FxBrokerReviews.org – There are two types of online forex brokers that you will come across in the forex market. A Dealing Desk broker and a No Dealing Desk.
A Dealing broker or market maker creates a market for clients. The buy and sell prices that are displayed for the traders sometimes are not the same as the actual price in the forex market. Here comes the role of a Dealing broker. It controls prices by either widening the spread or reducing the risk of completing a trader’s order.
While on the other hand, A No dealing desk broker (NDD) is forex brokers that are not market makers. They do not provide dealings to the traders and instead connect traders with Banks or liquidity providers so traders can trade directly in the forex market.
Also read: What is Forex?
Forex traders who want competitive rates tend to an NDD forex broker. Finding the best regulated NDD forex broker requires research and comparison of various trading platforms. We have reviewed the top NDD brokers for you to compare. Let’s get started.
What is an NDD broker?
Before we review some of the best forex brokers UK, let us first understand what does an NDD broker mean and what functions it provides?
An NDD broker or No dealing desk broker provides a direct connection between the trader and the market to buy or sell financial instruments. The broker simply connects the traders to the interbank market, where banks trade against each other. An NDD forex broker does not use a Dealing Desk and offers straight-through processing (STP) of forex trades.
Also read: Best STP Forex Brokers in 2022
Forex brokers that use NDD usually make their money by charging commissions or increasing the value of spreads. Therefore, traders who choose an NDD forex broker get variable spreads, as it keeps fluctuating according to the market activity.
What is the best forex broker that are not market makers?
We have curated a list of the 10 best NDD forex broker, based on fees, asset selection, and availability of tools on the platform. Read below to check out:
- Vantage: Best NDD multiple-asset trading platform
- Pepperstone: overall best forex broker in UK
- XTB: Best mobile platform broker
- FBS: NDD forex broker with high leverage
- Admiral Markets: best regulated NDD forex broker
- IC Markets: best forex broker UK for lowest spreads
- FxPro: Trusted NDD Broker
- FP Markets: NDD Broker with high performance and fast execution speeds
- Eightcap: Award-winning NDD Forex Broker
- Libertex: NDD Forex Broker With Proprietary App
Best NDD forex brokers UK 2022
1. Vantage
Vantage Markets is an ECN forex broker as well as an STP forex broker. The trading platform gives multiple assets to trade from and offers various currency pairs to trade. Through no deal desking the broker allows traders to benefit from getting the best market prices without routing trades through a dealing desk. Vantage Markets also has access to different trading platforms like the MT4. It is a forex broker with high leverage up to 1:500 and low commissions.
Pros
- Charges low forex fees
- The platform does not have any inactivity charges
- It is a multi-asset trading broker
- Regulated broker
- Gives access to MT4, MT5,webtrader, and more
Cons
- Charges high stock CFD fees
- Lacks good customer service
2. Pepperstone
With extremely low spreads and tight commissions, Pepperstone secures a reputed position as the best NDD forex broker. The trading platform is known for its quality educational resources and low trading charges. Moreover, the platform allows traders to get access to scalping, trading bots, and hedging. Pepperstone provides clients to maintain diverse portfolios through trading in stocks commodities, and even cryptocurrencies.
Pros
- Highly regulated trading platform
- Gives access to multiple educational resources
- Supports copy trading and provides fast execution
- Access to trading platforms like MT5, MT4, and webtrader
Cons
- Does not have an interactive MT4 platform
Also read: Pepperstone Broker Review 2022
3. XTB
XTB is considered to be one of the best forex brokers UK in terms of CFD trading. The platform offers over 2,100 financial instruments including 48 forex pairs. Moreover, for the ease of traders, the platform also has its mobile application known as the xstation which is available for Android and iOS devices. the mobile app also supports third-party software like MT4 and MT5.
With 0% commission in trades and 24×7 customer support, XTB stands as a good choice for an NDD forex broker.
Pros
- Low trading fees
- Offers fast execution speed
- Excellent customer support
- User-friendly mobile interface
Cons
- Does not accept US clients
Also read: XTB Broker Review 2022
4. FBS
FBS has gained huge popularity amongst new traders for being a multi-asset platform with tight spreads. It is a forex broker with high leverage and even provides negative balance protection to provide security from the high leverage. The NDD trading platform directly routes all trades to liquidity providers instead of keeping the orders internally, making it a secure forex broker. The platform is regulated by bodies such as ASIC, and FSCA in South Africa.
Pros
- Offers more than 43 currency pairs
- Swap-free accounts are available
- Well-regulated forex broker
- Provides quality educational content
Cons
- Charges high commission
- Not suitable for short-term trading
Also read: FBS Broker Review 2022
5. Admirals
Admiral is a high-rated and one of the best-regulated NDD forex brokers in the market. The broker is registered and licensed by the Australian Securities and Investments Commission (ASIC). Admiral Markets operates in more than 40 countries and gives access to trade over 45 currency pairs. It is a suitable broker for beginners as well as experienced traders as it has plenty of educational resources along with advanced tools and indicators for market analysis.
Traders can benefit through its mobile app as the app has several advanced features, such as automated trading, level 2 data, and advanced risk and volatility management to boot.
Pros
- Fast and free withdrawals
- Low trading fees
- Easy account opening process
- Plenty of educational resources
- Advanced MT4 service
Cons
- Lacks proper customer service
- Charges inactivity fees
6. IC Markets
IC Markets is among the top NDD brokers in the forex market. The platform provides lightning-fast execution speed and offers low spreads starting from 0 pips. Furthermore, IC markets even charge low commissions to trade all assets.
A trading platform is a good option for high-volume traders as it provides features like scalping and advanced chartings. For beginners, the platform offers an unlimited demo account that helps them to learn trading strategies and market analysis.
Pros
- Offers the lowest spreads among all brokers
- Requires no minimum deposit
- Provides an unlimited demo account
- Customer support is available 24X7
Cons
- Has a limited number of assets to trade.
Also read: ICMarkets Broker Review 2022
Benefits of using an NDD forex broker
Trading with an NDD forex broker has numerous benefits. Let us look at some of the benefits that traders can avail themselves:
- An NDD forex broker provides traders access to current market prices
- A No Dealing Desk broker has variable spreads, therefore the spreads are usually lower than the DD brokers.
- The speed of execution provided by an NDD forex broker is much faster than a DD provider.
- Since the broker connects the traders directly to the banks and the market there are fewer chances of getting into any conflict with the broker.
- All trades are executed anonymously and therefore, there is an extra layer added to the privacy and security of the traders.
Risk of working with an NDD forex broker
If you are using an NDD broker then in most cases you have to pay a small commission fee to buy or sell any financial instrument. Apart from that, there are various other risks involved when trading with a No dealing desk broker:
- Since the brokers have a variable system of spreads, it can lead to unfavorable returns in times of market volatility.
- Sometimes, there is even a lack of guarantee about whether or not your order will be filled.
- The broker will charge you a commission for carrying out any trade. The amount of commission can depend on the broker and the type and lot of trade.
- Trading with an NDD broker requires you to submit a large amount of initial deposit money.
What is the difference between STP and ECN forex broker?
NDD brokers include two types of brokers
- Straight Through Processing (STP) Forex broker
- Electronic Communication Network (ECN) Forex Broker
Let us understand them one by one:
1. STP forex broker:
The STP (Straight Through Processing) requires no dealing desk as the broker acts as a silent connection provider between the trader and the market. The prices in STP brokers are set at the bid/ask rate, which is provided by liquidity providers. Liquidity providers here are banks, hedge funds, and investors. STP also gives access to Direct Market Access. A DMA refers to filling orders at the best possible price as brokers connect traders directly to investors and banks.
STP brokers benefit traders as they provide the most variable spreads. Having variable spreads helps to select the best bid and ask prices from liquidity providers. STP is suitable for traders due to its lightning speed, and scalping.
2. ECN Forex Broker:
There isn’t much of a difference between an STP forex broker and an ECN forex broker. But what sets them apart is the way of routing. ECN, unlike STP which acts like a pool of liquidity, is a hub where all the liquidity providers are interconnected. Liquidity providers such as banks, hedge funds, and investors all are interconnected to find counterparties for the orders. One disadvantage of ECN trading is that the trading is capped at a 0.1 minimum lot size, making it difficult for inexperienced traders who need to trade with smaller amounts of money. To solve this problem, a hybrid model of STP and ECN has been developed.
Also read: Best ECN Forex Brokers in The United Kingdom 2022
How to trade with an NDD forex broker?
If you are still searching for the best NDD forex broker UK, it is also important that we discuss how to trade with a broker of this kind, we have taken the example of NAGA a leading forex trading broker.
Step 1: Open an Account
Head to the NAGA website and click on the ‘create account button. To create an account, you will have to provide details like your name, DOB, email, country of residence, and other details that are mandatory for account registration. It just takes a few minutes to open an account with NAGA.
Step 2: Verify Account
Once you have filled in all the registration details, the next step is to get your documents verified to start live trading. The site will ask for a verification process that requires your valid government-issued documents from your country of residence. Carefully submit all your documents and double-check your data before you confirm.
Step 3: Deposit your Funds
When your account has been verified, start depositing funds as per your requirements. If you are trading with a demo account you don’t need to deposit funds right away. To start live trading click on ‘deposits’. Choose your payment method, enter the payment information, and select how much you want to deposit.
Step 4: Open a Position to buy or sell
To start trading, search for the financial instrument that you want to trade. Select the volume you want to trade and take into consideration of the profit parameters. Once you are ready, click on the green ‘buy’ button to start your trade.
Which is better NDD or DD broker?
NDD brokers or also referred to as forex broker that is not market makers have variable spreads, but charge commissions for trading. While variable spreads come with the benefit of low trading charges, it also possesses a risk due to the volatility of the market.
On the other hand, DD or the market makers do not charge any commission but have fixed spreads. This allows you to clear your profit and loss at your traded prices rather than paying a commission out of the profit you have earned. The disadvantage here is that spreads charged can sometimes be quite high and more than the profit you make.
Therefore both the forex brokers have their plus points and flip sides. Which one is better depends on your trading style and willingness to take market risk.
Final thoughts
NDD forex broker offers trading by directly connecting the traders with the market or the network of liquidity providers. There is a variety of NDD forex broker in the market that offer tight spreads and low commission trading.
Forex broker reviews have prepared a complete list of the best NDD forex brokers UK based on their pricing, asset offerings, regulation, and more. The ultimate decision depends on the trader’s preference and trading requirements.
