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Trade
What is STP Forex?
We continue to view the types of trading accounts the foreign exchange market. In previous article we told in detail about all the features of an ECN, and this time we will talk about STP accounts (Straight Through Processing).
What awaits the trader from my account? Perhaps, that transactions would be moved to the market, commissions and spreads will not "bite" and all operations will become open very quickly.
It is for these reasons experienced currency speculators turned their attention to trading account with the principle of execution NDD (No Dealing Desk). This technology pass-through output of the application client on the market have ECN and STP account that allows to make transactions without the intervention of a broker.
The main feature of STP Forex trading is a transmission request from the client and one very specific company. The broker may have arrangements with only one liquidity provider, for example, a Bank, and can with several.
In the first case, when the trader submits the application for conclusion of an agreement, it is transferred immediately in the Bank with which the broker. In the second case, if the company's liquidity is provided by several banks-partners, the evaluation of proposals. Consider a simple example of application transfer the customer to buy 1 lot of EUR/USD currency pair:
• first Bank - 1.3450
• first Bank - 1.3450
• third Bank - 1.3449
The application will be processed by a third Bank, as its offer was the most advantageous for the client. All of these actions happen instantly, knowingly trading accounts where transactions are processed via the NDD, as the fastest on Forex.
Features STP accounts
The main feature of STP accounts on Forex is the conclusion of all transactions of the trader on the market without pre-treatment broker. In this case, the brokerage company makes no sense stop You from making money because it will not be at its expense. The company makes a profit exactly for the services of the intermediary in delivery of the application speculator liquidity provider.
Brokers that offer STP accounts:
• Review FXopen
• Review AForex
Of course, if you plan to work in the market with little capital, for example, on a cent account, it is unlikely to be able to count on the real STP. All the major banks providing liquidity to the brokerage organizations that do not really need a cent of the transaction. Here we should be talking about more significant amounts.
Most brokerage companies offer STP deposits from a few hundred dollars, and some organizations even from a few thousand usd. Sometimes there are different cent NDD account, but it is better to treat them as marketing activities of brokers.
All accounts with NDD are often used by experienced traders increased requirements to trading conditions. When it comes to trade large sums of money, it is especially important to work with a broker that honestly displays all of the customer's application for market, and becomes interested in his losses (talking about "Forex-kitchens").
STP account is fast execution, no restriction at the time of surgery, the ability to set pending orders close to the market price and work not against your broker.
If a person plans to do scalping in Forex, he must first pay attention to the NDD account, because no one here does not prevent this style of trade.
Broker fee the trader pays the spread and the Commission that is transmitted is higher. The broker is truly interested in the success of the client, who trades at one of the deposits with NDD, so conflict of interests will not. STP is a great modern version of a trading account, designed for those who want to work with real counterparties and wishes to conclude agreements without any restrictions.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 323
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