10 Best NDD Forex Brokers in 2021

NDD brokers provide direct access to interbank market rates of exchange. They offer what is known a Straight-Through Processing (STP) which is a system that works directly with liquidity providers. Instead of dealing with one liquidity providers, clients using trading platforms with NDD forex brokers deal with numerous providers to get the most competitive and exact bid and ask prices.

NDD forex brokers may also use ECN methods to access instantly executable rates for their clients. NDD forex brokers make money by charging an exchange fee or a commission.

Choose your quick section of our best NDD Forex Brokers below

Our 10 Best Handpicked NDD Forex Brokers Revealed:

CM Trading

Founded                              2012      

Regulated                           FSCA, FSP           

Headquarters                    South Africa

Tradeable assets               Currencies, commodities, indices, stocks, crypto, futures

Trading platform              MT4

Trading desk                      STP, ECN, Market Maker, NDD

Minimum deposit            $250

Exness

Founded                              2008

Regulated                           CySEC, FCA, FSA(SC), FSCA

Headquarters                    Cyprus

Tradeable assets               Currencies, commodities, indices, stocks, crypto

Trading platform              MT$, MT%

Trading desk                      Market Maker, NDD

Minimum deposit            $10

FxPro

Founded                              200

Regulated                           CySEC, FCA, FSCA, SCB

Headquarters                    United Kingdom

Tradeable assets               Currencies, commodities, indices, stocks, futures

Trading platform              cTrader, MT4, MT5, Proprietary

Trading desk                      No dealing desk (NDD)

Minimum deposit            $100

FXTM

Founded                              2011

Regulated                           FCA, CySEC, FSCA, FSC (Mauritius)

Headquarters                    Cyprus

Tradeable assets               Currencies, commodities, spot metals, stocks, indices, crypto

Trading platform              MT4, MT5

Trading desk                      Market Maker

Minimum deposit            $10

JustForex

Founded                              2012      

Regulated                           Pending

Headquarters                    Belize

Tradeable assets               Currencies, commodities, indices, stocks, crypto, futures

Trading platform              MT4

Trading desk                      ECN, NDD, STP

Minimum deposit            $1

Pepperstone

Founded                              2010      

Regulated                           ASIC, BaFin, CySEC, DFSA, FCA, SCB          

Headquarters                    Australia

Tradeable assets               Currencies, commodities, indices, stocks, crypto, futures

Trading platform              cTrader, MT4, MT5

Trading desk                      Bank, DMA, ECN, NDD, STP

Minimum deposit            $150

Plus500

Founded                              2008      

Regulated                           ASIC, CySEC, FCA, FSB, ISA, MAS

Headquarters                    Israel

Tradeable assets               Currencies, commodities, indices, stocks, crypto, futures, options

Trading platform              Plus500 proprietary

Trading desk                      No Dealing Desk (NDD)

Minimum deposit            $100

Price Markets

Founded                              2013

Regulated                           FCA

Headquarters                    United Kingdom

Tradeable assets               Currencies, commodities, indices, crypto, futures

Trading platform              MT4

Trading desk                      ECN, NDD, STP

Minimum deposit            $5 000

Tickmill

Founded                              2014

Regulated                           CySEC, FCA, FSA(SC), FSCA, Labuan FSA

Headquarters                    United Kingdom

Tradeable assets               Currencies, commodities, indices, bonds, futures

Trading platform              MT4

Trading desk                      No Dealing Desk (NDD)

Minimum deposit            $100

XM

Founded                              2009

Regulated                           ASIC, CySEC, DFSA, IFSC

Headquarters                    Cyprus

Tradeable assets               Currencies, commodities, indices, stocks, futures

Trading platform              MT4, MT5

Trading desk                      No Dealing Desk (NDD)

Minimum deposit            $5

What is a NDD forex broker?

You get two types of forex: Dealing Desks (DD) which are also called Market Makers and No Dealing Desks (NDD). The No Dealing Desks model is divided into Straight-Through Processing (STP) and Electronic Communication Network (ECN).

As the name suggests, NDD forex brokers do not pass their clients through a Dealing Desk. This means they do not take the other side of their clients’ trade and there is no conflict of interest on executing orders.

How NDD works is the trader’s order goes ‘straight through’ to the interbank market via trading platforms such as MetaTrader 4 and MetaTrader 5. The interbank market is made up of banks, hedge funds, mutual funds, larger brokerages and corporate investors.

You can think of NDD forex brokers as bridge builders. Their trading platform creates a pathway to the interbank market which otherwise would not be accessible to online retail forex traders. For this privilege, NDD charges a very small commission or just a markup by increasing the spread slightly.

NDD brokers can either be STP or STP+ECN brokers.

Pros and cons of a No Dealing Desk (NDD) system

Forex brokers use the NDD system to work directly with numerous market liquidity providers, as opposed to one liquidity provider with the DD system. This means their clients get the most competitive bid and ask prices as well as the most exact prices. The rates are instantly executable; there is no slippage or re-quotes with the NDD system of trading.

There are two key implications of dealing directly with the interbank market: the size of currency spreads and the amount of additional cost to make a trade.

PROS

Direct access to the interbank market

NDD forex brokers are simply price aggregators, meaning they collect prices from various sources and then quote the best bid-ask price to their clients. The interbank market participants send their prices through an electronic network which means the prices are updated in real time. This avoids the need for brokers to re-quote.

No conflict of interest

When you trade with NDD brokers, the other side of your trade (counterparty) is taken by the liquidity providers. It’s not taken by the forex broker which means there is no conflict of interest. One of the criticisms of Market Makers (Dealing Desk brokers) is that they make money when forex traders lose money and they are often accused of manipulating or holding back orders.

Best bid-ask prices

The offshoot of the above two benefits is NDD brokers can offer the best bid-ask prices in the forex market. They have access to a wide variety of liquidity providers and only charge a small fee for the service of passing on orders.

With NDD forex brokers, the bid-ask spread is variable because there are always so many quotes from different liquidity participants. The spread may widen at times and at other times, it will be very tight.

No re-quotes

When you trade forex with a NDD broker, you can expect rapid execution of orders. It’s very rare in normal market conditions for a NDD forex broker to issue a re-quote when you have hit the execute button on the trading platform. NDD brokers don’t hold the position themselves so there’s no reason why trades should not be executed instantly at the given price.

The only time when things get choppy with NDD brokers is when the forex market is particularly volatile. This may be after a big economic data release or breaking headline news.

Automated electronic system

The NDD broker model is fully automated which means NDD brokers can rapidly execute their clients’ orders at the price posted by the liquidity provider. NDD brokers merely acts as an intermediary; they take the price order from their clients and execute the order on the liquidity provider’s quote.

The electronic communications network (ECN) can handle a multitude of liquidity providers and hundreds of orders at the same time for the same currency pairs. The Straight-Through Process (STP) is also an electronic network but it can’t handle as many prices or quotes at the same time as an ECN. Instead, the STP goes straight through to several Tier-1 banks, large brokerages and financial institutions but there are few participants available on the system.

CONS

NDD brokers may offer wider spreads

Traders using NDD brokers are exposed directly to the exact spread available to retail customers. As a result, NDD brokers may offer wider spreads. This can make the cost of a trade greater as retail traders must give up the value of the spread with each trade.

NDD brokers charge an exchange fee or a commission

NDD forex brokers make money by charging an exchange fee or a commission. They pass the spread directly through to the customer and charge a fee for their service. Compared to trading with a DD broker, using a NDD broker can become more expensive over time.

However, the fee charges by NDD brokers is a small price to pay for the fact that there is no conflict of interest, the NDD broker won’t trade against you and you have access to the most competitive and exact bid-ask prices.

Dealing Desk (DD) vs No Dealing Desk (NDD)

This is a question that most beginner forex traders will ask when it comes to choosing the right broker for their trading needs. Should you use a Dealing Desk (DD) broker or a No Dealing Desk (NDD) broker?

It really depends on your trading style. There are pros and cons to each type of broker. You either get tighter spreads and pay a commission per trade, or you get wider spreads and no commissions.

Day traders and scalpers generally prefer tighter spreads because the forex market needs less traction to cover transactions costs and they can make small profits. For longer-term swing and position traders – like your everyday forex trader, wider spreads tend to be insignificant.

Here is a comparison between Dealing Desks (Market Makers) and No Dealing Desks (STP/STP+ECN):

Dealing Desk (Market Makers)

Dealing Desk (DD) forex brokers are also called Market Markers.

Market Makers create markets for clients. Under certain conditions, a MM will sell to the trader and buy from the trader. Market Makers may trade in the opposite direction to their clients if they need to. A MM can control prices by widening the spread and reducing its risk of completing a trader’s orders. Thus, the bid-ask price seen by the trader is not always the same as the actual price in the forex market.

Key characteristics of DD forex brokers:

  • offer fixed spreads
  • take the opposite side of your trade
  • provide artificial quotes
  • orders are filled by broker on a discretionary basis

No Dealing Desk (STP/SPT+ECN)

NDD forex brokers are not counterparties to their trading clients. They act as intermediaries to directly connect their trading clients with the interbank market. This allows forex traders to trade directly at the same level as the interbank forex market.

NDD forex brokers fulfil an important role because individual retail traders are too small to participate in the interbank market. True NDD trading platforms should not require re-quotes and there should be no pause in confirming orders. Traders are able to conduct real-time transactions without any restrictions using a NDD forex brokers trading platform.

Key characteristics of NDD forex brokers:

  • offer variable spreads or an exchange fee or commission
  • act as intermediaries between clients and liquidity providers
  • bid-ask prices come directly from liquidity providers and other ECN participants

Forex Trading Africa Disclaimer

Forex is a complex instruments and trading forex involves a high risk of losing money rapidly due to leverage. You need to understand how forex trading works and decide whether you can afford to take the risk of losing money on trade orders that do not go your way.

Forex Trading Africa annually reviews brokers regarded as the best in the world and provides information on the products, fee structure, market analysis and service they offer. We aim to provide important information for you to base your decisions on when choosing the right forex broker for your needs.

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