STP technology explained

Straight Through Processing (STP), also known as STP technology, is a cutting-edge approach that enables brokers to efficiently route client orders directly to liquidity providers. Choosing a Forex brokers that offers STP can bring numerous advantages, as they are more transparent and foster an efficient trading environment for clients. STP brokers are highly reputed for their faster order execution, competitive spreads, and minimal intervention, making them a preferred choice for many traders. However, it's essential for traders to be cautious of potential drawbacks when trading with STP brokers, such as potentially higher costs and limited market depth. To ensure a reliable STP experience, it is crucial to select well-regulated brokers with extensive experience in the financial services industry, as the market is unfortunately rife with fraud and scams. For the convenience of our readers, we have compiled a list of the top-tier Forex brokers that offer STP technology.
9.54
MT4MT5Copy tradingECNHigh leveragePAMMSTP
Regulations
CMA, Central Bank of Curaçao and Sint Maarten, CySEC +5 more
Platforms
MT4, MT5
9.36
AvaTrade read review
MT4MT5Deposit bonusCopy tradingECNHigh leveragePAMMSTP
Regulations
ASIC, CySEC, DFSA +2 more
Platforms
MT4, MT5
9.18
RoboForex read review
MT4MT5cTraderDeposit bonusCopy tradingECNHigh leveragePAMMSTP
Regulations
FSC Belize
Platforms
MT4, MT5, cTrader +1 more
9.00
MT4MT5Deposit bonusCopy tradingECNHigh leveragePAMMSignalsSTP
Regulations
ASIC, CySEC, FSCA +2 more
Platforms
MT4, MT5
7.74
VT Markets read review
MT4MT5Deposit bonusCopy tradingECNHigh leveragePAMMSignalsSTP
Regulations
ASIC, FSA St. V, FSCA
Platforms
MT4, MT5
7.39
MT4MT5Copy tradingECNHigh leveragePAMMSTP
Regulations
ASIC, CMA, FSA Seychelles +1 more
Platforms
MT4, MT5
6.13
JustMarkets read review
MT4MT5Deposit bonusCopy tradingHigh leveragePAMMSTP
Regulations
CySEC, FSA Seychelles, VFSC
Platforms
MT4, MT5
5.23
Vantage read review
MT4MT5Deposit bonusCopy tradingECNHigh leveragePAMMSignalsSTP
Regulations
ASIC, FSCA, VFSC
Platforms
MT4, MT5
4.69
TradersWay read review
MT4MT5cTraderDeposit bonusECNHigh leverageSignalsSTP
Regulations
Platforms
MT4, MT5, cTrader +1 more
3.43
EagleFX read review
MT4Copy tradingECNHigh leverageSTP
Regulations
Platforms
MT4
An STP broker serves as an intermediary by directing client orders to liquidity providers, but it's important to note that this technology may involve slightly higher costs compared to other options like ECN and hybrid models. Nevertheless, STP brokers boast remarkable transparency, enabling traders to access genuine exchanges, which proves highly beneficial for seasoned professionals and investors. One notable advantage of STP brokers is their common absence of a dealing desk, which leads to reduced costs and zero trading commissions. This aspect can be particularly advantageous for day traders who prioritize lower costs over narrower spreads. Ultimately, to guarantee safety and genuine market access, it is strongly advised to opt for well-regulated and experienced Forex brokers that offer STP technology. Doing so ensures a more secure and rewarding trading experience.

FAQs about STP

What is STP in forex trading?

STP in forex trading is Straight Through Processing, which is a technology where brokers route client orders directly to liquidity providers, ensuring transparency and efficient execution.

How do STP brokers make money?

STP brokers make money through spreads and commissions, charging a small markup on bid-ask prices and sometimes earning from payment for order flow. This markup is known as the spread and is usually the main source of income for STP brokers.

What are the disadvantages of STP brokers?

Disadvantages of STP brokers include potential higher trading costs and limited market depth. Spreads are usually higher with STP brokers and traders should carefully assess their needs.