STP Forex brokers
STP - Straight Through Processing.
STP broker is a hybrid model between Market Maker and DMA/STP. Sometime it routes your order to the market (acts as an DAM/STP broker - if you win) but sometime it does not (display it own quotes and acts as a Market Maker - if you lose).
- The good: more accurate prices and transparent compare to Market Makers broker, smaller conflict of interest.
- The bad: re-quotes and order rejections.
How STP brokers make money? They have two ways:
- Routes your order to the market and add spread mark-up (similar to DMA/STP)
- Acts as Market Maker and earn from your lose.
Is it a win-win situation where broker always profit? Probably not but it does work most of the time!
- Website: www.fxclearing.com
- Founded: 2016
- Company: FXCL Markets Ltd.
- Headquarters: Law Partners House, Kumul Lini Highway, Port Vila, Vanuatu
- Regulation: licensed as a “Dealer in Securities” by the “Ministry of Finance and Economic Management” (Republic of Vanuatu).