Dealing desk

A dealing desk (DD) broker internalises client orders. It quotes prices, fills orders from its own book and decides how much of the resulting risk to keep or hedge elsewhere. In practice, "dealing desk broker" is largely another name for a market maker.

A no dealing desk (NDD) broker, by contrast, says it passes orders through to external liquidity providers, typically describing its model as STP or ECN.

What it means for clients

• Conflict of interest: where the broker keeps the trade (see A-book and B-book), client losses are broker gains. Regulated firms must identify and manage this conflict.
• Pricing: dealing desk accounts often offer fixed or wider variable spreads with no commission.
• Execution: the broker may fill orders instantly at its quoted price, but in fast markets could also requote or apply slippage. EU and UK rules require best execution and symmetric handling of price changes.

Worked example

You buy one lot of EUR/USD at 1.0850 with a dealing-desk broker that keeps the trade. If you close at 1.0830, you lose 200 dollars and, before any hedging, the broker gains 200 dollars. If you close at 1.0870, the broker pays you 200 dollars from its own book.

Practical note

The label matters less than the evidence: a clear order execution policy, consistent fills in both directions, regulation by a strong authority and a fair complaints process. See ECN, STP and market maker execution.