Today, we are going to look at some of the best No Dealing Desk brokers. But first, we must understand what no dealing desk brokers mean. Dealing desk brokers usually take the opposite side of a client’s order to complete a trade. In contrast, non dealing desk brokers connect client orders directly to the interbank market to complete trades. The interbank market is an informal market that connects banks and allows them to borrow from and lend to each other. No dealing desk brokers connect clients to this market ensuring instant execution of trades with live market prices.
There are a number of advantages and disadvantages associated with these kinds of traders. Below are some of them.
Advantages of No Dealing Desk Brokers
- Direct execution of orders on the interbank market.
- Fast execution of orders. This ensures that traders do not miss out on potentially profitable trades.
- No dealing desk brokers usually feature variable spreads. This can lead to cheap trading fees.
- No dealing desk brokers are usually more transparent in trading. This assures clients that there is no price manipulation or shady operations behind the scenes.
Disadvantages of No Dealing Desk Brokers
- Variable spreads can lead to higher trading fees.
- No dealing desk brokers usually charge a commission on trades.
Our Criteria For the Best No Dealing Desk Brokers
In this review, we will consider the following while choosing our best no dealing desk brokers:
- The forex broker must use the no dealing desk model. This is a given.
- The trading fees involved. We always have to consider the trading fees on a platform.
- Trading instruments available. A wide variety of trading instruments is a bonus for any broker.
- The regulatory status of a broker. Regulated brokers are more reputable in the market than unregulated ones.
Now, with that out of the way, let’s look at some of the best No Dealing Desk brokers in the world today.
XM is one of the most reputable no dealing desk brokers in the market today. Founded in 2009, XM has a favourably long history of providing brokerage services to traders worldwide. The company has regulations from three of the best regulatory organizations in the market today. These include the FCA, the ASIC, and the CySEC. The company is also on the register of BaFin and CNMV, among others.
XM allows clients to trade forex and CFDs on Stocks, Stock Indices, Oil and Gold on industry-standard trading platforms. Both the MT4 and MT5 platforms are available to traders on XM. Mobile users can also trade these instruments using the XM App available on both android and iOS. This ensures that XM accommodates traders of all kinds. The spreads on XM are industry standard and competitive. In fact, XM features some of the lowest spreads in the market today. There are three account types that come with different spreads. For example, the standard account has spreads as low as 1.0 pips for major currency pairs. In contrast, the spreads can go as low as 0.6 pips on the XM Ultra Low account.
XTB is another company that has been in the market for a long time now. The company has close to 20 years of serving traders in financial markets. This makes it a prime investment platform for traders. Furthermore, XTB has regulations from several regulators, with two being tier-one regulators. The organizations that regulate XTB include the FCA, the CySEC, the KNF, and the IFSC.
XTB also offers brokerage services by connecting client orders to liquidity providers. The company operates on a no dealing desk model, giving clients access to the interbank market. Aside from forex currency pairs, XTB allows investors to trade indices alongside CFDs on cryptocurrencies, commodities, shares, and ETFs. Fortunately, XTB does not charge traders hefty fees. The primary charges on XTB are the spreads. They vary depending on the account you are using on XTB. For example, the lowest spread on the Standard account is 0.5 pips, while on the Swap Free account, it is 0.7 pips. Evidently, these are some of the lowest spreads in the market.
The trading platform that XTB offers is also industry-standard. Clients have access to the xTrader 5 platform that is built by XTB itself. This is an intuitive platform with fast execution times. Hence, it is suitable for all kinds of traders, whether experienced or inexperienced.
81% of retail investor accounts lose money when trading CFDs with this provider.
FP Markets is one of the best no dealing desk brokers in the forex industry today with tons of investment options. The company allows clients to trade major markets including Forex, Indices, Shares, Commodities, Metals, Cryptocurrency and Bonds. They can also trade CFDs on Forex, Shares, Metals, Indices, Commodities and Crypto. Investors do this on industry-standard trading platforms, including the MT4, MT5, Iress, WebTrader and Mobile App. Remember that CFD trading comes with a lot of risks. The majority of the traders trading CFDs end up losing their funds. Make sure you understand the risks before you invest.
FP Markets has licenses from CySEC in Cyprus and ASIC in Australia. These are two reputable regulators keeping the company in check. While regulations are not proof of a straight company, you’re much safer trading with regulated brokers Especially companies with regulations from multiple tier-one regulators.
In terms of trading fees, the spreads are the primary charges clients pay on FP Markets. Luckily, FP Markets has some of the lowest spreads in the market. There are two main accounts on FP Markets. These include the Standard account and the Raw account. The Standard account allows clients to trade on spreads as low as 1.0 pips with no commissions. In contrast, the Raw account features spreads as low as 0.0 pips and a commission of $3 per side per lot.
75.3% of retail CFD accounts lose money
FXTM is one of the best ECN brokers in the market today. This means that it does not use a dealing desk to execute orders. FXTM provides clients with the best trading platforms in the market with the MT4, MT5, and FXTM Trader trading platforms at their disposal. There is also a variety of markets to invest in on FXTM. Traders can invest in forex, metals, commodities, indices, forex indices, stocks, stock baskets, and stock markets (CFDs). All kinds of traders are catered for on this platform. Investors can buy and sell trading instruments from several markets at the same time. This is a great way to diversify their portfolios.
There are three main trading accounts on FXTM. Two of these are spread based while one is a commission-based account. The three trading accounts available on FXTM include the Micro account, the Advantage account, and the Advantage Plus account. The Micro account and the Advantage Plus account both feature spreads starting from 1.5 pips upwards. On the other hand, the Advantage account features average commissions of about $0.4 to $2 based on the volume.
Finally, FXTM is a regulated company in two of the most heavily regulated forex markets. The company is regulated by the FCA in the UK and the CySEC in Cyprus. These are two of the best financial regulators in the industry. Such regulations help improve the image of the company among traders.
Pepperstone is another no dealing desk broker offering great features to clients. For starters, There are over 1,200 CFDs available for trading on Pepperstone. Clients can trade CFDs on forex, shares, ETFs, indices, commodities, and currency indices. This variety of trading options is a characteristic of professional brokers who want to accommodate all kinds of traders.
There are three main trading accounts on Pepperstone. The major trading account offers clients spreads ranging from 0 to 1.59 pips for some major currency pairs. Pepperstone also offers two commission accounts depending on the trading platform the client prefers. For instance, clients on the MT4/MT5 Razor account pay a commission of $3.50 per side per lot. On the other hand, clients using the cTrader commission account pay a commission of $3 per side per lot. Another attractive feature of Pepperstone is its regulatory status. The FCA regulates this broker in the UK, BaFin in Germany, and the ASIC in Australia. These are some of the best regulators in the market. You are always safer investing with companies with regulations from reputable institutions.
IC Markets also makes it to our best no dealing desk brokers list. It matches client orders directly to the Interbank market while providing a plethora of attractive features. IC Markets has three main accounts: the Standard account and two Raw Spread accounts. The Standard account allows clients to trade on Spread based conditions. The spreads on this account start from 0.6 pips for major currency pairs.
On the other hand, the Raw Spread accounts feature a commission when trading. One of the accounts is only available on the cTrader trading platform. This account features a commission of $3 per $100,000 traded and spreads starting from 0.0 pips. The other account is available on the MetaTrader platforms. This account comes with a commission of $3.5 per side per lot. Investors can trade CFDs on commodities, indices, over 65 currency pairs, futures, stocks, and metals. Seeing this, traders interested in diversifying their portfolios will not have to leave IC Markets to invest in multiple markets. This is a bonus for all kinds of traders.
Finally, we look at the regulatory status of IC Markets. This broker is regulated by three main regulators. They include the CySEC in Cyprus, the ASIC in Australia, and the FSA in Seychelles. The CySEC and the ASIC are two of the best regulators in the industry. Still, regulation on its own is not assurance that a company does not operate criminally.
FBS is a forex and CFD broker that has over 20 years of operation. Such longevity is very attractive to traders. This company operates under the regulation of the ASIC, the CySEC, the FSCA, and the IFSC. Trading using a regulated broker is always safer than trading with an unregulated one. FBS also operates a no dealing desk operation. It allows clients to invest in 28 different currency pairs, 4 metals, and CFDs on indices, commodities, stocks, and energies. FBS connects client orders directly to liquidity providers without the need for a dealing desk. Note that CFD trading comes with a lot of risks. The majority of the traders trading CFDs end up losing their funds. Make sure you understand the risks before you invest.
The trading software available to clients using this account includes both MT4 and MT5. These are two of the most popular trading platforms on the planet. They are great for all kinds of traders as they come with charting tools and automated trading. Finally, FBS provides clients with three different spread structures. Depending on the account a client is on, the spread can be floating, starting from 0.2 pips, or it can be fixed starting from 3 pips. Further, clients can trade on the zero spread account with 0.0 pips and pay a commission.
Conclusion on the Best No Dealing Desk Brokers
In this review, we looked at some of the best no dealing desk brokers in the world. All the brokers on this list are well-regulated by some of the best financial regulators in the market today. Additionally, these brokers offer some of the best trading conditions to their brokers. For starters, the fees are not exorbitant with some of the lowest spreads in the space.
Additionally, these brokers allow clients to invest in multiple market instruments all under one roof. This is a common characteristic among tier-one brokers. Further, these brokers offer the best trading platforms to their traders. Still, this is not an exhaustive list. There are many other brokers who could have made this list. We encourage you to do your own research before you invest. The brokers on this list are a good place to start with your research.