There are two types: 1. There is a Dealing Desk (DD) type DD platform, also known as MM, which is a market maker.
Usually a DD trading platform has a Dealing Desk or processing Desk for processing orders and the type is set to fixed.
The market makers themselves profit from the spread and trade in the opposite direction from their clients when necessary.
As the name suggests, it is “market making” for customers.
2. No Dealing Desk (NDD) A non-dealing Desk (NDD) foreign exchange transaction platform can be further subdivided into STP, DMA/STP, and ESC+STP.
As the name suggests, there is no Dealing Desk, that is, no processing platform.
Brokers do not trade with counterparties who are traders, but simply connect traders with the interbank market, so traders can trade directly at the level of the interbank FX market.
A true NDD forex trading platform does not require re-quoting and there is no unnecessary pause in confirming orders, so there are no restrictions when trading on news.
Generally speaking, the scale of individual traders’ transactions is too small to refer to foreign exchange transactions in the interbank foreign exchange market.
