There are kinds of brokers in the Forex trading world. Instead of no dealing desk broker, there is a dealing desk broker. This broker makes its own markets with a certain condition.
As the dealer broker can create its own markets’ users so that this broker is called “dealing desk” or Dealer or Bookie. Technically, this kind of broker gets the profit from the loss of the users. If the user has a profit, so the broker will pay the broker cash. It doesn’t come from the real markets.
Not all brokers serve in a bad way. However, as a trader, you should be careful and thorough. Before you choose the broker, make sure it is legal and registered (regulated) by the government as the brokerage. Make sure it has also a good reputation. Having a good reputation is one of the considerations of why people trade in the market. If one day there is an error or problem, you can secure yourself and sue to save you.
The process of Buy and Sell in a dealing desk broker is actually from its buyer and seller. They come from a group of users. In addition, if the volume has not reached yet, the broker will handle it. Generally, this situation is often found in the broker which has many users and has a stable volume.
Here is the function of the regulator or government to keep track of the dealer broker. Hence, legal rules will set the trading activities and it will be safe for everyone. If there is a cheating activity or something that may lose users/traders, the institution can take action of it.
There are many regulators all over the world. In international regulators, there are NFA, CFTC, FSA (FCA UK), MFSA, MiFID, and ASIC. Tips for you, make sure that those brokers are registered. In addition, two kinds of dealing desk Forex are the big and small ones.
A Big Dealer Broker
A big dealer broker has a good reputation and been registered as the official broker (FCM or Futures Commission Merchant). The characteristic is that there is an office, at least in a city or some countries as the branches. For instance, in America, Australia, England, and Japan.
To emphasize this point, find out a good reputation broker will also pay you when you get a profit. Also, there is no doubt and worry about the funds that you have invested in.
