STP Broker
An STP broker is a type of broker that uses Straight Through Processing (STP) technology to facilitate the trading process. STP brokers are typically used by traders who want to take advantage of the speed and efficiency of the STP system. STP brokers are also known as “no dealing desk” brokers, as they do not have a dealing desk that is used to match orders. Instead, orders are sent directly to the market, allowing for faster execution and lower spreads.
History of STP Brokers
The concept of STP brokers was first introduced in the early 2000s. At the time, the traditional dealing desk model was the most popular way of trading. However, as technology advanced, traders began to realize the advantages of using an STP broker. The STP system allowed for faster execution and lower spreads, which made it more attractive to traders. As a result, the popularity of STP brokers has grown significantly over the years.
Comparison of STP Brokers
| Broker | Execution Speed | Spreads |
|---|---|---|
| Dealing Desk | Slow | High |
| STP Broker | Fast | Low |
Summary
STP brokers are a type of broker that uses Straight Through Processing (STP) technology to facilitate the trading process. STP brokers are typically used by traders who want to take advantage of the speed and efficiency of the STP system. Compared to dealing desk brokers, STP brokers offer faster execution and lower spreads. For more information about STP brokers, you can visit websites such as Investopedia, Investing.com, and Forex.com.
See Also
- Dealing Desk Broker
- Market Maker
- ECN Broker
- Forex Trading
- CFD Trading
- Spread Betting
- Margin Trading
- Leverage Trading
- Stop Loss Order
- Take Profit Order
