NDD Broker
An NDD broker is a type of broker that provides direct access to the interbank market for trading various financial instruments such as Forex, CFDs, and commodities. NDD stands for “No Dealing Desk”, which means that the broker does not take the other side of the trade and does not act as a market maker. Instead, the broker passes the orders directly to the liquidity providers, such as banks and other financial institutions, who then execute the trades.
History of NDD Brokers
NDD brokers have been around since the early 2000s, when the internet made it possible for retail traders to access the interbank market. Before this, only large institutional traders had access to the interbank market, and retail traders had to use market makers, who would take the other side of the trade and act as the counterparty. With the advent of NDD brokers, retail traders could now access the interbank market directly, without having to go through a market maker.
Comparison of NDD Brokers
| Broker | Minimum Deposit | Spreads | Commission |
|---|---|---|---|
| Broker A | $100 | 1.5 pips | $2 per lot |
| Broker B | $500 | 0.8 pips | $3 per lot |
| Broker C | $1000 | 0.5 pips | $4 per lot |
Summary
NDD brokers provide direct access to the interbank market for trading various financial instruments. They have been around since the early 2000s, and have made it possible for retail traders to access the interbank market without having to go through a market maker. For more information about NDD brokers, you can visit websites such as Investopedia, Forex.com, and FXCM.
See Also
- Market Maker
- Interbank Market
- Forex Trading
- CFD Trading
- Commodity Trading
- ECN Broker
- STP Broker
- Spread Betting
- Leverage
- Margin
