Straight Through Processing (STP), brokers are examples of Market Making Brokers. STP brokers usually present their quotes, which are relative to those of the interbank. STP brokers work in a way that on receiving customers’ orders, they directly transfer it to their liquidity provider. A liquidity provider can be investment corporations, hedge funds, banks, or other brokers.
STP Forex brokers do not process clients’ orders through a Dealing Desk, which means that no middlemen are involved. The absence of a Dealing Desk is what makes the electronic trading platform Straight Through Processing. The absence of an intermediary gives the brokers the capacity to instantly process their clients’ orders and the passage of not having to send re-quotes to the clients. This is advantageous in the sense that it allows the customers to trade without limit.
STP brokers work with several liquidity providers, which has proved to be advantageous as this allows them to get better fills for the traders. Most of the liquidity providers used are banks. To get more information about the top STP Forex brokers, go through the table below.
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