An STIP broker is a type of foreign exchange brokerage that uses straight-through processing (STP) to match buy and sell orders in the foreign exchange trading market.
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Best STP Forex Brokers
Here is our list of the top STP brokers.
Broker | Features | Broker Reviews | Visit |
 | * 1:1000 leverage * 210+ instruments * $15 min. deposit * Free education | ||
 | * 1:1000 leverage * 1200+ instruments * $50 min. deposit * Tight spreads | ||
 | * 1:500 leverage * $100 min. deposit | ||
 | * 1:500 leverage | ||
 | * 1:1000 leverage * 950+ instruments * Copy trading | ||
 | * Low deposit | ||
 | * 1:500 leverage * 10,000 instruments * Ultra low latency | ||
 | * 1:1000 leverage | ||
 | * 1:500 leverage * 800+ instruments * African Broker | ||
 | *1:500 leverage | ||
 | *Cryptotrading | ||
 | * 1:500 leverage * 300+ instruments * Low min. deposit | ||
 | * 1:500 leverage * $10 min. deposit | ||
 | * 1:1000 leverage | ||
 | * 1:500 leverage | ||
 | * 1:500 leverage * 80+ instruments * $200 min. deposit * Excellent support | ||
 | * 1:500 leverage * 1000+ instruments * $200 min. deposit * Crypto CFD trading | ||
 | * 1:777 leverage |
What Is An STP Broker?
Straight-through processing (STP) is a fully automated electronic payment process which allows for the entire payment process, from initiation to final settlement, to be free of human intervention. With regards to forex trading, an STP model means that the broker acts as a silent provider that connects the trader and the wider forex market.
How Does The STP Model Work?
At STP brokers, all orders are routed directly to the forex broker’s liquidity providers, and the trades are executed at the bid/ask rate provided by liquidity providers. Liquidity providers in this case are hedge funds, big banks, and investors that effectively act as counterparties to each trade. Usually, the STP broker has an internal liquidity pool that is represented by different liquidity providers and these providers compete against each other to fill the orders.
Why Trade With An STP Broker?
- More Security – An STP broker only matches trades between other market participants; it cannot trade against the client. As such, STP brokers have no financial interest in your trades.
- More Liquidity – Prices are acquired from a number of market participants instead of from just one liquidity provider. This results in better fills, tighter dealing spreads and more accurate quotes.
- More Efficiency – There are no human related errors, delays or costs associated with transactions. This is because the transactions are usually fully automated and brokers avoid having other people intervene in the deals.
How To Choose An STP Forex Broker
- Regulation – Good forex brokers are licensed by a reputable regulatory body. Look for brokers that also offer additional client fund safety and negative balance protection. Try to also look for brokers that openly state if they operate on an STP model.
- Trading Conditions – Good forex brokers will give you a wide range of trading instruments to choose from. Look for brokers that also offer you the opportunity to trade with high leverage, low commissions, and tight spreads.
- Minimum Deposits – Good forex brokers will offer at least one low-cost account type. Look for brokers with an affordable minimum deposit. Try to also find forex brokers that offer a wide selection of convenient payment methods.
For more information about the best forex brokers in Nigeria, check out our forex broker reviews.