Unfortunately, it's not quite so clear cut. Some dealing desks are automated, so don't cause too many problems. Some allegedly ECN brokers trade against you and have a manual dealing desk.
True ECN brokers vary. If I understand correctly, MB Trading matches orders between customers and then passes unmatched orders via ECN directly to the interbank market. Like any "normal" brokerage, spreads widen and
slippage (or no fills) can happen during volatile market conditions. If you want a broker with a true interbank platform, there are some, but they have pretty hefty minimum account balances.
Typical market makers have some sort of dealing desk (even when they claim not to). As mentioned, if it's automated, this isn't too bad. If it's a manual dealing desk, that means that a human gets orders and passes them onto the market (HUGE slippage and/or lots of no fills). A frequent complaint of traders is that after they become profitable, the broker puts them onto the manual dealing desk. In some cases this is a valid complaint. In others, it's just Murphy's Law at work.
Dealing Desk -
09-15-2008, 07:50 PM
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