STP Forex Brokers - What is STP
STP stands for Straight Through Processing. An STP broker receives and transmits orders from their client to and from liquidity providers (for example another broker). The STP broker acting as an agent transmits orders to the liquidity provider who may transmit the order to another liquidity provider. STP is known as well as Matched Principal Trading.
STP accounts may be offered with other account types. For example, brokers may focus on providing low spreads plus a commisison charge but provide an STP account which does not have a commission charge (for example Vantage FX). As it does not have a commission charge, the mark-up is typically included in the spread, thus the spreads can be higher than for the raw spread account (with the commission charge). This type of STP account may interest traders who want features provided by the broker such as high speed order transmission but do not want to have a separate commission charge added. Or the STP account might be included as part of a range of other account types, for traders who want to focus on certain type of trading, such as Forex trading (for example Deriv).
