| Updated: January 15, 2025Forex trading has grown to become one of the most popular ways to participate in global financial markets. However, not all brokers are created equal, and the type of broker you choose can significantly impact your trading experience and outcomes. Among the different types of brokers, No Dealing Desk (NDD) brokers stand out as a preferred choice for traders seeking transparency, speed, and fair market conditions.
Below you can find a list with the best No Dealing Desk Forex brokers:
Top 8 NDD Forex Trading Brokers
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
-
Saxo Bank
- Holds a banking license
- Offers forex options and spot trading
- Minimum EUR/USD spreads from 0.9 pips
Trading Instruments- Stocks
- ETFs
- Bonds
- Mutual funds
- Crypto ETPs
- Options
- Futures
- Forex
- Forex options
- Crypto FX
- CFDs
- Commodities
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
-
Interactive Brokers
- Providing access to more than 135 global markets: Forex, Cryptocurrencies, Bonds, Commodities and Stocks
- Seamless integration with third-party research platforms and API access for automated trading and portfolio management.
- Advanced trading tools, such as algorithmic trading options, which allow professional-level trading executions.
Trading Instruments- Stocks
- options
- futures
- ETFs
- bonds
- mutual funds
- metals
- indices
- cryptocurrencies
- spot currencies
-
CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading Instruments- CFDs on Forex
- Indices
- Shares
- Commodities
- Treasuries
- Cryptocurrencies
- Share Baskets
- Investments on ETFs
- Managed funds
- Options
- and more
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| Global Prime | 0.96 avg (Standard) | $0 Standard Accounts; $7 round turn on Raw Accounts |
| Saxo Bank | 0.9 | $3 per lot |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| FxPro | 0.25 | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| Interactive Brokers | 0.1 | From 0.08 to 0.20 bps x trade size |
| CMC Markets | 0.5 | $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| Global Prime | |
$0 |
| Saxo Bank |  |
$0 Classic$200,000 + Platinum $1,000,000 + VIP |
| Pepperstone | |
$0 |
| FxPro | |
$100 |
| IC Markets | |
$200 |
| Interactive Brokers | |
$0 |
| CMC Markets | |
$0 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| Global Prime | |
1:500 (1:30 for ASIC entity) |
| Saxo Bank | |
1:30 |
| Pepperstone | |
1:30 |
| FxPro | |
1:30 |
| IC Markets | |
1:30 |
| Interactive Brokers | |
1:20 |
| CMC Markets | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| Global Prime | |
56 |
| Saxo Bank | |
185+ |
| Pepperstone | |
90+ |
| FxPro | |
70+ |
| IC Markets | |
61 |
| Interactive Brokers | |
100+ |
| CMC Markets | |
330+ |
Comprehensive Comparison of the Best NDD Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$0 |
|
0.96 avg (Standard) |
|
|
 |
$0 Classic$200,000 + Platinum $1,000,000 + VIP |
|
0.9 |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$100 |
|
0.25 |
|
|
 |
$200 |
|
0.8 |
|
|
 |
$0 |
|
0.1 |
|
|
 |
$0 |
|
0.5 |
|
In this guide, we’ll delve into the concept of No Dealing Desk Forex brokers, exploring how they work, their advantages, and how to identify the best options for your trading needs.
Understanding No Dealing Desk Brokers
No Dealing Desk (NDD) brokers provide traders with direct access to the Forex market without the intervention of a dealing desk. This approach differs from traditional Dealing Desk brokers, who act as intermediaries that may manipulate spreads or even take the opposite side of a trader’s position.
How No Dealing Desk Brokers Operate
NDD brokers facilitate transactions by routing traders’ orders directly to liquidity providers, such as banks, financial institutions, and other market participants. They act as intermediaries that connect traders to the broader Forex market rather than managing trades in-house.
Types of No Dealing Desk Brokers
- STP (Straight Through Processing): These brokers use automated systems to send orders directly to their liquidity providers. Traders benefit from minimal spreads and relatively quick execution times.
- ECN (Electronic Communication Network): ECN brokers provide access to a network of liquidity providers, displaying real-time order book data to traders. Orders are matched directly with market participants, offering tight spreads and high transparency, though a commission fee is usually charged.
Benefits of No Dealing Desk Forex Brokers
-
Transparent Pricing
NDD brokers operate with transparent pricing structures. Unlike Dealing Desk brokers, they do not manipulate spreads or act against clients’ trades. Prices reflect actual market conditions, ensuring traders receive fair and competitive rates.
-
Faster Trade Execution
Since orders are routed directly to the market, NDD brokers can offer faster execution speeds. This is particularly beneficial for traders employing time-sensitive strategies like scalping or high-frequency trading, where delays can lead to missed opportunities.
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Reduced Conflicts of Interest
With NDD brokers, the success of traders is not tied to the broker’s profits. Traditional brokers often profit from client losses, creating a potential conflict of interest. NDD brokers eliminate this by serving solely as intermediaries.
-
Variable Spreads
NDD brokers offer variable spreads based on real-time market conditions. During periods of low market volatility, traders can enjoy tighter spreads compared to fixed-spread models often provided by Dealing Desk brokers.
-
Scalping and News Trading-Friendly
For traders using scalping, news trading, or other strategies that rely on rapid execution and precise entry points, NDD brokers provide the ideal environment with minimal slippage and latency.
Challenges of Using No Dealing Desk Brokers
While NDD brokers offer many advantages, there are some potential drawbacks to consider:
- Variable Spreads During High Volatility
Although variable spreads are beneficial during normal market conditions, they can widen significantly during times of high market volatility, such as major news events. Traders should be prepared for these fluctuations.
- Commission Costs
ECN brokers, in particular, charge a commission fee for each trade in addition to spreads. This cost can add up, especially for high-frequency traders, making it important to evaluate the overall cost-effectiveness of trading with NDD brokers.
- Advanced Market Conditions
Direct access to the market can also mean greater exposure to market fluctuations and complexities. Traders using NDD brokers often require a more advanced understanding of trading conditions and risk management to succeed.
How to Identify Genuine No Dealing Desk Brokers
Selecting a reputable NDD broker is essential to enjoy the benefits these brokers offer. Use the following guidelines to identify authentic NDD brokers:
- Regulation and Licensing
Ensure the broker is regulated by reputable authorities such as:
- Financial Conduct Authority (FCA)
- Australian Securities and Investments Commission (ASIC)
- Commodity Futures Trading Commission (CFTC)
Regulated brokers must adhere to strict operational guidelines that protect traders from fraud and ensure transparent practices.
- Reputation and Reviews
Look for independent reviews and testimonials from real users. Pay attention to feedback about order execution speeds, pricing transparency, and overall service quality.
- Order Routing Information
Reputable NDD brokers clearly outline their order-routing practices and disclose their liquidity providers. This level of transparency is a hallmark of genuine NDD operations.
- Demo Account Testing
Most brokers offer demo accounts where traders can test trading conditions risk-free. This is an excellent way to verify the broker’s claims about execution speeds and spread variability.
Comparing ECN vs. STP No Dealing Desk Brokers
While both ECN and STP brokers fall under the NDD category, they have distinct characteristics that cater to different types of traders. Each offers unique benefits and potential drawbacks, making it essential for traders to understand their differences before selecting a broker that aligns with their trading style and goals.
-
ECN Brokers
- Features: ECN brokers provide direct access to a network of liquidity providers, including banks, financial institutions, and other market participants. These brokers create a transparent trading environment where traders can view live order book data, which includes active buy and sell orders. This transparency allows traders to assess market depth and liquidity more accurately, aiding in strategic decision-making.
- Cost Structure: ECN brokers typically offer extremely tight spreads, sometimes as low as zero pips during favorable market conditions. However, to compensate for the reduced spreads, they charge a commission fee for every transaction. While this fee structure might appear costly, the overall trading costs can still be lower due to the reduced spread differences, especially for high-volume traders.
- Best For: ECN brokers are ideal for professional traders, institutions, and experienced individuals who value market transparency and are equipped to handle the additional commission costs. Traders who employ strategies such as scalping, news trading, or high-frequency trading often prefer ECN brokers for their precision and speed.
-
STP Brokers
- Features: STP brokers, on the other hand, simplify the trading process by routing orders directly to liquidity providers with minimal manual intervention. They aggregate quotes from multiple sources to offer competitive prices to their clients. While their spreads are slightly wider compared to ECN brokers, they are generally stable during normal market conditions. This makes STP brokers an attractive option for traders who prioritize consistency over raw market access.
- Cost Structure: STP brokers do not charge additional commissions, as their fees are embedded within the spread. This all-inclusive pricing model provides a straightforward cost structure, making it easier for traders to calculate their expenses and manage their budgets effectively.
- Best For: Retail traders and beginners often find STP brokers more approachable due to their simplicity and lower upfront costs. These brokers are particularly suitable for traders who prefer a user-friendly setup and are not reliant on real-time market depth data.
-
Key Considerations
The choice between ECN and STP largely depends on your trading style, objectives, and level of experience. For traders focused on market transparency, tighter spreads, and direct access to liquidity providers, ECN brokers may be a better fit despite the added commission fees. In contrast, those seeking simplified processes, predictable costs, and a more beginner-friendly experience may find STP brokers more suitable.
Additionally, traders should consider their strategies when choosing between these two types of brokers. For instance, short-term and high-frequency strategies often benefit from the precision and speed offered by ECN brokers. Meanwhile, medium- to long-term traders might prefer the stability and simplicity of STP brokers. Understanding the nuances of these broker types can significantly impact trading efficiency and profitability, so evaluating these options carefully is crucial before committing to a trading platform.
Best Trading Strategies for NDD Brokers
- Scalping
NDD brokers’ fast execution speeds and tight spreads make them ideal for scalping strategies, where traders aim to profit from small price movements.
- Day Trading
With NDD brokers offering real-time market access, day traders can effectively manage intraday trades by leveraging tight spreads and precise execution.
- News Trading
News events often cause rapid price movements. NDD brokers’ transparency and execution speeds enable traders to capitalize on these opportunities with minimal slippage.
- High-Frequency Trading
Automated trading systems designed for high-frequency trading benefit significantly from NDD brokers’ robust infrastructure and direct market access.
FAQs About No Dealing Desk Brokers
Are NDD brokers better than Dealing Desk brokers?
NDD brokers eliminate potential conflicts of interest, offering greater transparency and faster execution. However, their suitability depends on your trading style and priorities.
What are the typical costs associated with NDD brokers?
Costs may include variable spreads and, for ECN brokers, a commission fee per trade. Evaluating the overall pricing structure is essential to ensure cost-effectiveness.
Can beginners use NDD brokers?
Yes, though NDD brokers often require traders to have a basic understanding of Forex markets due to the direct access to live market conditions.
Are all NDD brokers regulated?
No. It’s crucial to verify a broker’s regulatory status before trading to ensure safety and reliability.
Conclusion
No Dealing Desk Forex brokers represent a modern and efficient way to trade in the global Forex markets. By eliminating the need for dealing desk intervention, these brokers provide traders with transparent pricing, faster execution speeds, and a conflict-free trading environment. Whether you prefer the low-cost simplicity of STP brokers or the transparent access offered by ECN brokers, NDD platforms cater to a wide range of trading styles and goals.
Understanding how NDD brokers work and evaluating their features is key to making an informed choice. By selecting a reliable NDD broker, you can elevate your trading experience, gain access to real market conditions, and take your strategies to the next level. Start exploring NDD brokers today and unlock the true potential of Forex trading!
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.