STP Forex brokers is the most diverse group when it comes to trading conditions. STP broker Order execution: STP available on accounts: Number of Liquidity providers: Morgan, Citibank, Deutsche Bank, Barclays An LP takes the other side of your position, while looking to make profits by closing this position later in a trade with another party.
Same as with ECN brokers, who pass your trades to an ECN pool, where other liquidity providers - banks, hedge funds, brokers, investors - become a counterparty to your trade.
Thus, in the end your order always meets a Liquidity Provider, who is a final Counterparty to your trade. Depth of the liquidity pool number of liquidity providers 2. Type of the spread fixed or variable 3. Type of execution instant or market. Unlike ECN brokers who send orders to ECN liquidity pools with a large number of liquidity providers trading on the Interbank, an STP broker has it's own "internal liquidity pool", which consists of a smaller predetermined number of liquidity providers - only those with whom an STP broker has signed a business contract.
It's worth mentioning that if an STP broker has only one Liquidity Provider LP , there will be no price competition among LPs, and therefore it'll be equal to just adding yet another "middleman" into the trading. The spreads will remain fixed all the time.
If an STP broker has only 1 liquidity provider, this Liquidity Provider will act as a single counterparty to all client trades. In this case traders are at the mercy of the liquidity provider, who decides which prices to quote and when.
If there are several liquidity providers, but the spreads remain fixed, this means that an STP broker uses its own back-office price matching engine, which ensures that a broker is able to make profits on spread difference. To do that, a client is charged a fixed spread, which is higher than the best available rate a broker can get from the LP s.
A broker then earns on the spread difference while immediately hedging this trade with an LP at a better rate. As practice shows, when it comes to reading about trading advantages on brokers' sites, the term "Instant execution" can be used differently:. We're interested in the second definition - "Instant execution as the method of platform order execution". Instant execution means that the order won't go to the market it'll be instantly filled by your broker.
Market execution means the order will go to the market where it'll be filled based on available quotes from the liquidity providers. With instant execution and fixed spreads would be a market maker. With instant execution and fixed spreads could be an STP. I'm in the same boat.. Well, unfortunately, since there is no central regulator for Forex exchange, anyone can open a site and "become a broker over night".
We should be vigilant! Say, would you bring your money to a newly opened bank? So why do traders open accounts with novice brokers and then complain about being dumped? They knew the risks. Go to an old broker, make sure it's got registration and regulation preferrably in the US, UK, Australia, Switzerland and may be a few other countries, where Forex regulation is well established , and in such way minimize your risks at the very least.
Still yet is properly answering to their clients and not ready to provide the information as such. Kind request to every one dont use iktrust. Trading orders are sent, evaluated, matched and confirmed by computers. Institutional Forex doesn't need leveraged trading, since there is no real need to "help" institutional clients scale up their investments in order to participate in trading: I have an account at Iceberg Brokers for two weeks.
The account opening was pretty straight forward it took 3 days from first contact to have my collateral at my account and I was able to trade. They really do not have dealing desk, no spykes, no stop hunting, no commission.
Their platform is Metatrader4. Their support was very helpful and their spreads are very good. I asked them about equities and different platforms they will have equity trading whithin a month and they will offer more platforms like Realtick. I only can recommend this firm to everyone. You can check their website: Can u guide me. This link should answer it plenty: I believe it's not a fair game trade on that broker.
Just getting away from Oanda 3 long and miserable years! Mostly of the reviews around the internet are outdated. Anything good from them beside the fact of being Swiss? I think actiwincapitals doing wonderful job. EA friendly good broker in the world. Have used them for a while on demo, and are satisfied with them and their MT4 platform.
I'd trust the support. There is no reason to lie to customers. Though the conditions they offer are very suitable for Market making: On the quick look there is no mentioning of conflict of interests in their client Agreement.
So, we'd assume it's STP, unless proven otherwise. Sorry, can't recommend brokers. Moreover, starting your own brokerage company requires more in-depth research of partners. For regulatory bodies in Mid East, please follow: Instant execution - you're trading with a market maker. Market execution - you're trading with STP. Both brokers offer only Market execution of orders, which cannot be "MM", but rather could be one of the following: Interactive Brokers is the only one I know in these lists that provide access to 13 banks and to the interbank liquidity.
That is lower than anyone, except perhaps Dukascopy. The others, you trade directly agaist them. And they have no liquidity. They trade a parralel retail market design to get them creamed.
Like sheep customers managed by wolves forex retail brokers with "no commission". Commission is so much cheaper and the brokers who charge commissions are transparent, with no conflict of interest.
Spreads are extremely expensive compared to commissions, making trading and winning in these conditions virtually impossible.
I want to share one very detailed answer about liquidity and bridges from TheCollectiveFx, which I think might be useful for traders like me who likes to ask many questions. My question to TheCollectiveFx was: Is it like Integral? I'm trying to compare it to brokers who simply have, say, 6 banks in the liquidity system.
While you have 1. Hope you can understand the general point. The reply from TheCollectiveFx: In order to have multiple banks then that would require multiple bridges and that would result in multiple symbol sets e. There are some bridges that will connect to multiple banks directly and feed a single symbol set but truthfully those are very few and far between because the technology for routing the trades does not work.
If you see a broker tell you that they have 6 or 10 or 25 banks that they trade with then that is more than likely an untruth, what they really mean is they connect to ONE feed that has multiple contributors. This is exactly how Integral, Hotspot, Currenex etc all work. These connect to multiple banks and then feed that as a Best Bid Best Ask quote through the data feed as a quote. Any orders get routed to the bank that made the best quote.
However, in order to trade with any of these or their equivalents then a single bank or prime broker needs to buffer the trades. The bank or prime allow multiple simultaneous lines of credit at each of the contributing banks and without them a separate deposit amount would have to be lodged with each bank. The prime bank does not care where a trade ends up, its job is to route trades efficiently and maintain margin and capital requirements.
In short, I doubt there are any true MT4 brokers with multiple direct bank feeds, that is more mis direction than anything else. They may certainly have a single connection to a single prime bank who then connects to many other banks, but there won't ever be a direct connection from broker to each and every bank. Consider that each brokers feed is a composite feed from a single prime bank connected to multiple providers. Our data feed is exactly as above, we have a single bank connection who then connects us to multiple other banks.
Unfortunately in this MT4 world too many people make too many misleading claims. At last count I think we had 27 contributing banks to our composite feed, although in reality there are really only about 12 that matter. I hope the answer isn't too complex or misleading, but in short consider that unless the broker is giving you multiple unique symbol sets to trade then their feed is a composite feed too.
If the one feed goes down then all go down, yet if they were truly connected to multiple banks directly then if one failed then all that would happen is that spreads would widen, yet the feed would survive. With a single liquidity provider such as ours then ALL orders are routed to our bank who have quoted us the Best Bid Best Ask from all of the contributing banks that they deal with.
Any order is then routed to the ultimate quoting bank for filling. That may actually be our prime bank as they are a market participant too, but only if they are the Best Bid Best Ask at the time.More...