How we make money
Forex traders and speculators trade currencies in order to determine whether the currency will appreciate in value. Foreign exchange market (or forex market) is high-risk. Every day, more than $5 trillion in trades are made. Trades can only be made by traders who turn to an intermediary, such as a forex broker.
For the execution of buy and sell orders, a broker may charge a transaction fee (or spread). This is how forex brokers make money. Spread is the difference in price between ask and bid for a trade.
We believe in greater transparency between brokers and their clients
NDDFX means that we explain how we make our money and who executes trades for our clients so traders can make informed decisions about whether or not they want to do business together.
NDDFX is an ECN and DMA broker.
How we generate income
NDDFX doesn’t make money on clients’ losses, unlike B-Book brokers.
- Commissions – Each round lot is charged a commission for Forex and metals trades.
- Spreads – We can earn income by spreading spreads. This is done by adding a markup on the market price. Spread income could also be defined as the difference in price between the price we execute your trades and the price we hedge it.
- Swaps – We add a small spread on the swap rates that we receive from interbank markets for Forex and metals transactions.
- Interest – We add a small spread on the interest rates received from liquidity providers for commodity and index CFD trading.
How we make money per asset class
|Asset Class||Commissions||Spreads||Swaps & Financing||B-book (trader losses)|
Trading is fully automated
NDDFX trading can be fully automated. “No Deal Desk” “No Deal Desk”
- Keep a book of Bs or make money from client losses.
- You will receive a share of any profits from a group company that is related to trading losses suffered by our clients. This means that no other company has a B-book for us.
- We have arrangements with our trading counterparts to manage the B-book for us.
- We can make our own trades and take on our own risk.
Your questions, answered.
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.
Benefits of World Class Trading
You'll be able to trade on competitive rates and leverage our global reach.
- We understand what you need
- Trade with a transparent broker
Deep liquidity through ECNs and dark pools. Get the ECN advantage.
- Be a part of an elite trading community
- Be confident in your trading decisions
Range of Markets
Get access to the world's most liquid markets. Trade 24 hours a day.
- Keep up with your favorite assets
- Be confident when trading
Several account Types
Choose the best trading account that suits your trading style.
- Trading conditions on demo and real accounts are as identical as possible.
- Support of any trading strategies.
We've got you covered: technical, fundamental, news, and EA friendly.
- Learn how to trade without worry
- Be in control of your trades
Fast execution speeds from as low as 10ms. Competitive pricing
- Get the best prices in the market
- Get what you want, when you want it
We serve traders like you
from 197 countries
Access to market depth on all account types
Depth of Market (or DoM), is a popular one that allows traders to see market liquidity. This refers to the number of trades on the market at what price.
Market liquidity is an important aspect for traders. If there isn’t enough liquidity in a market to match your orders your orders will be slipped or filled at higher or lower prices than you intended.