STP (Straight Through Processing) is a commonly used phrase in financial markets trading, but for many, the advantages, and benefits of STP trading remains unclear. In this article, we look to describe STP trading and uncover for all readers what it means.
There are very limited, specialist Brokers offering its clients the opportunity to trade the markets using STP execution, and traders using specialist strategies and systems like HFT, scalping, hedging, expert advisors, news trading and profitable trading approaches have the greatest benefits of switching to an STP Broker.
These specialist strategies can only succeed when there is no conflicts of interest between the broker and the trader, and the reason for that is that most retail brokers generate profits that are based on client’s losses, meaning that a client deposits $1,000 trades and losses $1,000, the broker stands to profit $1,000 from the losses, and this in turn creates a conflict of interest between Broker and trader. However, STP brokers make money on volumes traded and as such make their platforms the most attractive to encourage success and higher volumes.
Market Making brokers implement restrictions on traders, and many are specifically targeted to cripple the potential profits that such trading strategies can easily generated if unrestricted. Restrictions can include enforcing minimal timeframes that trades must remain open, minimum market distances, and limit the number of requests that any auto-trading system can submit to the servers. Of course, failure to comply will lead to exclusion and can lead to a waste of time and money for the trader.
An STP broker on the other hand offers all traders the freedom, flexibility and confidence to trader without any such restrictions. This is because the broker passes on all trades received on the platform directly on to the banks, ECNs and execution venues in the brokers liquidity pool.
This process is done anonymously, and ensures that the trader’s identity, trading system, stop loss, take profit and any other information remains private. The order filling venue simply gets an instruction to buy or sell an order, and no other information, keeping traders as always protected as possible.
Moreover, traders experience unlimited trading conditions including the best spreads, fastest fills, least slippage and the most institutional trading experience possible. With a TRUE STO broker, you will be able to trade from 0.01 to 1,000 lots per ticket, you will be able to set your SL and TP anywhere, and you won’t be limited to any maximum lots per trade or simultaneously, which are all popular tricks of market marking brokers to restrict profit making.
Yadix is a true STP Broker that for more than 12 years, has been offering great execution advantages for traders and supports profitable and demanding trading strategies that are often excluded from other brokers with leading conditions, low costs and unrivalled execution quality.
Some execution benefits all traders should consider before choosing a Broker:
NO DEALING DESK: Orders are executed directly to leading liquidity providers anonymously with transparency, fairness and no dealing desk intervention.
NO RE-QUOTES: Orders are executed using market execution and ensures that there is no dealing desk intervention, last look or re-quotes.
NO STOP LOSS HUNTING: Orders are executed anonymously, the liquidity providers receive only the commands to open or close Market, Limit and Stop orders.
NO STRATEGY RESTRICTIONS: No conflict between STP Broker and Client allows Yadix to offer real trading freedom for clients to operate profitable strategies.
DEEP LIQUIDITY: The advantages of deep liquidity pools are lower execution spreads, better quality chart ticks and higher fill accuracy.
BETTER ORDER FILLING: As Yadix Broker uses 14 liquidity providers, the platform receives as much as 40% more prices than traditional brokerage houses, and therefore orders are filled quicker, at better prices and with greater accuracy.
Sign up for an STP Broker account today to benefit you trading style: Superior Order Execution & Exceptional Pricing (yadix.com)
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