An STP (Straight Through Processing) broker is a broker that passes orders on to other brokers. An STP broker will not trade against you, and in fact they prefer you to win or trade a lot, because that means income for them.
Thanks.
In this case, there are brokers that are genuinely STP, and there are brokers that claim to be STP brokers. Always remember that STP (Straight Through processing) is a broker that directs orders from traders to liquidity providers or larger brokers who have access to the interbank market.
Some examples of brokers that can be considered STP are Exness and IC Markets.
You can also look for brokers that explicitly provide STP account types such as FXOpen.
@ yovi dwi :
Straight Through Processing (STP) brokers are a type of No Dealing Desk (NDD) broker, so they are not market makers or self-creating markets. This type of broker channels its clients' orders to liquidity providers (liquidity providers) who have access to interbank markets. In terms of providing price quotes, STP brokers will select several liquidity providers with the best prices to offer, after the spread is widened as the profit earned by the STP broker. Most STP brokers offer variable spreads because the spread of each liquidity provider is usually different. Liquidity providers are usually large banks or large financial institutions or large ECN brokers.
Examples of brokers claiming to be STP type:
@ Bambang:
Sorry, what kind of difference in charts do you mean? Is it a different appearance, or different price movements?
As far as we know, with the same broker, the charts are not different, neither in appearance nor in price movements. Regarding price movements, it depends on the liquidity provider of the broker.
For STP and ECN brokers, the only difference is in the spread. ECN types have smaller spreads.
@ Afwan:
It is possible as long as the broker allows trading with a scalping strategy. As explained above, an STP broker is a type of broker that forwards or channels orders to larger brokers, usually ECN-type brokers. However, if you want to scalp, choose a broker with a relatively small spread.
@ Hasan:
Larger than ECN brokers, but not significantly so. With ECN brokers, the spread can sometimes be zero if the pair you are trading is very liquid. However, when trading with an ECN broker, you will be charged a commission each time you make a transaction, and some do not allow hedging, in addition to the initial deposit funds (minimum deposit) which are usually higher than non-ECN brokers including STP type brokers.