What is a Market Maker (Dealing Desk) Broker?

What is a Market Maker (Dealing Desk) Broker?

A market maker dealing desk broker internalizes client orders and sets quotes from its own book. Instead of routing trades directly to the interbank market, the broker becomes the counterparty.

How Dealing Desks Operate

• Quote driven: The broker streams bid/ask prices and may widen spreads during volatility.
• Risk management: Exposure is hedged selectively using larger liquidity providers.
• Execution controls: Requotes and order delays can occur if price shifts before fill.

Evaluating a Market Maker

• Review regulatory registrations and capital requirements protecting client funds.
• Analyze execution statistics—slippage, rejection rate, and order speed—published in disclosures.
• Ask whether the broker offers guaranteed stop loss or negative balance protection.
• Maintain detailed trade logs to spot systematic pricing anomalies.