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No Dealing Desk (NDD) forex brokers provide access to the interbank market without passing orders trough the dealing desk. No dealing desk brokers work with their market liquidity providers, primarily banks to get better competitive bid and ask prices.

With true No Dealing Desk brokers there are no re-quotes on orders and no order confirmation. This, in particular, allows traders to trade during news time with no restrictions on trading.

An NDD broker can either charge a commission for trading or choose to increase the spread and make trading commission free.

No Dealing Desk brokers are either STP or ECN+STP.

STP (Straight Through Processing) forex brokers send orders directly from clients to the liquidity providers. The more there are banks and liquidity in the system, the better the fills for the clients.

The fact that traders have access to the true market and can execute trades immediately without dealer intervention is what makes the platform STP.

ECN (Electronic Communications Network) forex brokers additionally allow client orders to interact with other clients' orders. ECN Forex broker provides a marketplace where all its participants (banks, market makers and individual traders) trade against each other by sending competing bids and offers into the system.

Participants interact inside the system and get the best offers for their trades available at that time. All trading orders are matched between counter parties in real time. Often a small fee is applied.

Sometimes STP brokers are discussed as if they were ECN brokers. To be a true ECN, a broker must let clients show their own order size in the system and allow other clients to hit those orders. With ECN broker traders can see where the liquidity is and execute trades.

Among the main reason why traders look for NDD brokers is transparency, better and faster fills and anonymity.

Transparency means that a trader enters a true market instead of the market being artificially created for him.

Better fills are a result of the direct and competitive market bids and offers.

Anonymity means that there is no Dealing Desk watching who has come to the market and is asking for an order to be filled, instead client orders are executed automatically, immediately through the market network and totally anonymously.

over 2 years ago