Hi All,
we have all heard about going for a ECN broker versus the market makers.
But are you aware of the STP broker? and its advantages?
If not let me explain it to you in the most simplest form.
STP= Straight Through Processing.
Here every order is directly routed to the interbank or the liquidity provider through your broker. There is no room for any sort of manipulation. Moreover, the rates that are provided are the lowest (wholesale rates given to the big institutions and banks) . Through STP platform the orders from the retail brokers is also treated as wholesale.
Your broker will only charge you a fix % of commission/brokerage fees.
So if you really want to make some good amount of profit go for a STP platform.
Unfortunately, there are hardly any brokers who are at TRUE STP BROKER.
Very few, but it will be worth the search.
Let me know if your broker has a STP module for you to trade on !
we have all heard about going for a ECN broker versus the market makers.
But are you aware of the STP broker? and its advantages?
If not let me explain it to you in the most simplest form.
STP= Straight Through Processing.
Here every order is directly routed to the interbank or the liquidity provider through your broker. There is no room for any sort of manipulation. Moreover, the rates that are provided are the lowest (wholesale rates given to the big institutions and banks) . Through STP platform the orders from the retail brokers is also treated as wholesale.
Your broker will only charge you a fix % of commission/brokerage fees.
So if you really want to make some good amount of profit go for a STP platform.
Unfortunately, there are hardly any brokers who are at TRUE STP BROKER.
Very few, but it will be worth the search.
Let me know if your broker has a STP module for you to trade on !