Best STP Forex Brokers

Best STP Forex Brokers

Best STP Forex Brokers Comparison Table
Online BrokerTrading PlatformsMinimum DepositRegulatedType Of Broker
MT5, ParagonEx
Trading Platforms
$100
Minimum Deposit
CySEC (Cyprus)
Regulated
STP Broker With Fixed Spreads & Crowd Trading
Type Of Broker
MT4, MT5
ECN Trading Platforms
$200
Minimum Deposit
CIMA (Cayman Islands)
Regulated
STP ECN MT4 & MT5 Broker
Type Of Broker

STP Forex Brokers - What is STP

STP stands for Straight Through Processing. An STP broker receives and transmits orders from their client to and from liquidity providers (for example another broker). The STP broker acting as an agent transmits orders to the liquidity provider who may transmit the order to another liquidity provider. STP is known as well as Matched Principal Trading. An STP broker is not necessarily an ECN broker, though an ECN broker may typically use STP. STP brokers can provide spreads which may be fixed or variable, depending on the broker.

A difference between an STP and an STP ECN broker is in terms of the type of trading which may be allowed and supported. ECN brokers will tend towards using infrastructure to support automated trading with high speed order processing. An STP broker may not allow certain kinds of styles such as scalping, while an ECN broker will tend not to restrict styles. On the other hand an STP broker may provide support for traders who make their own trading decisions by offering a user friendly trading platform and other tools.

ECN accounts typically can offer low variable spreads for the more liquid Forex pairs, to which is added a commission charge, while an STP broker may not charge a commission at all (and consequently can have higher Forex spreads). Traders who execute their own trades can use an ECN broker as well, and the broker may offer accounts which are specifically aimed at such traders, in addition to their ECN account (sometimes called an STP account, which does not charge commissions).

The Forex trader may find a particular type of STP broker to be more suited to their style of trading. Forex trading encompasses a range of trading styles, from automated to non-automated. Some Forex traders may prefer to trade with fixed rather than variable spreads (though even fixed spreads may widen in volatile market conditions). An automated Forex trader may wish to use an ECN broker without restrictions on the style of trading they use. Traders who execute their own trades may want a user friendly trading platform, with information which can help them when analysing markets.

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