No Dealing Desk

In 2007, FXCM introduced No Dealing Desk (NDD) execution for forex transactions. Our aim was to provide a more efficient and fair model for pricing and execution than the model used by most dealing desks brokers in the forex industry. We achieved that goal: NDD prices are competitive and market-driven, and NDD execution is transparent and fair.

Major Benefits

  • Raw spreads from liquidity providers1
  • Anonymous order execution (price providers cannot see your stops, limits, or entry orders)
  • No trading conflict of interest between broker and trader
  • No re-quotes2; no dealer intervention
  • No restrictions on the strategy you use (scalp, trade the news, use any EA)
  • Potential Price Improvements on all order types

How Does it Work

Pricing

In the NDD model, FXCM acts as a price aggregator. We take the best available bid and best ask prices from our liquidity providers and stream those prices to the platforms we provide. That's the price you see. FXCM's liquidity providers include global banks, financial institutions, and other market makers. This large, diverse group of liquidity providers is one of the things that make this model special.

When you trade with a standard Dealing Desk, you may not know where the prices are coming from or if they actually reflect prices in the broader market. FXCM's deep and diverse pool of liquidity providers helps to ensure that NDD prices are reliable - not set by a single provider - and that they do reflect the broader forex market. Also, through competition, the NDD model ensures that prices are market-driven and fair. FXCM rewards liquidity providers with order flow when they provide the best bid or ask prices. The more advantageous their prices are the more order flow the liquidity provider will receive. The less advantageous, the less order flow they will receive. This efficient selection method keeps a single liquidity provider from adversely affecting your price.

Execution

FXCM does not take a market position, eliminating a major trading conflict of interest. Dealing Desk brokers may actively trade against your positions. They can profit when you lose. Alternatively, they may lose when you profit. Because of this, Dealing Desk brokers are incentivized to manipulate your orders. They may for example place restrictions on stops and limits or re-quote your orders. FXCM's NDD execution model does none of this. Your orders automatically fill from the NDD price feed, which is the best available bid and best ask prices from all of our liquidity providers. Additionally, your orders are anonymous to the liquidity providers. They cannot see your stops, limits, or entry orders; they only see market orders coming from FXCM.

1 Execution Disclaimer: When trading Forex on both FXCM's Dealing Desk and No Dealing Desk (NDD) execution models, FXCM is the final counterparty to these transactions. In both execution models FXCM aggregates the bid and ask prices from a pool of liquidity providers. With NDD execution, the quotes that are displayed on FXCM's platforms are the best available direct bid and ask quotes received from liquidity provides. In some circumstances, depending on account type, a markup will be added to the spread. Aside from the spread between bid and ask prices, with NDD execution, the only trading cost is a fixed lot-based commission applied by FXCM at both the open and close of the trade. On the Dealing Desk execution model FXCM can act as the dealer on some or all currency pairs. There are also back up liquidity providers that fill in whenever FXCM does not act as the dealer. Please note that FXCM's Dealing Desk employs fewer liquidity providers than the No Dealing Desk execution option.

For more information, see our Execution Risks. Please note that contractual relationships with liquidity providers are consolidated through the firm's U.S. affiliate, Forex Capital Markets, LLC. Forex Capital Markets, LLC maintains agreements with multiple price providers and in turn provides technology and pricing to the group affiliate entities.

2 No Re-quote Policy
FXCM maintains a no re-quote policy. Circumstances exist based on order size, trading pattern, and market conditions where individuals may not receive execution at the requested rate. Orders are executed at the next available rate within the trader's parameters, subject to market conditions. The difference between the requested rate and final execution price may be more or less advantageous based on the market activity and available liquidity.