What is Difference Between DD and Market Maker Account in Forex?

DD Account vs Market Maker Account - DD Account Forex vs Market Maker Account - DD vs MM

DD Accounts

DD stands for dealing-desk, these DD account forex brokers have a dealing desk model where they can match orders & execute forex order in the online interbank exchange market.

The forex trader trading with a DD account will get a lot of re-quotes.

Dealing Desks will issue forex traders with a lot of order re quotes, meaning prices of orders aren't real-time and broker can requote a forex trader's order if the price of the market changes quick enough before broker's dealing-desk places the order online or before they match the trade order in online inter-bank forex market.

Dealing Desk accounts therefore means that order execution of forex orders is not instant and therefore this execution model might mean that orders executed using a DD Account are not executed as quickly as when compared to an ECN account or an STP trading account.

MM Accounts

Market Maker Accounts are forex broker accounts where Market Maker forex brokers have a dealing-desk model where they can match orders in house without going to the inter bank exchange market.

Forex orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This forex broker can make the decision to either execute a forex order that is the opposite of a forex trader's order thus if the trader makes a loss the broker makes a profit, & if trader makes a profit the broker makes a loss.