STP Forex brokers

STP Forex brokers
(No Dealing Desk + STP)

STP Forex brokers is the most diverse group when it comes to trading conditions.
Ranging from STP brokers who act almost like a Market maker, to STPs who offer advanced DMA trading.

While all STP brokers offer No Dealing desk (NDD) trading and Straight Thought Processing (STP), which eliminates conflict of interests, there are 3 factors that stand them apart:

  • Order execution type
  • Number of liquidity providers
  • spreads

The list of STP brokers and trading conditions:

 

STP brokercompare Forex brokers Order execution:compare Forex brokers Spreads:compare Forex brokers STP available on accounts:compare Forex brokers Number of Liquidity providers:compare Forex brokers
Forex Time (FXTM)  Instant & Market execution variable All accounts over 15
Alpari International Instant & Market execution fixed & variable All accounts over 10
BDSwiss                            Instant & Market execution fixed & variable All accounts over 10
1BillionForex Instant & Market execution fixed & variable All accounts over 30
24FX Instant & Market execution fixed All accounts 2
AAAFx Market execution variable All accounts 3
AAFX Trading Market execution fixed & variable All accounts 10
Abshire-Smith Instant & Market execution fixed & variable All accounts 12
AccentForex Instant & Market execution fixed & variable STP accounts – Market execution 5+
ACM Gold Instant execution fixed All accounts 1
Admiral Markets Market execution variable All accounts over 12
ADS Securities London Market execution variable All accounts over 30
ActivTrades Market execution variable Interbank accounts 2 (Citi, Deutsche Bank)
Advanced Markets Market execution variable All accounts 11 (Macquarie Bank, Bank of America, Barclays Capital, Citi, Commerzbank, BNP Paribas, Deutsche Bank, J.P. Morgan, Morgan Stanley, Nomura, UBS)
AFX Capital Market execution variable AFX Classic accounts 5
AGM Markets Market execution variable All accounts 2
Alfa Financial Instant & Market execution fixed All accounts 5
Alpha Capital Markets Instant execution fixed & variable All accounts over 14
AmigaFX Instant execution fixed All accounts 2
AssetsFX Instant & Market execution variable All accounts 1 (LMAX)
ATC Brokers Instant & Market execution variable All accounts 1 (FXCM)
Atom8 Instant & Market execution variable All accounts 1
Axiory Market execution variable All accounts 8 banks
AxiTrader Market execution variable All accounts 14
BCapitalsFX Market execution variable All accounts 25
BelforFx Instant & Market execution variable All accounts 2
Blackwell Global Instant & Market execution fixed & variable All accounts 12 (BOA, Barclays, Citi, Credit Suisse, HSBC, JP Morgan, Standard Chartered, BNP Paribus, Deutsche Bank, RBS, USB, and Morgan Stanley)
BlackBull Markets Market execution variable All accounts 22+ Top Tier 1 banks
BTFX Market execution variable All accounts 1
Bulbrokers Instant & Market execution fixed & variable All accounts 10
Caesar Trade Instant & Market execution variable All accounts ?
CAPPROFX Instant & Market execution variable All accounts 5
CFD1000 Instant & Market execution fixed & variable All accounts 10
CFH Clearing Instant & Market execution variable All accounts all top tier 1 banks
CFI Markets Instant & Market execution fixed & variable All accounts
CM Trading Market execution variable All accounts 70
Core Liquidity Markets Market execution variable All accounts over 15
ContinentalFX Instant & Market execution fixed & variable All accounts over 10
Darwinex Market execution variable All accounts 1 (LMAX)
Direct FX Market execution variable All accounts 17 (tier 1 banks)
Divisa Capital Market execution variable All accounts 12
EightCap Market execution variable All accounts 10
eToro Instant execution fixed All accounts 1 (RetailFX)
Euro Pacific Bank Market execution variable All accounts 5
FBS Instant & Market execution fixed & variable All accounts 10+
IV Brokers Instant & Market execution fixed & variable All accounts 15+
FeelTrade Instant execution fixed & variable All accounts over 30
Fidelis Market execution variable All accounts 10+
Finpro Trading Market execution variable All accounts 16
FIPFX GLOBAL Instant & Market execution variable All accounts 10
FirewoodFX Instant execution fixed All accounts 2
Forex Broker Inc Instant & Market execution fixed & variable All accounts 3
Forex Club Instant execution fixed & variable ActTrader platform 7-10
Forex FS Instant & Market execution variable All accounts 4 (banks)
Forex4you Instant & Market execution fixed & variable All accounts 2 (primary; + few reserve)
Forex.ee Market execution variable All accounts 6+
RallyTrade Instant & Market execution fixed & variable All accounts 1
Fortress Capital Instant execution fixed & variable All accounts over 30
FreshForex Instant & Market execution fixed & variable All accounts 4
FW Markets Market execution variable All accounts 3
FXCH Instant execution fixed All accounts 8
Fort Financial Services Instant & Market execution fixed & variable All accounts 8 (Deutsche Bank, Barclays, Goldman Sachs, Morgan Stanley, Nomura, UBS, Merrill Lynch, Credit Suisee)
FX-EDGE Market execution variable All accounts 5-7
FXCM – Forex Capital Markets Market execution variable All accounts 10+
FXFair Market execution variable All accounts 25
FxGlory Instant & Market execution fixed All accounts 5
FXGM Instant execution fixed All accounts broker refused to provide information
FxNet Market execution variable All accounts 2
FXOpen UK Market execution variable All accounts over 15
FXOptimax Instant & Market execution fixed & variable All accounts >5
FxPlayer Market execution variable All accounts 20
FXPRIMUS Instant execution fixed & variable All accounts 5-10
GDA Fincorp Instant & Market execution variable All accounts 4
GAINSY Market execution variable STP accounts 20
Gallant Capital Markets Market execution variable Micro & Standard accounts 15
GCI Financial Instant execution fixed All accounts 10
GDMFX Instant & Market execution fixed & variable All accounts 15
GKFXPRIME Instant & Market execution fixed & variable All accounts 5
Global Prime Forex Market execution variable All accounts over 15
Golden Tangent Market execution variable All accounts 3
Grand Capital Instant & Market execution variable All accounts 3
Grinta Invest Market execution variable All accounts 14+
HeartForex Market execution variable All accounts 4
Hirose Financial UK Instant & Market execution fixed All accounts 10
HiWayFX Market execution variable All accounts 2
HotForex Market execution variable All accounts 6
IamFX Market execution variable All accounts 2 (IB for GCMFX)
IC Markets Market execution variable STP accounts 2
IFC Markets Instant execution fixed All accounts 5
IKON Group Instant & Market execution fixed & variable All accounts over 30
IMMFX Market execution variable All accounts 12
Indigo DMA Market execution variable All accounts 10
INTFX Market execution variable All accounts 5
InstaForex Instant execution fixed All accounts broker refused to provide information
Invast Market execution variable All accounts over 30
Investorseurope Market execution variable All accounts 15 banks
IronFX Instant execution variable All accounts 2
IsikFX Instant execution fixed All accounts 10
Juno Markets Market execution variable All accounts 10-12
JustForex Instant & Market execution fixed & variable all accounts 1 (Sucden Financial, through 18 banks)
KAWASE Market execution variable All accounts over 15
Key To Markets Market execution variable All accounts 20
KGI Ong Capital Market execution variable All accounts 10
KRCNZ Market execution variable All accounts 3
LAND-FX Instant & Market execution variable All accounts 5+
Lider Forex Instant execution variable All accounts 1 (FXCM broker)
LiteForex Instant & Market execution fixed & variable All accounts 21
LMAX Market execution variable All accounts 4 (LCH.Clearnet (central LP), Goldman Sachs, JPMorgan, Optiver)
LMFX Instant & Market execution fixed & variable All accounts 2
LCG (London Capital Group) Market execution variable All accounts over 10
Lucror FX Instant execution variable All accounts broker refused to provide information
MaxFX Instant execution variable All accounts 1
MEX EXCHANGE Instant & Market execution variable All accounts 3+
MTI Markets Instant & Market execution variable All accounts 16
MTrading Instant & Market execution fixed & variable All accounts 5+
NAS Broker Instant & Market execution fixed & variable All accounts 2
NoaFX Instant & Market execution fixed & variable All accounts 16
Nord FX Instant & Market execution fixed & variable Standard accounts 18+ (via Currenex and Integral to: Bank of America, Barclays, BNP Paribas, Citibank, Commerz Bank, Credit Suisse, Deutsche bank, Goldman Sachs, HSBC, J.P.Morgan, Morgan Stanley, MUFG, Natixis, Nomura, RBS, SEB, SMBC, UBS))
NSFX Instant & Market execution fixed & variable All accounts 2
OctaFX Market execution variable All accounts 10
One Financial Markets Instant & Market execution fixed & variable All accounts 8
OloFx Market execution variable All accounts 10
PaxForex Instant execution variable All accounts 5
Pepperstone Market execution variable All accounts 22 (banks and ECNs)
Pacific Financial Derivatives (PFD-NZ) Instant & Market execution fixed & variable All accounts 12
PhillipCapital Market execution variable All accounts 18
PhillipCapital UK Market execution variable All accounts 5+
Profiforex Instant & Market execution fixed & variable All accounts 3
Real-Forex Market execution variable All accounts 10 (Bank of America, Citibank, Deutsche Bank, Goldman Sachs, J.P.Morgan, Morgan Stanley, UBS)
Renesource Capital Market execution variable FX Calssic accounts 26 (ADM, Deutsche Bank, MAREX, GFT, JSC IBC Finasta, JSC Citadele Banka, JSC Latvijas Krajbanka, KIT Finance, MF Glbal, ODL Securities, Penson Financial, Pinnacle Capital Markets, Saxo Bank, Swedbank, Commerzbank and other )
Royal Forex Trading Instant & Market execution fixed & variable All accounts 15
RoboForex Instant & Market execution fixed & variable Pro accounts 16 (through Integral: Citibank, Deutsche Bank, Bank of America, UBS, HSBC, NOMURA, RBS, BNP Paribas, Credit Suisse, COMMERZBANK, SEB, SMBC, Morgan Stanley, Goldman Sachs, JPMorganChase, NATIXIS
Rubix FX Market execution variable All accounts 15
SaudiQuote Instant & Market execution variable All accounts 9
Sterling Gent Trading Market execution variable All accounts 30+
Solforex Market execution variable All accounts 10
Sun Hung Kai Forex Market execution variable All accounts broker refused to provide information
StoxMarket Instant execution fixed & variable All accounts 2 to 10
Sucden Financial Instant & Market execution variable All accounts 15 banks
Sunbird Market execution variable All accounts 5
SVSFX Market execution variable All accounts ?
TFX Markets Market execution variable All accounts 15
TeleTrade Market execution fixed All accounts 10
ThinkMarkets Market execution variable All accounts 70 (banks via Currenex)
Tifia Market execution variable All accounts 3
Titan FX Market execution variable All accounts over 20
TopFX Market execution variable All accounts 11
Trade12 Instant execution variable All accounts 6
TradeFxP Market execution variable All accounts 4
Tradenext Market execution variable All accounts 2
TraderNovo Instant & Market execution fixed & variable All accounts 10
Trader’s Way Instant execution variable STP accounts 18
Traders Trust Market execution variable STP accounts 4 (Barclays, Deutsche Bank and Citybank)
TradersChoiceFX Instant & Market execution fixed & variable STP accounts 1 (one of: GAIN Capital, FXDD and FXCM brokers)
Tradestation Securities Market execution variable All accounts 23 (numerous market centers such as NYSE, Nasdaq, ATD, CME, CBOT)
Tradeview Market execution variable All accounts 10
TradeWiseFX Instant & Market execution variable All accounts 10
Trading 212 Instant & Market execution fixed & variable All accounts 5
TradingBanks Instant execution fixed & variable All accounts
Tradize Instant execution fixed & variable All accounts 3
TrioMarkets Market execution variable All accounts 20
Trust Capital Instant execution fixed All accounts 3
UFX Instant execution fixed All accounts 1 (broker)
Uniglobe Markets Market execution variable All accounts 5
UpFX Instant & Market execution variable All accounts 10 banks and 4 private hedge fund/brokers
USGFX Instant & Market execution variable All accounts 2
Valbury Capital Market execution variable All accounts a basket of banks
Valutrades Instant execution fixed & variable All accounts 11 (banks)
Vantage FX Instant & Market execution variable All accounts 70
Velocity Trade Market execution variable All accounts 8
Vinson Financials Instant & Market execution fixed & variable All accounts over 5
Wenn Markets Instant & Market execution variable All accounts 2
WH SelfInvest Market execution variable All accounts 15 (banks: J.P.Morgan, Citibank, Deutsche Bank, Barclays …)
Windsor Brokers Instant & Market execution variable Dynamic STP accounts broker refused to provide information
xCFD Market execution variable All accounts 5
XGLOBAL Markets Market execution variable All accounts over 30
XTB UK Instant & Market execution fixed & variable All accounts 1
Yadix Market execution variable All accounts 15
YouTradeFX Instant execution fixed All accounts 60
ZAR FX Instant & Market execution variable All accounts 5+

No Dealing Desk means STP

Any Forex broker that doesn’t run a dealing desk nowadays is called an “STP broker”.

But STP brokers can be different:

Broker A – a no dealing desk IB (introducing broker) who simply passes all client orders to the Prime broker – calls it “STP”
Broker B – a no dealing desk broker, who fills client orders himself using Instant execution, and then immediately (and automatically, without human intervention) offsets 100% of those orders with own liquidity providers – calls it “STP”
Broker C – a no dealing desk broker, who passes all client orders directly to the liquidity providers using Market execution – calls it “STP”

What kind of STP is each one of these brokers?

QUICK BASICS

STP – Straight Though Processing – means that there is no dealing desk involved in quoting & controlling market prices (no market making), but instead all orders are passed through to Liquidity Providers (other brokers and banks), where they are executed at the bid/ask rate given by those Liquidity Providers.

So, an STP broker with no dealing desk will direct all orders to Liquidity Provider(s). What happens next?

A Liquidity Provider (LP) always acts as a Principal and a Conterparty to your trade. An LP takes the other side of your position, while looking to make profits by closing this position later in a trade with another party.
(Same as with ECN brokers, who pass your trades to an ECN pool, where other liquidity providers – banks, hedge funds, brokers, investors – become a counterparty to your trade).

Thus, in the end your order always meets a Liquidity Provider, who is a final Counterparty to your trade.

3 ESSENTIAL COMPONENTS of an STP

There are 3 essential components that will help you to learn more about any STP broker:

1. Depth of the liquidity pool (number of liquidity providers)
2. Type of the spread (fixed or variable)
3. Type of execution (instant or market)

1. Liquidity providers and Depth of the liquidity pool. Why it matters?

Unlike ECN brokers who send orders to ECN liquidity pools with a large number of liquidity providers trading on the Interbank, an STP broker has it’s own “internal liquidity pool”, which consists of a smaller predetermined number of liquidity providers – only those with whom an STP broker has signed a business contract. Those Liquidity providers will then compete for providing the best bid/ask rates for orders coming from an STP broker.

The more there are liquidity providers in the system – the deeper is the liquidity pool.

It’s worth mentioning that if an STP broker has only one Liquidity Provider (LP), there will be no price competition among LPs, and therefore it’ll be equal to just adding yet another “middleman” into the trading. These days Forex brokers try to have more than one liquidity provider to be able to offer deeper liquidity, better bid/ask quotes and, as a result, lower spreads.

2. STP spreads: fixed vs variable?

STP brokers nowadays are known to offer both types of spreads: fixed and variable.

An STP broker with variable spreads works in a way similar to ECN model (but inside its own internal liquidity pool): while liquidity providers compete to offer the best bid/ask prices, an STP broker will pick the best Bid price from one liquidity provider and the best Ask price from another liquidity provider and deliver the best current spread to own clients (+ own small mark-up, which allows an STP broker to earn its profit).

An STP broker with fixed spreads won’t adjust spreads for the clients based on the lowest bid/ask prices offered by Liquidity providers. The spreads will remain fixed all the time.
If an STP broker has only 1 liquidity provider, this Liquidity Provider will act as a single counterparty to all client trades. In this case traders are at the mercy of the liquidity provider, who decides which prices to quote and when.

If there are several liquidity providers, but the spreads remain fixed, this means that an STP broker uses its own back-office price matching engine, which ensures that a broker is able to make profits on spread difference. To do that, a client is charged a fixed spread, which is higher than the best available rate a broker can get from the LP(s). A broker then earns on the spread difference while immediately hedging this trade with an LP at a better rate.

3. Instant vs Market execution?

As practice shows, when it comes to reading about trading advantages on brokers’ sites, the term “Instant execution” can be used differently:

Version 1: “Instant execution” in reference to the speed of order execution: fast, instantaneous order processing.
Version 2: “Instant execution” in reference to the method of order execution: an execution technology used on the trading platform. (Traders can find it in the order window when they open/close positions).

We’re interested in the second definition – “Instant execution as the method of platform order execution”.

Instant execution means that the order won’t go to the market (it’ll be instantly filled by your broker).
Market execution means the order will go to the market (where it’ll be filled based on available quotes from the liquidity providers).

STP brokers who offer Market execution provide true Direct Market Access (DMA) trading to their clients.

Summary

A summary – conditions comparison – for all STP brokers:
Fixed spreads Spreads quotes come from the broker, or from just 1 liquidity provider Variable spreads Quotes come from several liquidity providers, with spreads generated based on the best bid/ask quotes from liquidity providers
Instant execution Client orders are filled by the broker, who then may (or may not) offset own risks with liquidity providers – therefore it’s a less transparent model Market execution Client orders go to the market, where they are filled by liquidity providers – more transparent model
One liquidity provider No price competition, one liquidity provider controls the width of the spreads Several liquidity providers Liquidity providers create price competition, which results in better spreads for the clients.

Copyright ©100Forexbrokers.com | All Rights Reserved

Broker discussion area