Best No Dealing Desk Brokers 2024
The best NDD Forex broker - OANDA
Top NDD Forex Brokers:
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OANDA - Best for trading with advanced technical analysis tools (TradingView charts support)
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FOREX.com - Diverse range of tradable assets (80+ currency pairs)
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Interactive Brokers - Best broker for international investors (assets from 33 countries, 150+ markets)
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Tradiso -
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RoboForex - Best Forex broker for beginners ($10 min. deposit, copy trading)
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Pocket Option - Best for Social Trading (top rated service by customers)
In the dynamic landscape of Forex trading, selecting the right broker is paramount for success. The advent of Non-Dealing Desk (NDD) brokers has revolutionized the industry, offering traders direct access to the interbank market without intermediary intervention. As we delve into the intricacies of NDD brokerage, our TU experts aim to unravel the pros and cons of these brokers in 2024.
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How do you execute a trade in Forex?
To execute a trade in Forex, you open your trading platform, select the currency pair, select the trade size, set the entry price, and decide on a stop-loss and take-profit level. Then, click the "Buy" or "Sell" button to initiate the trade.
Best NDD brokers in the world
OANDA
The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.
👍 Pros
• Minimum deposit from 1 dollar.
• A large selection of the most popular trading instruments.
• Several reliable and reputable financial regulators.
👎 Cons
• Inconvenient and poorly functioning site.
• Lack of cent accounts.
• Lack of bonus programs.
FOREX.com
Forex.com is a company owned by GAIN Capital Holdings, Inc. (NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, FCA (No. 113942).
👍 Pros
• average rate of order execution is 0.04 ms;
• reliability is controlled by several regulators so customer funds are kept on separate accounts from the company's assets;
• attractive trading conditions are tight spreads on over 90 assets, including currency pairs and metals, and over 4,500 markets, including FX, indices, commodities, stocks, and cryptocurrencies.
👎 Cons
• poor quality of site optimization, little specifics in the descriptions of services, tabs at the top of the page do not work. To find the information you have to use a tab called "Sitemap";
• it is difficult to contact the support service due to its high workload;
• large fixed commission for withdrawing funds;
• high initial deposit, it starts from $1,000;
• there are few options for depositing and withdrawing funds, the terms rarely correspond to those stated.
Interactive Brokers
Interactive Brokers is among the best-known US investment companies, operating since 1977. The broker offers to trade currency pairs, but its basic instruments are stocks, CFD, indices, metals, ETF, futures, and other exchange market assets. You can also trade cryptocurrencies on Interactive Brokers. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA), and other international financial regulation commissions. In 2020, the broker was awarded the "Best Online Broker” (Barron's) and "Best Broker for Economical Investments" (NerdWallet) titles and got five stars in the Online Stock Trading for Traders category (Canstar). Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.
👍 Pros
• wide range of training materials;
• access to 135 markets in 33 countries;
• a huge subset of trading instruments.
👎 Cons
• website interface is only partially translated into other languages;
• you have to pay for an inactive account;
• Support service does not work on Saturday and Sunday;
• long and complex registration procedure;
• no cent accounts for novice traders.
Tradiso
Tradiso offers trading different financial assets, including currency pairs, cryptocurrencies, and CFDs on indices, stocks, and commodities. The company is registered in Kingstown, St. Vincent and the Grenadines, but its activities are not regulated by any financial authorities. Thus, Tradiso provides its services without a license.
👍 Pros
• Over 800 financial instruments;
• Three account types that differ in trading conditions;
• Tight spreads on the Standard account, and 0 pip spreads on the ECN account;
• Fast order execution of about 30 ms;
• Demo account for practicing trading on financial markets and testing trading conditions.
👎 Cons
• Only crypto wallets and PayPal are available for deposits and withdrawals;
• No cent accounts for trading with minimal risks;
• The company’s activities are not regulated.
RoboForex
RoboForex is a brokerage company that was founded in 2009. RoboForex is a leading software developer in the Forex industry and one of the best Forex brokers based on client reviews.
RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437).
👍 Pros
• Availability of favorable trading conditions and a minimum deposit
• Unique investment program CopyFx
• Highest affiliate payments: up to 84% of the fee paid by the referral
• Market launch - STP and ECN
• Instant withdrawal of funds
• Minimum deposit - $10
👎 Cons
• A small number of currency pairs - 36, for accounts: Pro, Pro-Cent, ECN, Prime
• Lack of tools when trading on the R StocksTrader platform
Pocket Option
Pocket Option is an innovative Forex and binary options broker with over $500 million in trading volume. It offers active trading on financial markets, copy trading, and passive income on holding funds in dollar and cryptocurrency safes. The broker provides an in-house platform to trade binary options and MetaTrader platforms to trade CFDs on currencies, cryptocurrencies, stocks, indices, and commodities. Pocket Option was incorporated in 2017. The broker’s service is available in more than 95 countries and regions globally. Today, over 10 million users are registered with the broker, and 100,000 traders regularly use its services. In July 2023, it obtained a license from Mwali International Services Authority number T2023322.
👍 Pros
• MetaTrader provides for trading binary options and CFDs;
• A demo mode is available for all account types;
• To register, you may use your Google email or Facebook/Google account;
• Active, social, and algorithmic trading is available on MT4 and MT5 accounts;
• Spreads are from 1.2 pips for Forex and no fees per lot;
• Referral program for retail clients with rewards of up to 50%-80% of the referee’s income;
• “My Safe” service that provides for crediting 10% per annum on the account balance not involved in trading;
• Cash back and promo codes for binary option traders;
• 50% deposit bonus.
👎 Cons
• The broker offers neither cent accounts for novice traders to test strategies and advisors, nor ECN accounts with near zero spreads for professional traders;
• Real-time communication with operators is available upon funding the account.
Exness
The Exness brand is known worldwide due to its profitable trading conditions, high-security level, and wide range of financial instruments. It focuses on trading CFDs, especially currency pairs. Cryptocurrencies, commodities, stocks, and derivative stock indices are also available. Exness offers account types for novice traders, more experienced traders, and professionals. It allows traders to use a variety of strategies including passive ones, such as copy trading and algorithmic trading. The proprietary Exness platform for social trading is used by over 20,000 investors globally. The broker’s activities are legal and its services are available in over 130 countries. Exness is supervised by 8 financial commissions, including CySEC (Cyprus, 178/12), one of the strictest European regulators, and FCA (UK, 730729), FSA (Seychelles, SD025), FSC (BVI) SIBA/L/20/1133, CBCS (Curacao, 0003LSI), FSCA (South Africa, 51024), and CMA (Kenya, 162). The broker offers demo and cent accounts for novice traders, as well as standard and ECN account types for experienced traders.
👍 Pros
• Availability of 8 licenses and a membership in the Financial Commission with its own compensation fund to insure traders against losses;
• Wide choice of account types — Standard, Pro, Cent, Swap Free, and Demo;
• Wide range of CFDs, including over 100 currency pairs;
• Zero deposit and withdrawal fees;
• Proprietary platforms for active and social trading, as well as all versions of classic MT4 and MT5.
👎 Cons
• The broker’s website offers almost no educational materials;
• 24/7 support isn’t available in all languages.
Eightcap
Eightcap offers more than 800 trading instruments, namely CFDs [contract for (price) differences] on currency pairs, cryptocurrencies, indices, stocks, commodities, and precious metals. The broker has a minimum deposit of $100, a free demo account, and two live account types, which differ in trading costs. One account type has standard spreads without a fee, and the other has raw spreads that carry a brokerage fee. The maximum leverage is 1:500. Traders can use any strategy with minimal restrictions. Trading is carried out through MetaTrader 4, MetaTrader 5, and TradingView. Eightcap has two main features. First, the broker has a powerful training and analytical base. Second, the platform offers a number of unique tools, for example, Capitalise.ai, which provides automated trading with minimal risk. At the same time, there are no options for passive income, not even a referral program.
👍 Pros
• The broker is registered in the Bahamas and Seychelles, and is regulated by the Securities Commission of the Bahamas (SCB, SIA-F220), ASIC (391441), FCA (921296), CySEC (246/14). Also, it partners with many proprietary firms;
• Traders need to deposit only $100 to open a live account, and the broker imposes few trading limits on its clients;
• Hundreds of the most popular CFDs are available, and the pool is constantly expanding;
• Eightcap provides one of the most profitable trading costs with really tight spreads;
• Almost all options for depositing/withdrawing funds are available and the broker does not charge a withdrawal fee;
• The broker’s clients can work through any of the three top trading platforms, including mobile versions of the MetaTrader solutions;
• The company provides high-quality training, extensive analytics, and its own developments for automated trading.
👎 Cons
• No joint accounts, copy trading, referral program, or other options for passive income;
• Eightcap has some regional restrictions. For example, some services are not available in Australia;
• The broker's technical support is efficient and competent, but it is not available on weekends.
FBS
FBS (fbs.com) is an international broker operating in 190 countries. The brokerage company has been on the market for over 10 years, and during this time it has earned about 40 international awards. It is regulated by the CySEC under license number 331/17 and provides flexible conditions for Forex trading. In addition to classic currency pairs, the company's clients can trade indices, futures contracts, exotic currencies, and metals. FBS is especially popular in Asian countries such as India, Malaysia and Indonesia.
👍 Pros
• negative balance protection;
• a large selection of trading instruments;
• the support service works 24/7.
👎 Cons
• no cryptocurrency;
• auto copying is not available;
• no PAMM accounts;
• not suitable for short-term trading, such as scalping;
• the support service works in a limited number of languages;
• only two real accounts.
TeleTrade
TeleTrade was established in 1994. The company won 2018 Traders Union Awards as the Best Broker in Europe. The brokerage company is a member of the Association of Forex Dealers, a self-regulatory organization in the financial market. The company is also regulated by the Cyprus Securities and Exchange Commission (CySEC, 158/11). The European branch of TeleTrade has adopted the brand name Earn.
The broker provides access to trading various currency pairs, as well as metals, stocks, cryptocurrencies, indices, and energies.
👍 Pros
• detailed analytical section;
• informative educational section.
👎 Cons
• no PAMM accounts or other money management options;
• a small range of trading instruments;
• few withdrawal options;
• support is available 24/5;
• withdrawals delayed;
• technical support responds slowly;
• sometimes it takes a long time to verify data.
Comparison of the Best NDD brokers
| Broker | Minimum Deposit | Spead | Tradable Instruments | |
|---|---|---|---|---|
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No |
0 points |
FX, Indices, Bullion, Commodities, Crypto |
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$1000 |
0.2 points |
Forex, cryptocurrencies, indices, commodities, stocks |
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No |
0 points |
Stocks, options, futures, currency, metals, bonds, ETF, mutual funds, CFD, EPF, Robo-portfolios, hedge funds |
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$0 |
0 points |
Currency pairs, cryptocurrencies, CFDs on stocks, indices, and commodities |
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$10 |
0 points |
Forex (currency pairs), ETFs, index CFDs, oil CFDs, CFD on European and U.S. stocks, real securities |
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$5 |
1.2 point |
Binary options and CFDs on currency pairs, cryptos, indices, stocks, and commodities |
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$10 |
1 point |
Forex CFDs on: cryptos, commodities, indices, and stocks |
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100 USD |
0 points |
CFDs on currency pairs, cryptocurrencies, indices, stocks, commodities, and precious metals |
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|
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€10 |
0.2 points |
Forex, indices, metals, futures contracts |
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USD 10 |
0.8 points |
Forex, metals, indices, energies, stocks, cryptocurrencies |
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What is a non dealing broker?
In the world of Forex trading, there are two main types of brokers: Non-Dealing Desk (NDD) brokers and Dealing Desk brokers. NDD brokers don't have their own dealing desk; instead, they connect you directly with major players in the Forex market, like banks and financial institutions. This means you're trading with these big players, not with the broker itself. NDD brokers offer advantages like access to the interbank market, where prices are better, and instantly executable rates through electronic communication networks (ECNs).
They also provide transparency by showing you the exact spread available in the interbank market. However, NDD brokers may have wider spreads and charge commissions or fees, potentially making trades more expensive. On the other hand, Dealing Desk brokers act as intermediaries and may offer tighter spreads and lower fees, but they can manipulate prices. So, it's important to weigh the pros and cons to choose the type of broker that suits your trading needs best.
How to choose the best non dealing broker?
| Tips | Details |
|---|---|
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Regulation Matters |
Choose brokers regulated by reputable authorities like FCA, CySEC, or ASIC to ensure they adhere to strict standards, protecting your funds and interests. |
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Execution Model |
Understand whether the broker operates as a Non-Dealing Desk (NDD) or a Dealing Desk (DD). NDD brokers offer direct market access, ensuring transparent and fair order execution, while DD brokers may act as counterparties, potentially leading to conflicts of interest. |
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Spreads and |
Compare the spreads and trading commissions offered by different brokers. NDD brokers typically offer competitive spreads due to direct access to the market, but it's important to ensure these align with your trading strategy and budget. |
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Platform and |
Evaluate the broker's trading platform for its user-friendliness, reliability, and availability of essential tools such as charting, technical analysis, and risk management features. Testing the platform through a demo account allows you to assess its suitability before committing real funds. |
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Customer Support |
Consider the quality of customer support provided by the broker. Responsive and knowledgeable support can be crucial during critical moments. Verify that the broker offers timely assistance through various channels like live chat, email, or phone to address your queries and concerns effectively. |
How does a no dealing desk (NDD) broker operate?
A No Dealing Desk (NDD) broker functions as a facilitator, connecting traders directly to the interbank market for trade execution. Here's how it works:
Firstly, traders place their orders through the NDD broker's platform, specifying the instrument, volume, and execution price. The broker then accesses multiple liquidity providers, including prime brokers and ECNs, to find the best bid and ask prices in real-time. Once the most favorable price is identified, the order is routed directly to the chosen liquidity provider for execution.
This process ensures transparency, as traders can see the actual market prices. Moreover, NDD brokers don't profit from traders' losses directly, operating instead on commissions or wider spreads. Execution is typically faster due to electronic order routing.
However, it's essential to consider factors like minimum trade size and fee structures (commissions vs. spreads), as well as the potential impact of market volatility on spreads. While NDD brokers offer transparent and potentially lower-cost trading, beginners should be aware of the commission structure and possible learning curve.
Differences between DD brokers and NDD broker
| Aspect | Dealing Desk (DD) Brokers | No Dealing Desk (NDD) Brokers |
|---|---|---|
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Execution Speed |
Slower due to internal matching of trades by the broker. |
Faster as trades are directly routed to liquidity providers. |
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Requotes |
May issue requotes, leading to delays and frustrations. |
Typically execute orders without requotes, providing smoother trading experiences. |
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Slippage |
More prone to slippage due to order processing delays. |
Slippage minimized as orders are executed directly in the market. |
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Trading Costs |
Often offer fixed spreads, potentially resulting in higher costs. |
May charge a commission or offer variable spreads with potentially tighter spreads. |
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Market Access |
Provide access to a market created by the broker. |
Offer direct access to the interbank Forex market, with deeper liquidity. |
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Suitability |
Suited for traders seeking simplicity, less concerned about transparency. |
Preferred by traders valuing transparency, faster execution, and direct market access. |
Pros & Cons of NDD trading
👍 Pros of NDD Trading
• Transparency: NDD brokers provide direct access to the interbank market, ensuring traders can see real-time prices and execution without any interference.
• Tight Spreads: NDD execution typically results in tighter bid-ask spreads, which helps reduce trading costs for traders.
• No Conflict of Interest: NDD brokers don't trade against their clients, eliminating any potential conflict of interest. They earn revenue through commissions or spreads.
• Fast Execution: Orders are executed swiftly due to direct access to liquidity providers, ensuring timely execution of trades.
• Access to Depth of Market (DOM): Traders have access to the order book and market depth, enabling them to make informed trading decisions.
👎 Cons of NDD Trading
• Commission Fees: NDD brokers charge commissions on trades, which can accumulate over time and add to trading costs.
• Market Volatility: Spreads may widen during periods of high volatility, affecting the quality of trade execution.
• Lack of Fixed Spreads: Unlike market maker brokers, NDD brokers don't offer fixed spreads, which may be a disadvantage for traders who prefer predictability.
• Limited Order Types: NDD execution may not support certain order types, such as guaranteed stop-loss orders, limiting traders' flexibility.
Expert opinion
In the domain of Forex trading, choosing the right broker is crucial. Non-Dealing Desk (NDD) brokers, like RoboForex, IC Markets, and others, offer direct access to the interbank market, ensuring transparency and fair execution of trades.
While NDD brokers provide faster execution and tighter spreads, they may charge commissions and face wider spreads during volatile market conditions. Beginners should prioritize user-friendly platforms and educational resources.
Regulatory compliance, execution model, and trading costs should be considered when selecting the best NDD broker. Ultimately, it's about finding a balance between transparency, costs, and trading preferences to make informed decisions in your trading journey.
Methodology for compiling our ratings
Traders Union applies a rigorous methodology to evaluate brokers using over 100 both quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
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Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
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User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
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Trading instruments. Brokers are evaluated on the breadth and depth of assets/markets available to trade.
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Fees and commissions. A comprehensive analysis is done of all trading costs to analyze overall cost to clients.
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Trading platforms. Brokers are assessed based on the variety, quality and features of platforms offered to clients.
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Other factors like brand popularity, customer support, education resources are also evaluated.
FAQs
What is a NDD broker?
A Non-Dealing Desk (NDD) broker is a type of Forex broker that routes clients' orders directly to the interbank market without any interference or manipulation. This ensures transparency and fair execution of trades.
Which NDD broker is best for a beginner?
When choosing an NDD broker, beginners should consider factors like account minimums, educational resources, and trading platform usability.
What is MT4 NDD?
MT4 NDD refers to the Non-Dealing Desk (NDD) execution model implemented on the MetaTrader 4 trading platform. It allows traders to access liquidity providers directly for transparent and efficient trade execution.
What is the difference between ECN and NDD?
ECN (Electronic Communication Network) is a subset of NDD brokers. While both offer direct market access, ECN brokers specifically connect traders with a network of liquidity providers, offering greater depth of market and potentially tighter spreads compared to other NDD models.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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3
CFD
CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.
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4
ECN
An ECN, or Electronic Communication Network, is a technology that connects traders directly to market participants, facilitating transparent and direct access to financial markets.
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5
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
Team that worked on the article
Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).