opposite side of your trade. However, in the event that there are no matching orders, they will have to take the opposite side of your trade.