When it comes to HFT, it is generally recommended to use a **No Dealing Desk (NDD)** broker or an **Electronic Communication Network (ECN)** broker¹. NDD brokers allow customers to trade directly with the interbank rates, which can help traders in some cases but hurt them in others¹. Trading with an NDD broker assures the trader that their broker has no conflict of interest with their trades¹.
An ECN broker, on the other hand, technically takes orders from clients and sends them directly to a pool of liquidity providers. The quoted prices displayed by ECN brokers are some of the best you will find as they come from multiple institutions and market participants².
Source: Conversation with Bing, 8/22/2023
(1) No Dealing Desk (NDD): What it is, How it Works - Investopedia.
https://www.investopedia.com/terms/n/no-dealing-desk.asp.
(2) Forex Brokers Types: ECN VS Market Makers VS No Dealing Desk - Mitrade.
https://blog.mitrade.com/markets-to-trade/forex/types-of-brokers.
(3) No Dealing Desk - Overview, Interbank Market, Advantages.
https://corporatefinanceinstitute.com/resources/capital-markets/no-dealing-desk/.
(4) What is a Forex Dealing Desk - Forex Brokers - FX Leaders.
https://www.fxleaders.com/forex-brokers/what-is-forex-dealing-desk/.
