In forex and securities trading, the no dealing desk model is a brokerage model in which a broker does not act as counterparty to trades performed by investors. Instead, the broker simply facilitates trades between investors.
Because brokers who use the no dealing desk model do not buy and sell assets to investors, but simply link buyers to sellers, they do not bear any risk with regards to the performance of their clients’ investments.
Brokers who use the dealing desk model, on the other hand, risk losing money if the price of assets climbs after they have sold them to investors because they may have to buy those assets back at a higher price. They also stand to gain money if the price of assets sold to investors falls and investors sell those assets back at a lower price.
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