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Thread: Dealing Desk - Is this true?

  1. #1

    Default Dealing Desk - Is this true?

    I've had a chat with a dealing desk broker and got to know this from the conversation

    Broker: We are a dealing desk.

    Me: does the dealing desk trade against customers?

    Me: i've heard several rumours about dealing desk doing that

    Me: such that they do not only earn from spread only

    Broker: Dealing Desk firms do provide you constant liquidity all time instead of forwarding every order they receive to a bank.

    Broker: This means that you get a better and faster execution.




    Can anyone confirm this if it's true?

  2. #2
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    Quote Originally Posted by dennerle View Post
    I've had a chat with a dealing desk broker and got to know this from the conversation

    Broker: We are a dealing desk.

    Me: does the dealing desk trade against customers?

    Me: i've heard several rumours about dealing desk doing that

    Me: such that they do not only earn from spread only

    Broker: Dealing Desk firms do provide you constant liquidity all time instead of forwarding every order they receive to a bank.

    Broker: This means that you get a better and faster execution.




    Can anyone confirm this if it's true?
    thats correct, additional:

    - customers with 1 lot orders and more are normally redirected to the banks asap, banks accept normally only orders with 1 lot or higher!
    - customers with less the 1 lot are collected and then the order goes to the banks
    - as mostly noted, 95% of all traders felt, so the broker trades 95% against theese customers = if you buy, broker sells
    - brokers have enough stats in their order book about you, they know which customer is profitable and which not
    - if a broker says, he have no dealing desk, check out if he requotes, requotes ocourring if the broker backend system is busy, and your order is in the queue
    - real ecn brokers redirect your order in milliseconds to the interbanks = no requotes but often higher spreads = ecn-no rquotes-often higher spreads, dealing desk broker-requotes-fixed spread
    - ecn brokers doesnt matter in which direction you trade, their income is the variable higher spread
    - dealing desk brokers with fixed spread must calculate very sharp their biz, because banks have no fixed spread, example: bank offer eur/usd with spread 12, broker gives you with fixed spread 3 = - 9 spread for the broker, now the broker trade against you, requotes your order too, to eliminate the -9 spread and so on, this is the calculation

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broker, brokers, ecn, eur, eur/usd, offer, profitable, real, spread, system, time, usd

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