You know when you go into a store and the clerk inquires, “Can I help you?", but you just want to browse casually, so you respond with a terse, "No, I got it." That’s basically the process behind a no dealing desk, but with forex trading.
If you're a small player in the forex game (the word "forex" stands for "foreign exchange," as in currency trading), you'll do most of your deals through a broker. You give them the order and they'll take care of the processing.
However, if you're ready for the next level, you can move to the no dealing desk stage. This situation plugs you right into the interbank market. No need for the intermediary of a broker. You can trade directly. By acting directly in the market, you get faster execution (and therefore, often more efficient pricing). You will likely also save on fees. However, you have to deal with the technical complexity and added paperwork of going it on your own.
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Finance: What is a Broker-Dealer?16 Views
Finance a la shmoop.. what is a broker-dealer? It's one of [Homeless guys holding help signs]
these guys who's making less than minimum wage right no that'd be a broke
dealer and you won't find too many of them in Lake Tahoe but yeah a broker is [Man talking about broker-dealers in Lake Tahoe]
just someone who takes a commission for selling stuff they live wherever there
are transactions in cars, boats, planes, homes and securities like stocks and
bonds so yeah it's a broker - dealer sort of like a writer-director
sexual deviant in Hollywood... Key takeaway here the broker dealer brokers
securities ie they take a commission and they deal in securities like they carry [People playing blackjack]
their own inventory of ten million shares of Amazon this week's selling
them for twelve hundred ninety dollars and 32 cents a share and buying them for
twelve hundred eighty eight dollars seventy nine cents a share making a
spread of...
equals a dollar fifty-three a share the dealer makes a spread of a buck fifty [Dealer and market transferring cash and stock]
three every time she trades a share of the Walmart killing behemoth yeah it's
sort of a Goliath slaying Goliath story there that Amazon Walmart thing we're
watching it so think about broker-dealer making money on both sides of the trades
that's the way to go if you're going to Wall Street make money no matter what [Man walking on Wall Street]
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