A Forex Broker and Broker Types

If it assumes that a Broker is a financial intermediary between the client or investor and the foreign exchange market, the function or purpose of the different types of brokers should be the same that is used as a means for individuals or companies invest their money in buying and selling foreign currencies, may have a gain from such operations, without a guaranteed result, ie also lose in such operations or transactions.
However, there may be some types of brokers who serve as intermediaries and only really earn a management fee, which are called Brokers NDD (No Dealing Desk), while other brokers can play the market to trade currencies customers under the name or identification of Brokers DD (dealing desk).
What is the difference between Type Broker Broker NDD and DD?
The NDD brokers connect the customer directly with the foreign exchange market or forex, conducting operations authorized by the customers without being holders of the same operations, ie they are really intermediaries. While DD Brokers sold the operations of its customers, ie do not connect the investor with the pure market exchange, but transactions between the same customers. Therefore, we can say that the operations of the NDD brokers are more diaphanous, transparent and pure. This does not mean that the NDD brokers operations more profitable and secure, but eliminates possible procedural fairness, and that connect directly with the currency market.Why is there and DD born Broker?
From the standpoint of the investor, the market driving the DD Broker allows you to invest smaller amounts of money, almost from the same U.S. $ 1, which gives it attractive to new investors and beginners forex market. From the point of view of the Broker, the possibility of negotiating with the same positions or options transactions of its customers, given the opportunity to cover and almost always win, because if you lose one hand wins the other, if loses a customer has a chance to win simultaneously with the other client.What type of Broker is more risky for the client or investor?
No doubt the Broker NDD is safer because it is only an intermediary between the client and the currency market, including the client's money and existing products in the capital market to buy or sell. However, the Broker DD can have more control and interference on investment, giving you the power to be generated conflicts of interest between a client and another, between profit and customer, one and a half of operation increased risk. However, if you trust with the Broker DD, you can extend the type of work to do with the currency market.Are there brokers who are both NDD and DD?
There is an increasingly common practice to allow brokers to pay almost all operations and functions, resulting in one Broker who can officiate as NDD or DD. This allows the Broker to expand its customer market for small and large investors, and at the same time becomes a facility for investors to venture into any transaction, provided that they are aware of the risk and what they are doing.How do you detect a DD Broker?
If you are allowed to enter the Forex market with little or minimum capital and if they do not charge entry fees visible, there is a high possibility that it is a Broker DD or Money Maker. In its operations the Broker earn commissions not only from the difference of buying and selling of foreign exchange trading, investing in the opposite direction to the operations and strategies made by customers, giving them much chance of winning and yields.How do you charge for their services NDD brokers?
An alternative that NDD Broker charge a commission for buying and selling, or managing investments, or from charging a spread for the same transaction of purchase and sale made. That for practical purposes corresponds to a margin on the purchase price or sale of currency traded on the stock market. It could also be negotiated with the broker a fee that includes mixed party committee and party spread.
What type of Broker or Broker is the best for the investor?
The first thing is make sure the broker is serious and responsible, lawfully constituted, if possible supported by laws and agencies, referred to by customers and investors with experience and knowledge of the stock market and currency, with the technology to offer customers, and a wide possibility of choices for every risk profile to be admitted in a conscious and responsible. No doubt the NDD broker is more transparent and provides guarantee in principle more credibility and objectivity in handling operations, but more importantly, in choosing your broker evaluation first serious and responsible, and never take the lightly.