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.
STP Broker
Features
Spreads
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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
Variable
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