Best Forex STP Brokers in 2023

There are two types of Forex brokers, Market Makers and STP Brokers. They differ based on market execution and price quotation methods. Some brokers offer both services at the same time, however usually when they offer both services some are suspicious that they may be applying Market Maker methods on STP accounts, as there is no way for a client to know for sure.

STP brokers or straight through processing brokers are Forex companies which execute their orders without a dealing desk or third party intervention. A dealing desk is a group of employees at the company who receive orders and send them to the market and vice versa, so in the case of STP broker’s information that has been electronically entered to be transferred from one party to another is not manually re-entered repeatedly over the entire sequence of events.

A client’s order automatically gets passed to the liquidity provider with whom the Forex broker is working. The liquidity provider is a financial institution such as bank or a hedge fund and in some cases any company which is licensed to be a liquidity provider. A lot of STP brokers will use Banks which trade on the Interbank market as their liquidity providers The Interbank market is the top level Forex market where banks exchange different currencies.

Some Forex brokers have several liquidity providers, and that increases in the quality of their execution as they can handle more orders without any delays or slow-downs.

Another big and very important part of STP brokers is that prices are sent to clients straight from the market and there are no re-quotes by the company, and that is a big advantage for traders because it means they will be receiving real prices with no intervention or manipulation, in real time and be able to trade during the release of financial news without restriction