STP means Straight-Through Processing, meaning that all the process of trading is carried out electronically without any manual interference. Normally a trading process is completed in three business days, thanks to STP for reducing the time. STP broker is the broker who operates and manages a STP platform. STP broker don’t have to use nay typing or nay other manual efforts to complete the trade. The time required by STP platform to complete a whole trade is normally less than a minute.
Some major pros of STP Forex Broker include
– The best advantage that would get from a STP forex broker is the quick processing of your trades. Every STP forex broker will execute your orders within no time. If you really don’t mind an unregulated broker, visit AccentForex review for the best choices. With minimum spread, lowered re-quotes, and lots of additional advantages, they might absolutely provide you with much better than most other brokers.
– Anonymity is another important feature that you will be getting while using STP network for trading. This means that all of your orders will be executed automatically. As there is no dealing desk involved in STP network, so your identity will remain secure and hidden.
– All the forex STP brokers offer correct currency prices, which is a great advantage for serious FX traders. For a 1 pip fixed spread for major forex pairs, go to 1PipFix review to get a practical review of a great STP broker to use.
– Using a STP network, you can easily avoid requotes, this is because all the trades are executed immediately, which kills the need of requotes. This is one of the biggest and most important advantage/feature of STP platform.
– The amount of risk is less in a STP platform as compared with other platforms.
– You will never have any disagreement of interest with your STP broker.
– Most of the brokers will never trade against you and will never let you lose your trade. This is because this will adversely affect their reputation and it can also result in the termination of their license. Almost all the STP platform brokers will bear the risk themselves and will never let you lose anything.
Here are some of the important disadvantages of STP broker
– Mostly, STP brokers will act as Market Maker or MM broker. As a forex trader, you will always have the difficulty in judging that either your broker is currently acting as a STP broker or MM. With the passage of time and with experience, you would be able to judge the moves of your broker. So you need to keep your eyes open all the times.
– When you will be sending in a very large order to your broker, the broker will route your order towards the forex market. So, there is a probability that prices might have changed in the market when you order will reach the marker. Your order in such case, will not be executed and will be sent back to you for price adjustments. It’s not a healthy sign.
A STP broker will never execute your orders if he/she may feel that you will lose the trade. All in all, STP forex brokers are pretty good and do carry a lot of advantages and features, don’t just keep looking the disadvantages only. To gain success being a trader, you’ll discover these day trading guide ideas useful on day trading guide to find a profitable day trading tactic.
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Tags: currency trading, finance, stp forex broker, straight through processing