Stp Brokers - Should I Make Use Of Them?

STP stands for Straight-Through Processing which means that all the trades and trading

processes are carried out electronically without any human intrusion. Before the advent of STP, the trading activities were carried out in 3 business days, which obviously was much more risky. STP broker is the broker who operates and manages a STP platform. Such a broker doesnt use any sort of manual keying. The time required by STP platform to complete a whole trade is normally less than a minute.

Here is a list of some important advantages of a STP broker

- The most major advantage that you will get while using a STP forex broker is the fast execution of your orders. All the trades and orders will be executed immediately without any delay.

- Anonymity is another important feature that you will be getting while using STP network for trading. All of your trades and orders will be executed automatically without any human input. Lack of dealing desk in a STP platform will help you in maintaining and securing your indentity.

- All the forex STP brokers offer correct currency prices, which is a great advantage for serious FX traders.

- 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 feature is considered as one of the best features of the STP platform.

- The risk involved in a STP platform is very less as compared with other forex platforms.

- You and your STP broker will never have any conflict with respect to trades, orders, executions, interest and other aspects.

- 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. STP forex broker will bear the risk himself/herself, but will never let you lose any trade.

Some major cons of STP Broker

- Most of the STP forex brokers sometimes act as STP brokers and sometimes they act as Market Maker (MM). 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. Its not a healthy sign.

Remember, a STP broker will never execute your order(s) so that you may face any sort of loss. All in all, STP forex brokers are pretty good and do carry a lot of advantages and features, dont just keep looking the disadvantages only.

by: Ownen Moore

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