If you’re looking for a forex broker, you’ve probably come across the term “STP broker”. But what is an STP broker, and how do you choose the right one for you? An STP broker is a forex broker that “straight through processes” all trades. This means that the broker does not take the other side of your trade. Instead, it simply matches your trade with another trader’s trade, or with a liquidity provider.
STP brokers usually offer lower spreads than market makers, as they don’t have to mark up the price. This makes STP brokers more popular with traders who are looking for tight spreads.
What Is STP Forex Broker
An STP Forex broker is a type of broker that works by passing on your trade to another trader, or to a liquidity provider. The main benefit of using an STP broker is that they often offer lower spreads than market maker brokers. This is because STP brokers don’t have to mark up the price. There are a few things you should consider when choosing an STP Forex broker. Firstly, make sure that the broker is regulated by a reputable body. Secondly, compare the spreads on offer from different brokers. And finally, make sure that the broker offers a platform that you’re comfortable using.
Best STP Forex brokers
HFM is an award winning forex and commodities broker, providing trading services and facilities to both retail and institutional clients. Through its policy of providing the best possible trading conditions to its clients and allowing both scalpers and traders using expert advisors unrestricted access to its liquidity, HFM has positioned itself as the forex broker of choice for traders worldwide.
InstaForex can be your best option because the ECN account minimum of this brokerage is only 1 US dollar. It aims to provide its users with first-class trading services. Currently, it offers more than 200 assets around five different asset classes.
Conceived in 2011, Axiory has spent the last decade serving you, the trader, by offering you access to online CFDs and exchange products with conditions that work in your favour. We’ve expanded to speak your language, made ourselves familiar with your culture, and built teams to represent us in your country. We’ve added products and tools and lowered our numbers wherever possible so that you can increase yours. The one thing that will never changed is you’re always #1.
FBS is an international broker with more than 150 countries of presence. 23 000 000 traders and 410 000 partners have already chosen FBS as their preferred Forex company. To provide the best customer experience FBS organizes seminars and special events, providing its clients with training materials, cutting-edge trading technologies and latest strategies on the Forex market.
FXChoice was established in 2010. The broker is licensed by the International Financial Services Commission of Belize) and provides quality brokerage services for active and passive trading on the Forex market. FXChoice enjoys popularity among Western traders thanks to the broker’s commitment to business integrity, focus on customers, and to high requirements for its global employees.
Tickmill is a trading name of Tickmill Ltd, a member of Tickmill Group, which is regulated by the Seychelles Financial Services Authority (FSA). With a proven track record of strong financial results and stable growth, Tickmill has put itself in an enviable position as a trusted market leader and innovator.
What Are The Benefits of STP Forex brokers
The STP system ensures higher levels of anonymity because it directly connects traders with the liquidity providers the broker works with. Respectively, this gives customers instant access to more liquidity and better interbank prices. This is especially beneficial from the perspective of scalpers who will not have to deal with issues like slippage and requotes. It also works to the advantage of news traders. The exposure of a market maker increases beyond certain predetermined levels after important news releases, which may cause them to reject the orders of some customers. A news trader is spared these hassles when trading with an STP broker.
STP brokers provide traders with deeper access to the markets. Companies that rely on this model aggregate market prices from multiple providers of liquidity. This translates into better trade execution, more transparency, and more competitive pricing for customers.
If you’re looking for a more flexible way to trade forex, then an STP broker may be the right choice for you. Just make sure you compare different brokers before making a decision.
STP Brokers Pros & Cons
An STP broker is a forex broker that offers Straight Through Processing of trade orders. These are brokers that send the trader’s orders straight to the liquidity providers for trade order processing and fulfillment. Straight Through Processing is possible thanks to the development of the Financial Information Exchange protocol. The core essence of the STP model is to shorten trade execution time, reduce slippage/re-quotes and ensure that traders get the best pricing. So STP describes the process by which non-dealing desk brokers route their orders.