They are known as A-book brokers, where market makers are known as B-book. STP brokers are a type of No Dealing Desk (NDD) broker, meaning they do not use a dealing desk to complete a trade. Dealing desk brokers, known as market makers, fill the opposite end of a client’s trade. They do this either by finding another client to take the opposite side or by taking the trade themselves.

What is the minimum deposit for FP Markets?

For example, when I traded with an STP broker, I noticed that only a few pips were added, which allowed the broker to earn a profit on each trade without charging a flat fee. For the most part, STP brokers are considered safe due to regulatory oversight from financial authorities. For example, regulated brokers like XM and XTB operate under strict guidelines from bodies such as the FCA and CySEC, ensuring that transparency and fair trading practices are maintained. VT Markets provides access to social copy trading and a decent amount of educational resources. Trades are sent directly to the market with no need for a central dealing desk. STP brokerages provide access to different providers within their liquidity pool and can choose between them.

It’s like choosing a poker table that matches your bankroll; the right minimums ensure I’m not overextending myself while taking advantage of efficient STP order routing. I’ve seen instances where brokers operating without proper licensing have led to issues like fund mismanagement, price manipulation, or withdrawal difficulties. To minimize risks, I always choose regulated STP forex brokers and verify their credentials before depositing funds. WR Trading is not a broker, our virtual simulator offers only simulated trading of a demo account.

What are the differences between STP Forex broker, ECN and Market Maker?

STP trading means my orders are sent directly to liquidity providers, cutting out middlemen. This direct access is essential whether I’m trading forex, stocks, or cryptocurrencies, and it has helped me capture market movements more accurately during critical trading moments. In volatile markets or when using trading techniques such as scalping, fast execution speeds mean accurate prices. While slippage cannot be avoided entirely, all selected Forex brokers have a low incidence of this phenomenon. IC Markets is a globally recognized STP (Straight Through Processing) and ECN forex broker, founded in 2007 and headquartered in Sydney.

This company has gained the trust and cooperation of over 700,000 partners and more than 27 million traders. It offers access to hundreds of trading instruments, including stocks, metals, Indices, and Forex. FBS helps its clients stay ahead via real-time market information, technical analysis tools, and daily articles. In addition to its conventional accounts, RoboForex offers traders the option to use demo accounts for practice. On the “market analysis” section of the website, we saw that there is news to help people make decisions based on market trends. This broker has a Civil liability insurance scheme with a limit of 2,500,000 euros.

The company strictly adheres to its regulations, does not delay payments, and provides fair quotes. The broker’s commitment to transparency and customer service further solidifies its standing in the Forex community. However, variable spreads remain a notable drawback, making it difficult to predict trading costs, especially during major market events.

Related Straight Through Processing (STP) Brokers Comparisons

Additionally, they earn from non-trading fees, which include charges for services not directly related to trading activities. These can encompass withdrawal fees, account inactivity fees, and other administrative charges. The losses that the broker will suffer from a trader’s profitable trade will be offset by the profits of the trade that the broker has opened with the liquidity provider, and vice versa.

What spreads do STP brokers offer?

We suggest you keep reading as we explore STP brokers, their distinct features, pros and cons. Also included in this article is information about other popular pricing models, such as ECN, enabling traders to choose the one that best aligns with their strategy and budget. IC Markets is an approved STP/ECN broker offering tight spreads, fast execution, and global regulation. It’s ideal for traders seeking transparent conditions, advanced platforms, and secure trading with top-tier oversight. Tickmill is a globally regulated STP (Straight Through Processing) forex broker founded in 2014. It offers low spreads from 0.0 pips, fast execution, and access to forex, CFDs, indices, commodities, and bonds.

Top 5 Best STP Forex Brokers

  • HFM is a globally recognized forex and CFD broker established in 2010, offering both STP (Straight Through Processing) and ECN (Electronic Communication Network) execution models.
  • Exness is a legit STP forex broker offering competitive spreads, instant withdrawals, and global regulation.
  • Bullwaves is a multi-asset broker that operates under Equitex Capital Ltd in Seychelles, regulated by the FSA, and has been expanding fast since 2023.
  • This CFD reflects the movement of the underlying currency pair’s price, allowing traders to speculate on Forex market fluctuations without actually owning the underlying asset.
  • While investor protection is limited, its user-friendly features and wide asset coverage make it a solid option for global traders.
  • We also list the best CFD and forex STP brokers in the USA, UK, Australia, South Africa, and around the world.

Some STP brokers charge a fixed commission per traded lot instead of adjusting the spreads. I’ve seen this in ECN-STP hybrid models, where I received raw spreads but paid a small commission fee on each transaction—something I factored into my overall trading costs. A small markup is added to the bid-ask spread before orders are sent to liquidity providers.

  • Efficient and hassle-free funding and withdrawal facilities can significantly improve your overall trading experience when dealing with Straight Through Processing (STP) Brokers.
  • They also have their own proprietary mobile application, FXTM Trader.
  • They also provide a Swissquote App for mobile trading and support FIX API for advanced traders.
  • A small markup is added to the bid-ask spread before orders are sent to liquidity providers.
  • Market conditions will affect these spreads; so, traders should observe that they are tighter in times with high liquidity.

In conclusion, STP Forex brokers offer a distinctive approach to trade execution, providing traders with more transparent pricing and faster execution. While there are some disadvantages to trading with them, the advantages of this model make it an attractive choice for those seeking better conditions and more competitive pricing. One of the biggest advantages of STP brokers is their reduced conflict of interest, as they do not trade against clients. Instead, they route orders directly to liquidity providers, enhancing fairness in pricing. Additionally, traders benefit from better market conditions due to competition among liquidity providers, leading to tighter spreads in many cases.

Key Facts About RoboForex

With both ECN and STP account options, RoboForex caters to experienced traders, though its high leverage settings require strong risk management practices. Some of the benefits of STP trading include reduced potential conflict between the broker and trader, no dealing desk intervention, transparency, and fast trade execution. The disadvantages of STP Trading include the potential for higher spreads during periods of low liquidity, limited control over the liquidity providers used, and a high probability of slippage.

The broker routes orders directly to liquidity providers without a dealing desk. The broker operates under a Straight Through Processing (STP) model, ensuring that client orders are executed directly with liquidity providers without any dealing desk intervention. Real-time pricing straight from their liquidity sources are what true STP brokers give traders. They won’t re-quote prices, which is a common practice in dealing desk models. Finally, a real STP broker will present a clear, open fee schedule that provides all pertinent information up front free from hidden costs. Furthermore, modern trading tools and technologies are usually included on STP platforms.

Following is a comparison of the STP Forex broker’s main characteristics with the other main types of Forex brokers, i.e. STP means Straight-Through Processing, and in the context of Forex (Foreign Exchange) trading refers to a type of order execution adopted by Forex brokerage firms. Investing in financial instruments, commodities, and other assets carries inherent risks, and there is a possibility that you may lose your entire investment.

The minimum deposit required to open an account with FxPro is generally USD 100 or the equivalent in other supported base currencies like EUR, GBP, AUD, CHF, PLN, and JPY. No Dealing Desk (NDD) brokers include both STP and ECN models, but not all STP brokers are ECN. The execution is different, while NDD is generally not using dealers to fill trading orders, the STP sends requests directly to the market. The difference might be in the spread and filling of orders, however, is very alike. First of all, an authorized STP broker is mostly evaluated by their regulation.

FXTM supports a variety of platforms, including the widely-used MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are available for desktop, web, and mobile. They also have their own proprietary mobile application, FXTM Trader. Axi offers the popular MetaTrader 4 (MT4) platform, available on desktop (Windows/Mac), web (WebTrader), and mobile (iOS/Android).

HFM is a well-regulated and globally trusted broker that offers STP execution, making it suitable for traders who value transparency, fast order execution, and direct market access. With flexible account types, low minimum deposits, powerful trading platforms (MT4 & MT5), and a wide range of instruments, HFM caters to both beginners and advanced traders. Pepperstone is a solid choice for those seeking a reliable and efficient trading environment. Retail traders rely on brokers to access the market and execute trades efficiently.

Traders benefit from MetaTrader 4 & 5 platforms, negative balance protection, and multiple account types, including Islamic accounts. They route client orders directly to a deep pool of Tier 1 banks and non-bank liquidity providers. This ensures fast execution and competitive spreads without dealing desk intervention. Yes, Axi uses an stp broker STP (Straight Through Processing) execution model for its Standard accounts. This means your orders are sent directly to liquidity providers without dealing desk intervention.