Dealing Desk Scams
Traders who got scammed by Market Makers may think that No Dealing Desk (NDD) brokers may be a better or smarter choice. We are going to see that this may not be the case every time, although these brokers offer more attractive options. Indeed, NDD brokers confront the traders with the real interbank market, which can turn out sometimes to be a losing game for domestic traders are most of the time undercapitalized compared to banks’ huge capital. In theory, the most undercapitalized party has more chance to go bankrupt thank the other.
Let’s take FxPro broker. First of all, FxPro charges 10 percent of each deposit you make. After a phone conversation with them, they were unable to justify such a practice.
The main argument of the No Dealing Desk broker is about very low spreads. Some of them display ultra-competitive spreads and they hype themselves up on the web. However, like a market maker, a No Dealing Desk offers “floating spread”, means that the wonderful 0,6-Pip spread you have heard about when registering may turn into a 1,6-Pip spread when you trade! If you decide to work with a NDD, get sure to deal for “fixed spreads”.
Here are below FxPro’s floating and fixed spreads to get a clear idea:
FxPro MT4 floating spreads
FxPro MT4 fixed spreads
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Dealing Desk Scams,