STP Straight Through Processing brokers employ a no dealing desk (NDD) model. As a result, they never trade against their clients. Instead, they route all client orders directly to the interbank market. Liquidity providers (banks, other brokers, hedge funds, mutual funds) compete to provide the best possible bid/ask prices.
As a general thumb of rule: the more liquidity providers (at least 3+), the better the fills for the trader. STP brokers offer two types of spreads: fixed and variable.
What follows is a list of STP no dealing desk forex brokers with favorable trading conditions and good reputation.
XM provides STP market execution on all trading accounts (Micro, Standard, Executive). Minimum deposit required to open a STP Micro account: $5. Number of Liquidity providers: 6
Hotforex provides STP market execution on all trading accounts (Micro, Premium, VIP, Islamic, Currenex). Minimum deposit required to open a STP Micro account: $5. Number of Liquidity providers: 6
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Risk Disclosure: Trading forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.