Without a doubt, the great offer of Forex brokers and CFD that exists today significantly hinders the process of selecting a suitable online broker to open an account and operate in the market. Both beginner operators and experienced operators are overwhelmed by the increasing number of companies in this sector that seek to differentiate themselves from their competitors and claim to be better than others in aspects such as the offering of trading instruments, trading platforms, execution of operations, types of trading accounts, etc. Terms Such as NDD (Dealing Desk), STP (Straight Through Processing), and ECN (Electronic Communication Network) have become increasingly common and have become part of many brokers' offerings for their clients.
These technologies have emerged as a much-needed alternative to the Market Makers (with trading floor), which present the inherent problem of creating an artificial market, benefiting from the loss of its customers, and interfering with the execution of the trader . Because the term NDD actually represents a category, Non Dealing Desk is not a particular brokerage technology per se, but rather involves the use of STP and ECN-type technologies that operate without a trading desk and route orders from buy / sell transactions directly to liquidity providers, giving customers access to the real market with faster and more efficient executions. This article describes the advantages and disadvantages of these new technologies of execution, and also analyzes the model of negotiation that some brokers present where there is a possible hybridization with a market maker behind the scenes:
Brokers STP (Straight Through Processing)
Brokers ECN (Electronic Communication Network)
Brokers with hybrid technology: ECN / STP with Market Marker.
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