Dealing Desk

A dealing desk is a broker execution model where the broker acts as counterparty to client trades, filling orders internally rather than routing them to external liquidity.

What it means in practice

A dealing desk (DD) is a broker execution model where the broker fills client orders internally, acting as the counterparty to each trade. Instead of routing orders to external liquidity providers, the dealing desk sets its own bid and ask prices and profits from the spread markup between them. This model is also referred to as B-book execution in the A-book vs B-book framework.

For introducing brokers and forex affiliates, the dealing desk model has specific implications. DD brokers typically offer lower minimum deposits, fixed spreads, and simpler onboarding — all of which can increase registration conversion rates. However, the inherent conflict of interest (the broker profits when clients lose) can affect long-term trader retention and programme reputation. IB commission structures at DD brokers often favour CPA or spread-based commissions rather than pure lot-based models.

In practice, many brokers labelled as dealing desk operate hybrid models. They may internalise smaller retail orders while hedging larger positions externally. The distinction matters for affiliate programme economics: DD brokers can offer higher CPA rates because they retain more revenue per client, but the long-term LTV of referred traders may differ from what ECN brokers or STP brokers produce.

How Dealing Desk works across industries

See how dealing desk is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.

Forex

Dealing Desk in Forex partner and IB models

In forex, dealing desk brokers dominate the retail segment. They provide fixed spreads on major currency pairs like EUR/USD and GBP/USD, instant execution without requotes on standard lot sizes, and often support [MetaTrader](/glossary/metatrader-integration) platforms. IBs promoting DD brokers typically earn [spread-based commissions](/glossary/spread-based-commission) calculated as a percentage of the broker's spread markup. The lower entry barriers mean higher funnel volumes, which suits IBs running paid acquisition campaigns.
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How Track360 handles this

Track360 supports IB programme structures for both dealing desk and non-dealing-desk brokers. Operators can configure spread-based, lot-based, or CPA commission models with per-partner rates, regardless of the underlying execution model.

FAQ

Frequently Asked Questions

Common questions about dealing desk, how it works in affiliate programs, and where it shows up across Track360's supported verticals.

A dealing desk broker fills client orders internally rather than routing them to external liquidity providers. The broker acts as the counterparty to each trade and profits from the spread between bid and ask prices. This is also known as the B-book model.

Related Terms

Forex & IB

ECN Broker

Forex
Read Definition

An ECN broker routes client orders directly to liquidity providers via an electronic communication network, offering variable spreads and transparent pricing.

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Forex & IB

STP Broker (Straight Through Processing)

Forex
Read Definition

An STP broker routes client orders directly to liquidity providers without a dealing desk, earning revenue through spread markups or commissions.

Forex & IBRead More →
Forex & IB

Market Maker Broker

Forex
Read Definition

A market maker broker acts as the counterparty to client trades, setting its own bid/ask prices rather than routing orders directly to the interbank market.

Forex & IBRead More →
Forex & IB

A-Book vs B-Book Broker

Forex
Read Definition

A-Book brokers pass client orders to external liquidity providers, while B-Book brokers take the other side of client trades internally. The model affects spreads, execution, and IB economics.

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Forex & IB

Spread-Based Commission

Forex
Read Definition

A commission model in Forex IB programs where the introducing broker earns a portion of the spread (the difference between bid and ask price) on every trade their referred clients execute.

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Forex & IB

Lot-Based Commission

Forex
Read Definition

Lot-based commission is a broker affiliate or IB payout model where partners earn a fixed amount for each traded lot generated by their referred clients.

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Forex & IB

Liquidity Provider

ForexProp Trading
Read Definition

A liquidity provider is a financial institution or entity that supplies buy and sell quotes to brokers, enabling trade execution at competitive spreads.

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Forex & IB

ECN Broker vs Market Maker

Forex
Read Definition

ECN brokers route orders to external liquidity providers for execution, while market makers fill orders internally against their own book.

Forex & IBRead More →
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Further reading on dealing desk and related affiliate program topics.

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