Dealing desk

A dealing desk broker, also known as a market maker, takes the opposite side of client trades. Instead of passing orders directly to the interbank market, they fill orders internally from their own liquidity pool. They quote bid and ask prices to clients, and when a client opens a position, the dealing desk becomes the counterparty. This allows them to control spreads and potentially profit from client losses.

For retail traders, dealing desk brokers typically offer fixed or wider spreads compared to ECN models, as the spread is their primary profit mechanism. There is a potential for requotes or execution delays, especially during volatile market conditions, as the broker manages their internal risk. Traders should understand this model means the broker profits when the trader loses, creating a potential conflict of interest.