STP BROKER – STP Broker Markets
With the changing concept of traditional trading to Online trading STP is the emerging concept. This concept is used by almost every company in the financial world to optimize the speed of transaction. In this concept all the information required for trading is entered once and after that everything is processed electronically without manual intervention of any body. The Forex market is the Foreign Exchange market and it deal in foreign currency exchange. This market is different from the regular stock market and thus the Forex traders and Forex brokers involved in Forex market are also different. The investments opportunities and spreads vary from broker to broker so it is necessary for the investors to have a complete understanding of the various brokers. Once we get an idea of the requirements we can choose the broker accordingly to our needs and convenience. Types There are broadly 3 groups of Forex traders:
Market makers ECN STP STP Broker Benefits traders with
Lowest settlement time Lowest settlement risk Fast processing
A STP broker passes client orders directly to its associates or partners, which can be large banks, financial institutions, other brokers etc.
When a market price order is received, the broker sends an order of the same volume to the liquidity provider offering the best ask/bid price of the given volume under the name of the STP broker. When the order is filled by the liquidity provider the client order is executed with a spread added/subtracted to the market execution price.