Direct answer: what to check
If you trade in a No Dealing Desk (NDD) style environment, the main cost-related checks are the items that appear in the provider’s published pricing and fee schedule. However, you should also expect that some execution-related results can change from moment to moment. So, you verify (1) published costs—spreads and explicit fees—and (2) execution mechanics that can cause the “realized” cost to differ from the published quote.
Mechanism and definition: separating “price you see” from “cost you pay”
“No Dealing Desk” is best understood as an operational model where orders are not handled by an internal dealing desk that directly takes the other side of your trade. Even when the execution model is described as NDD, your trading cost is not determined only by one published number.
To keep your comparison accurate, separate these parts:
- Published spread: the difference between a quoted buy and sell price at the time of quoting. Some providers publish “raw” spreads plus commissions, while others publish an “all-in” spread figure.
- Explicit commissions and per-trade fees: charges that may be added on top of the spread.
- Financing-related costs: commonly called rollover, swaps, or overnight funding when positions are held.
- Other account fees: for example, inactivity or specific processing fees if they exist.
Then, separate variable execution outcomes from the published pricing:
- Slippage: the difference between the price you request (or the quoted price) and the price you actually receive.
- Market conditions: volatility, liquidity, and timing can change the effective spread.
- Order handling: how orders are routed, filled in parts, or re-priced when conditions change.
Evidence and example checks (assumptions made explicit)
Consider a simplified cost calculation for one position:
Assumption for the example: You place a single trade using a stated spread type and you hold long enough that financing matters.
- Spread component
- You look at the provider’s published spread description (for example, whether it is described as variable).
- You use that spread figure to estimate a transaction cost.
- Commission component
- If the provider charges commission per trade, you add that commission separately to your estimated cost.
- Financing component
- If you hold overnight, you include rollover/funding costs using the provider’s published method.
- Execution variation component
- You then assume slippage can occur during entry (and possibly exit) and treat that as an uncertainty term, not a fixed value.
A key point is that two providers can look similar in published spread figures, but differ in realized execution if one tends to show larger slippage in fast markets or handles orders differently.
Limitations and risks (material failure modes)
At least three material limitations can distort “published cost” comparisons:
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Published spreads may not represent your realized fill In fast or illiquid conditions, the effective cost can widen beyond the typical spread you read in marketing-style summaries.
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All-in cost is not just spread If a provider uses “raw spread + commission” rather than “spread only,” comparing only the spread number can miss the total transaction cost.
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Order handling can change outcomes Execution policies can affect whether your order is filled immediately, partially filled, or re-priced when conditions change.
Because you want an independent verification approach, treat historical “typical” figures as non-transferable to future conditions.
Verification and next question to ask
To verify the facts yourself, focus on finding and comparing four categories in the provider’s own documents:
- Spread definition: variable vs fixed language, and whether spreads are published as raw or all-in.
- Fees: commissions (if any), and all-in transaction charges listed in the fee schedule.
- Financing rules: rollover/swap methodology and how holding time affects charges.
- Execution and order handling: how the provider describes slippage, order execution, and any re-quote or partial fill behaviors.
Next question: Which exact spread type and fee categories does the provider describe (raw vs all-in), and what does its execution policy say about slippage and order handling in volatile conditions?