Whenever you are browsing a website of one of the forex brokers, you may often notice some information about STP. Some brokers call their Execution type as STP, other brokers may call their accounts STP. There are even brokers that claim offering “stp services”.
So what is STP and who are STP Forex Brokers? STP stands for Straight-through processing. This means that your order is received and is executed without broker’s intervention. In other terms, STP Broker would be an antonym to a Dealing Desk Broker. Simply, STP FX Broker is the one that executes your order without sending you requotes. Yes, it is never possible to get a requote from an STP Forex Broker. No, STP doesn’t mean ECN. If you are trading with an STP FX Broker, it doesn’t mean that your order is sent to the market. FX STP Brokers can be Market Makers.
FX STP Brokers Showcase
There is a large number of STP FX Brokers or just brokers that are having STP accounts in their range of products. Forex Bonus Lab takes a look on the trading conditions and reputation of the FX STP Brokers every quarter and selects the best performing one.
Q1 2016 Best STP Forex Broker – Admiral Markets
It is never easy to find a reliable STP Forex Broker. We have analyzed every STP offer in the market and in this quarter we recon that Admiral Markets is the best choice for you. It offers competitive spreads and provides superior support. While US traders are not allowed at this STP forex broker, all other clients will be able to enjoy outstanding quality of the services as well as 1:500 leverage.
Leverage: 1:500 Licences: FCA, ASiC, EFSA
Min. Deposit: 200 USD Bonus: N/A
Spreads: from 0 pips US Clients: No
Best STP Forex Brokers Comparison
As many FX STP brokers will be taking a position against you when trading, it is important to find a trusted broker. Note that a broker that is expecting you to fail is not necessarily a bad option. In many cases, you will get better pricing and faster execution. What you should be careful about is the broker’s reputation. As there are many regulated and unregulated FX STP brokers, it is vital to find a safe place for your deposit. Below you can see the best STP forex brokers and find the one that matches your needs.
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STP Forex Brokers vs ECN vs Dealing Desk
There are many brokers that claim to be ECN, even more companies that claim they are STP forex brokers and of course some Dealing Desk brokers. While for many traders it is hard to spot the difference, it is quite obvious. Let’s define these types of the brokers below.
Dealing Desk Execution – manual intervention to trading process. A dealer has to confirm or deny your trade, which in turn may result in requotes. Such execution often provides best pricing, but the execution speed suffers.
Straight-through Processing (STP) Execution – is trading without any manual intervention from the broker’s side. You get pricing on your platform and once you place a trade, it will be executed at the best available price. Broker may choose to put or not to put your account into clearing. If not cleared, you will be enjoying great trading conditions. If cleared, an FX STP Broker will probably execute your orders slower.
Electronic Communication Network (ECN) Execution – orders sent directly to the market. Yes, this is the only type of execution where you can be 100% sure you are actually acquiring assets. Your pricing will depend on how well the broker managed to negotiate with Liquidity Providers. Execution speed will be quite good, although it also depends on the broker’s infrastructure. Note that there are many ECN Brokers that are in fact STP Forex Brokers.
When choosing the execution on your forex trading account, you have to generally understand how important the speed of execution and tight spreads are for you. In most of the cases, Forex Bonus Lab would advice you to go for STP Forex Brokers. If you are profitable and start experience worse trading conditions than before – switch your forex broker.
Check More STP Forex Broker Reviews
If you still weren’t able to find a decent broker that offers trading via Straight-Through-Processing, we invite you to take a look at this category, where you can see the latest reviews.