Can a Market Maker broker be Non Dealing Desk??

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I want to open an account with a famous broker, that is MM, but says that No dealing desk interventions are made. Is that possible? I thought that all Market Makers were Dealing Desk, because don't give access to the interbank market, instead in this case it is NDD...
 

There is 10 minute video about the differences between Forex Broker Types - MM,NDD,STP,ECN
#92 

 
Sergey Golubev:

There is 10 minute video about the differences between Forex Broker Types - MM,NDD,STP,ECN
#92 

I already know these things, the video says that Market Maker is always DD. But my question is how is possible that a Market Maker is Non Dealing Desk, as my broker claims to be.
 
Jox90:
I already know these things, the video says that Market Maker is always DD. But my question is how is possible that a Market Maker is Non Dealing Desk, as my broker claims to be.
It's probably  a sales personel who mixed the definitions who said that. 
 

Many broker gives 1:500 leverage for almost all currency pairs. I always wondered how they can afford to do this.

Any broker in the market offers ECN accounts market executions direct market access. Order go directly to the liquidity provider right?

Broker should cover your trade margin x 500 for any currency pair you trade with. Lets say you trade with EURDDK.

Broker must be very rich from DDK to cover your trade margin x 500. Or south african rand visa versa.

I can not avoid to  think how? I might have an idea. It's about winning/lossing ratio.

%75 of the retail trader loses money on forex. And the NDD market maker story might be starting there.

 

I found the answer: there is a section on the site of the broker which explains why it is NO DEALING DESK, even if it is a Market Maker. Here is the explanation:


Due to the high volumes of our client’s trades, we are able to internally match a great deal of our order flow. This allows us to minimize our risk without interfering with your orders in any way.

As not all client positions are hedged, a residual exposure up to our market risk limit remains in house. Excess exposure may be hedged externally.

 
Jox90:

I found the answer: there is a section on the site of the broker which explains why it is NO DEALING DESK, even if it is a Market Maker. Here is the explanation:


Due to the high volumes of our client’s trades, we are able to internally match a great deal of our order flow. This allows us to minimize our risk without interfering with your orders in any way.

As not all client positions are hedged, a residual exposure up to our market risk limit remains in house. Excess exposure may be hedged externally.

Which is the definition of a dealing desk.

So they are a dealing desk broker and don't want to recognize it as it's not good marketing, or don't know it which is even worst.

 
But that would be illegal! They are award winning broker, regulated FCA and Cysec. How could be possible what you are saying?!
 

BREAKING DOWN 'Dealing Desk'

The term "desk" may be a bit of a misnomer, given its connotation of a table shared by a couple of traders. Large financial institutions often have dealing facilities that are staffed by hundreds of dealers. In a large organization, major currencies, such as the euro and yen, may have several trading desks staffed by dozens of traders who specialize in these currencies.

Because of electronic trading, the number of forex dealers at a desk has declined significantly since the mid-2000s. In the late 1990s, a dealing desk could be made up of 15 to 20 traders, with often multiple people covering the same currency. However, today, your typical forex desk will have less than ten traders, some as few as five with a lot of the business being quoted and cleared by an electronic auto-hedging platform. 

The forex dealing desk is located next to the sales desk and in most cases near the market risk desk that monitors positions and will flag any risk with trades or forex positions currently. The market risk team is looking for anomalies and will calculate the value at risk (VAR) at the end of each day to assess the size of the risk that the bank has at any given time.

source Investopedia

 
Jox90:
But that would be illegal! They are award winning broker, regulated FCA and Cysec. How could be possible what you are saying?!

A market maker is by definition a dealing desk, the fact it is automated doesn't change the concept.

From your quote :

Due to the high volumes of our client’s trades, we are able to internally match a great deal of our order flow. This allows us to minimize our risk without interfering with your orders in any way.

What about the remaining beside this "great deal" ?

What do you think a Dealing Desk is ? A definition from an article among a lot of others you can easily find :

To fill you, your broker will first try to find a matching sell order from its other clients or pass your trades on to its liquidity provider, i.e. a sizable entity that readily buys or sells a financial asset.

By doing this, they minimize risk, as they earn from the spread without taking the opposite side of your trade.

However, in the event that there are no matching orders, they will have to take the opposite side of your trade.

Don't mix up the marketing stuff and the reality behind it.

We can't talk about specific broker here, please do the researches.

 
Ok. So in a way "they are NDD" only partly, so they are DD. Now I wonder if this means that there are more possibilities to have losing trades compared to an ECN or STP broker...one thing is for sure: I'm disappointed just for the thing that they claim to be what they are not.
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