10 Best STP Forex Brokers in 2021

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

Founded                              2007

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

Founded                              2009      

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.

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