If you are a retail trader who launches regular trading, then you must want more controls on your trade. This control covers not only buy-sell but also checking the bids from the other-end traders so that you can get clear details of your trade. But most of the time money makers don’t support this process & you’ve to depend on their pricing information. On the other hand, although, ECN brokers give you the access to market directly, you need a higher minimum deposit and also higher minimum trade per lot.
That’s why it is necessary to have a trading processing between MM & ECN which will support you to access the market, but in a controller manner. And there the term STP comes. Today, tons of STP forex brokers are getting more popular day by day. And if you are new to this money making world, then you may want to know more details about STP brokers. And that is the core topic of today’s discussion. Hope you’ll enjoy.
STP or ‘Straight through Processing’ broker is basically a hybrid model. It inherits from both MM & ECN brokers but the core goal is to ensure an inexpensive, but manipulation free trading experience. STP brokers give you a limited access to the market or forward your query directly to the market. But they always check if your action conflicts broker’s policy or not. It makes STP brokers are slower in trading. But on the contrary, it also makes the trading inexpensive which we’ll talk about in details later.
This process is very simple. When you want to buy or sell new instruments, the market marker will directly forward your trade to the market instead of all types of manipulation by themselves. And that’s how without accessing the market directly, STP brokers give you the complete authorization on your trade.
If you want to know the difference between this two models, it is better to know the total trading model by some non-technical & easy words. So, let’s start.
|STP Forex Broker||ECN Forex Broker|
|Minimum deposit of STP Forex Accounts are lower.||Minimum deposit for ECN brokers are higher than STP & MM.|
|Trading Process execution time is slower.||Trading time is the fastest.|
|You’ve to deal with lots of requotes.||All dealings are done automatically.|
|Market manipulation is notably lower.||Market manipulation is the lowest.|
|More available than ECN||Less available than STP.|
How to Choose the Best STP Forex Broker?
Although it differs trader to trader depend on the budget, trading experiences & knowledge of money making, we can check the following common factors during choosing STP broker for you:
If you’ve a handsome minimum deposit, then we’ll recommend you to look for an ECN broker. But if you want to start money making with a reasonable amount, then STP is the best choice for you.
Processing time of your trading is faster in ECN. But the minimum deposit is lower in STP. In ECN you’ll can access directly to trade market, but on the other hand you can’t launch your trade with a small amount because in ECN trade per lot is higher than STP.
There are plenty of requotes in STP. This is a disadvantage. Besides, STP broker’s trading process is the slowest of all brokers. This is also a big disadvantage.
In fact, it is hard to tell which one is better. But if you are a beginner, then you can start with STP because it’ll clear your trading basics & also give you a better vision of money making. Then if you become successful in your primary stage and want to move your trading to a new and larger dimension, then ECN will be the better we guess.
You can find tons of STP brokers list online & this long list made you confused in many cases. But after reading the whole discussion, we hope all your confusions & misconceptions become clear. And from today, we can research STP forex broker properly by yourself and choose the right one for your future trading. Cheers.
CySEC, IFSC, IFSC
Cyprus, India, Thailand
Saint Vincent and the Grenadines
Cyprus, United Kingdom