How we make money

No. No. NDDFX is an A-book broker. This means that we hedge all market risks and do not profit on client losses.

To reduce commissions on minimum tickets, we use the “A book net” trading model for small trades in Forex and metals below the prime broker minimum. NDDFX can make profits on small trades in Forex and metals when a client has incurred losses. However, this is only possible in certain situations. These situations are not the goal of pure A-book models and are more of a random nature.

Here are a few examples of what can happen:

• We take orders from clients and then offer to hedge the trade at a lower price.
• Clients who close small trades in quick succession before we hedge them may lose their trades.

For a number of reasons, it is incorrect to argue that we have profited from a client’s loss.

• Scenario 1: If there is a loss, it is only on a certain time horizon. This means that we are talking about an open trade with an unrealized loss. They can then close the trade with a profit.
• Scenario 2: Market risk is fully hedged by NDDFX. We don’t win or lose from market movements, and our profits are independent of client losses.

We do not profile, classify or book clients separately. Nor do we make hedging decisions based on clients’ earnings or trading behavior. This means that we do not take steps to monetize this process by making it more profitable. Batch hedging of small trades is an exercise in reducing costs and avoiding commissions, not for profit.

NDDFX earns money from spreads, swaps, commissions, and interest. We don’t profit from clients’ losses.

NDDFX LPs include tier 1 banks, non-bank market makers, ECN and dark pools. Our LPs include the following: Goldman Sachs, Saxo Bank, Deutsche Bank, BNP PARIBAS, UBS, LMAX, XTX, CREDIT SUISSE, HSBC, Natwest, STANDARD CHARTERED BANK, Vidarr Capital, Citadel Securities.

All FX/Metal trades > 50,000 are executed in the real market directly and will be filled by our LPs.

FX < 50,000 trades are executed in the real market as soon as the net position of small trades exceeds the size of the batch hedge. This is due to the high cost of hedging individual small trades.

All CFD trading is done by our non-bank market makers who specialize in index and commodity trading to ensure the lowest prices and best execution.

B-book brokers are market makers and take on the opposite role to clients. Client trades in B-book brokers are not hedged in real market. The broker can make a profit when the client loses. This creates a conflict of interest between the broker, client and broker. Brokers who have a B-book are interested in their client losing money so that they can make a profit.

An A-book broker refers to a broker that executes all trades on behalf of the client in the real market. This model is more profitable for the client than the broker. A-book brokers have fewer conflicts of interest with their clients. Brokers are better off when clients win – because they get a commission.

NDDFX does not operate with a “B” book. This means that we do not profit from client losses and do not trade against our clients. We believe that a broker’s role is only to act as an intermediary between banks.