If you are new to trading forex, you’ll benefit from trading orders through a STP broker. This is because STP helps you avoid a Market Maker putting the rates up if, for instance, there is a major financial news announcements.
Most forex traders prefer STP brokers because they have No Dealing Desk (NDD) so one can react quicker to market events and have orders filled faster.
Choose your quick section of our best STP Forex Brokers below
Our 10 Best Handpicked STP Forex Brokers Revealed:
STP brokers provide access to a wider pool of liquidity providers and true interbank market structures, offer fixed and variable spreads and pricing is often lower than what Market Makers offer
CM Trading
Founded 2012
Regulated FSCA, FSP
Headquarters South Africa
Tradeable assets Currencies, commodities, indices, stocks, crypto, futures
Trading platform MT4
Trading desk STP, ECN, Market Maker, NDD
Minimum deposit $250
FXGiants
Founded 2016
Regulated ASIC, FCA
Headquarters United Kingdom
Tradeable assets Currencies, commodities, indices, stocks, crypto, futures
Trading platform MT4
Trading desk Bank, Dealing Desk, ECN, STP
Minimum deposit $100
eToro
Regulated ASIC, CySEC, FCA, MiFID
Headquarters Cyprus
Tradeable assets Currencies, commodities, indices, stocks, crypto
Trading platform eToro platform
Trading desk STP, Market Maker, NDD
Minimum deposit $200
FBS
Regulated CySEC, IFSC
Headquarters N/A
Tradeable assets Currencies, stocks
Trading platform MT4, MT5
Trading desk STP, ECN, NDD
Minimum deposit $1
HotForex
Founded 2010
Regulated CySEC, DFSA, FCA, FSA(SC), FSCA
Headquarters Cyprus
Tradeable assets Currencies, commodities, indices, stocks, bonds, crypto, futures
Trading platform MT4, MT5
Trading desk DMA, ECN, STP
Minimum deposit $5
IronFX
Founded 2010
Regulated ASIC, CySEC, FCA
Headquarters Cyprus
Tradeable assets Currencies, Commodities, Indices, Stocks, Crypto, Futures
Trading platform MT4
Trading desk STP, ECN, Bank
Minimum deposit $100
JustForex
Founded 2012
Regulated Pending
Headquarters Belize
Tradeable assets Currencies, commodities, indices, stocks, crypto, futures
Trading platform MT4
Trading desk ECN, NDD, STP
Minimum deposit $1
Pepperstone
Founded 2010
Regulated ASIC, BaFin, CySEC, DFSA, FCA, SCB
Headquarters Australia
Tradeable assets Currencies, commodities, indices, stocks, crypto, futures
Trading platform cTrader, MT4, MT5
Trading desk Bank, DMA, ECN, NDD, STP
Minimum deposit $150
RoboForex
Founded 2009
Regulated IFSC
Headquarters Belize
Tradeable assets Currencies, commodities, indices, stocks, crypto
Trading platform cTrader, MT4, MT5, Proprietary
Trading desk DD, ECN, MM, NDD, STP
Minimum deposit $10
XTB
Founded 2002
Regulated CNMV in Spain, CySEC, FCA, IFSC, KNF
Headquarters Poland
Tradeable assets Currencies, commodities, indices, stocks, bonds, crypto, futures
Trading platform MT4, xStation 5
Trading desk MM, STP
Minimum deposit $0
What is a STP forex broker?
STP stands for Straight Through Processing. This is a type of Market Making broker but they usually present their own bid-ask quotes which are relative to those of the interbank. STP brokers pass all or some of a client’s trades directly to liquidity providers for execution and make profit by charging a small fixed markup on every trade (usually 1 pip).
STP forex brokers do not process clients’ orders through a Dealing Desk (DD). This means there is no middlemen involved in facilitating trades which gives STP brokers the capacity to instantly process their clients’ orders. They also do not send re-quotes to clients.
The advantage of trading with a STP forex broker is speed of orders and clients can trade without limit. STP brokers work with several liquidity providers which allows them to get better fills for their traders. The liquidity providers used by STP forex brokers are a combination of banks, large brokers, hedge funds or investment corporations.
Why should you trade with a STP broker?
Best for new forex traders
STP forex brokers are the best type of brokers for beginner traders. This is because you can avoid Market Makers putting the rates up which usually happens off the back of a big financial new announcement. This is also when orders are rejected.
Fast execution of orders
STP brokers send traders’ orders directly to the market with No Dealing Desk (NDD) intervention. Basically, STP brokers generate their own bid-ask prices; although many offer the option of ECN and NDD. There are no re-quotes or delays in filling orders. STP orders are executed fast at the best available price, with just a small fixed markup (usually 1 pip) for the broker.
Process completely electronic
There is no manual interference (No Dealer Desk) which means STP is completely electronic. In fact, the old-fashioned dealer desk system is redundant with STP. Instead, STP brokers use technology to implement an automated payment process which means payment transactions for traders are much faster.
The STP broker model is widely considered to be more efficient than the traditional brokerage payment system which is why more and more forex brokers are offering STP.
No re-quotes
No re-quotes is one of the main benefits of using a STP broker. This means there aren’t any unnecessary delays on orders, thanks to the advancement of the FIX (Financial Information Exchange) protocol. The main goal of STP is to make order execution times faster and reduce slippage and re-quotes. This means forex traders get the best possible prices.
STP forex brokers and their clients experience honest and fair trading with STP. The trader benefits from faster orders and better prices and the brokerage makes a profit from the spread fee on every trade.
Variable and fixed spreads
STP forex brokers can offer fixed and variable spreads. Most STP brokers offer variable spreads due to the changing bid and ask prices. This is because they use banks or large brokers as their liquidity providers on the interbank market.
A STP broker always makes profits as long as the clients conduct trades via an STP trading platform. They do not work against a client and all they add is a small markup on the spread which they get from the liquidity provider. This markup is the profit a STP broker makes.
Direct access to liquidity providers
STP forex brokers bypass the dealing desk and pass orders straight onto liquidity providers. These providers can be anything from banks to large brokers, hedge funds and investment corporations. Liquidity providers have full access to the interbank market. The best STP forex brokers will have access to a large number of liquidity providers and each one will quote a bid-ask price.
Lower fees
STP forex brokers use a No Dealing Desk (NDD) model so they incur fewer costs because they don’t have to pay salaries for desk dealers. Their spreads are generally very competitive and usually lower than Market Makers.
The most important thing is STP brokers never make profits on clients’ losses. This is because the brokerages gain their net from a number of executed orders and are more interested in the trading sizes.
More transparency
Trading with a STP forex broker means more transparency. This is due to the fact that the brokers take a neutral position at all times, regardless of whether you make a profit or not. There is No Dealer Desk (NDD) so your trades are entered in a true market position as opposed to one where the Market Makers have created their own payment systems.
Anonymity
Trading through a STP forex brokers ensures there is anonymity. This is particularly good for scalpers because they don’t have to worry about slippage and re-quotes, better interbank rates or access to more liquidity.
The STP brokers essentially allow you to connect directly with the liquidity providers via the STP platform. This means there is a higher degree of ‘invisibility’ when trading through a STP broker. Basically, trading through a STP broker means no-one knows your identity. You remain completely anonymous and trades are done in true market conditions with impartial prices.
Forex Trading Africa Disclaimer
Forex is a complex instruments and trading forex involves a high risk of losing money rapidly due to leverage. You need to understand how forex trading works and decide whether you can afford to take the risk of losing money on trade orders that do not go your way.
Forex Trading Africa annually reviews brokers regarded as the best in the world and provides information on the products, fee structure, market analysis and service they offer. We aim to provide important information for you to base your decisions on when choosing the right forex broker for your needs.