Top 10 Best Straight Through Processing (STP) Brokers in 2021

A clear understanding of types of forex brokers is of utmost importance for all investors, especially for forex beginner traders to choose a right broker. We can distinguish between several types of Forex brokers according to a range of criteria.

Depending on the execution of orders, forex brokers can be divided into Dealing Desk (DD) Forex brokers and No Dealing Desk (NDD) Forex brokers, which include Straight Through Processing (STP) Forex broker and Electronic Communication Network (ECN) Forex Broker.

In this article, we will focus on STP brokers and help you find the best STP brokers of 2021.

What Is STP Brokers

STP (Straight Through Processing) is a Forex brokerage model that involves sending client orders directly to the market without passing them through a dealing desk. 

In STP mode transactions are fully computerized processed on the interbank market without any broker intervention. All orders are routed to the broker's liquidity providers, and prices are executed at the bid/ask rate provided by liquidity providers. Liquidity providers can be counterpart investors, big banks or hedge funds.

Put into simple terms – STP brokers act as a middleman between you as a trader and the forex markets. STP is different from re-processing trades or dealing desk trades.

What are the Benefits of Using STP Brokers

No Dealing Desk/dealer intervention

As noted above, the STP technology requires no dealing desk. All orders are routed to the broker's liquidity providers, and prices are executed at the bid/ask rate provided by liquidity providers.

No conflict of interest

Comparing to dealing desk brokers, STP forex brokers are more straightforward in their offerings, as they usually don’t have a conflict of interest with their clients.

All client orders are passed directly to the liquidity provider, and the markets generally absorb the order without any intervention from the broker.

Competitive spreads

STP brokers offer better and faster fills because there are many competitive market bids and offers coming via their liquidity providers. Each liquidity provider quotes its own bid and ask price, allowing traders to get the best possible price.

Fair pricing and Minimal slippage

The main fundamentals of STP is to make order execution times shorter. This leads to a reduction in slippage and re-quotes, and enables you to have access to the best possible prices. 

STP brokers make money from the spreads charged for every trade, which is beneficial for both parties as far as fair and honest trading is concerned.

Therefore, STP brokers will not subject you to re-quotes, which can often be damaging to your trading endeavours.

Top 10 Best STP Brokers in 2021

We simply compared the qualifications, Min Deposit, commission and regulation of forex brokers with top picks. Here are the top 10 best Stp Brokers this year.

The top ten brokers are Swissquote, FXTM, HotForex, Axi, Admiral Markets, Orbex, FBS, RoboForex, Libertex and ThinkMarkets. The above is just partial information of these STP brokers, If you want to choose a STP broker, you can check more details of them.

Conclusion

If you are finding it difficult to make the choice between STP brokers, you should bear in mind that there are strict rules and regulations in place to protect you as a trader or investor, and the best STP brokers will be fully licenced for that reason.

Always do your research before fully committing, as brokers do differ and their products and services will vary as well. It's also advisable to perhaps start with a small scale investment whilst you find your feet.