Finding a reliable and transparent broker is a major concern for traders. Straight Through Processing (STP) brokers have gained considerable popularity over the years because of their commitment to fast and direct order execution with no dealing desk. STP brokers offer traders a gateway to enhanced trading experiences through competitive pricing and features and tools that help smooth the way in meeting financial objectives.
There are scores of STP forex brokers in the industry, but some stand out as the best in the industry. Here are Benzinga’s choices of the best STP forex brokers.
Quick Look: Best STP Forex Brokers
- Best for Beginners and Advanced Traders: eToro
- Best for Fast Execution Speed: Swissquote
- Best for Advanced Copy Trading: RoboForex
- Best Trading Platform: IG Group
Best STP Forex Brokers
Here are a few of the best STP brokers in the industry today.
1. Best for Beginners and Advanced Traders: eToro
CFD trading is not available to U.S. users. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Social trading broker eToro operates in over 100 countries and boasts 30 million users. Tradable assets include contracts for difference (CFDs) for forex, cryptocurrencies and commodities. Traders have access to 30:1 leverage.
A deposit of $50 and 10 minutes of your time is all it takes to start trading. eToro charges no more than the spread, part of which is refunded if you lose a significant portion of your funding on a trade. The trading platform is easy to use and gives you access to over 3,000 tradable assets, including stocks, exchange-traded funds (ETFs), cryptocurrencies and CFDs. Copy trading is a great feature for those new to trading, as they can learn from skilled traders. Advanced traders can make an income from allowing beginners to copy their trades.
Pros
- Over 3.000 tradable assets
- Fractional shares available
- Social trading
- Easy-to-use platform
Cons
- $5 withdrawal fee
- $10 inactivity fee after 12 months
2. Best for Fast Execution Speed: Swissquote
Established in 1996 in Gland, Switzerland, Swissquote is a banking group that has become one of Switzerland’s leading providers of online foreign exchange (forex) trading and financial services. The company went public in May 2000, and its stock trades on the SIX Swiss Exchange under the symbol SQN.
Swissquote provides a wide range of financial services in Switzerland and the rest of Europe, the Asia-Pacific region and the Middle East. The company maintains offices in Bern and Zürich, Switzerland, London, Luxembourg, Malta, Dubai, Hong Kong and Singapore. It employs 952 people.
Swissquote offers clients extensive resources to trade foreign currency and other assets as well as providing excellent trading platforms with a wide variety of research tools.
Pros
- Wide range of tradable assets
- Excellent trading platforms
- Quantitative asset management (QAM)
- Robo-Advisor for automated trading
Cons
- Not available in the U.S.
3. Best for Advanced Copy Trading: RoboForex
In business since 2009, RoboForex boasts over a million clients in 169 countries. Clients can choose from a vast portfolio of tradable assets across nine asset classes. There are five account types with features to suit different skill levels and trading strategies.
The trading platform is easy to use and has a complete set of trading tools, market analysis and advanced charting. Users also have access to copy trading and a demo account. Trades happen on multiple platforms, including MT4 and MT5. RoboForex also offers a generous bonus scheme.
Pros
- Supports several trading platforms
- 24/7 multilingual customer support
- Advanced copy trading
- Tradable assets across nine asset classes
- Bonus scheme
Cons
- Not available in the U.S. and several other jurisdictions
4. Best Trading Platform: IG Markets
- Best For:Forex Execution for U.S. and Global Traderssecurely through IG Markets's website
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
One of the world’s biggest brokers, IG Markets, was launched in 1974. The listed company offers traders access to more than 17,000 markets to trade assets like forex, shares, commodities and indices. The intuitive and easy-to-operate proprietary mobile trading platform mirrors the desktop version with full functionality. IG also supports the use of MT4. The IG platform offers real-time pricing and news feeds. You can also set real-time alerts and try out the demo account.
Pros
- Intuitive, easy-to-operate trading platform
- A wide range of assets, including 80 currency pairs
- Algorithmic trading
- Extended trading hours on some markets
Cons
- Hidden fees like inactivity and live chart fees
- U.S. traders can only access forex markets
What is an STP Forex Broker?
An STP forex broker routes client orders directly to liquidity providers, like banks or other financial institutions. There is no third-party intervention or dealing desk manipulation. STP brokers are intermediaries, connecting traders and the interbank market.
Pros of STP Forex Brokers
- No dealing desk intervention: STP brokers eliminate the conflict of interest that may arise with brokers who operate a dealing desk, as they do not act as the counterparty to the trader's trades.
- Market transparency: STP brokers provide traders access to real-time market prices and liquidity. This ensures transparency and fair-trade execution.
- Quicker execution: STP brokers send orders directly to liquidity providers, so they quickly execute trades, reducing slippage.
- Better pricing: The access to many liquidity providers allows STP brokers to offer competitive bid and ask prices.
Cons of STP Forex Brokers
- Limited control over prices: STP brokers rely on liquidity providers for pricing, so the broker doesn’t control the spreads. This may result in wider spreads during periods of low liquidity or high market volatility.
- Conflict of interests: STP brokers can trade against their clients.
Choose the STP Forex Broker to Match Your Financial Strategy
Whether you're an experienced trader or just starting, these top STP brokers offer a combination of progressive technology, robust trading platforms and a wide range of assets. Every trader is different, and the best STP broker for you is the one that matches your financial strategy and trading preferences.
Frequently Asked Questions
Which is better an STP or ECN?
Whether STP or ECN brokers are best depends on your goals and budget. ECNs are more transparent, and there are no conflicts of interest. STPs are more budget-friendly.
What is the difference between an STP broker and a market maker?
An STP broker matches buyers and sellers in financial markets. Market makers are financial institutions that ensure market liquidity by providing funds for financial asset trades.
How do STP brokers make money?
STP brokers typically make money on the spread, which is the difference between the asset buy and sell prices. Brokers may also charge other fees, like commissions or management fees.
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