Best STP Brokers
The STP broker businesses model has several benefits for retail forex traders vs ECN and dealing desk brokers. In this review, we’ll discuss the meaning of STP and its pros and cons. We also list the best STP brokers for forex and CFD trading.
Top 6 STP Brokers
Here is a short overview of each broker's pros and cons
- Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
- FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
- UnitedPips - Operating since 2016 and based in Saint Lucia, UnitedPips is a non-dealing desk broker serving clients in over 137 countries. It specializes in CFD trading across around 80+ assets with high leverage up to 1:1000.
- RedMars - Launched in 2020, Cyprus-based RedMars offers competitive spreads on more than 300 instruments and leverage up to 1:500. Three accounts are available - Standard, Pro and VIP - serving a range of budgets and experience levels, with a fast and fully digital account opening process.
- Capitalcore - Capitalcore is an offshore broker, based in Saint Vincent and the Grenadines and established in 2019. Traders can choose from four accounts (Classic, Silver, Gold, VIP) with lower spreads and larger bonuses as you move through the tiers. Where Capitalcore distinguishes itself is its high leverage up to 1:2000 and zero swap fees, though these don’t compensate for the weak oversight from the IFSA and paltry education and research.
- Sage FX - SageFX is an offshore, unregulated CFD broker that offers highly leveraged trading on forex, stocks, commodities, indices and crypto via the TradeLocker platform. Traders can access commission-free trading or an ECN account with tight spreads. While the broker's regulatory status is weak, it does provide segregated accounts and two-factor authentication.
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Christian Harris, Reviewer
Interactive Brokers Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies |
| Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower |
| Minimum Deposit | $0 |
| Minimum Trade | $100 |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries, most recently the Saudi Stock Exchange.
- The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
Cons
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Stocks, Futures, Futures Options |
| Regulator | NFA, CFTC |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
Cons
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
UnitedPips
"UnitedPips is ideal for traders seeking leveraged trading opportunities, the security of fixed spreads, and the flexibility to deposit, withdraw, and trade cryptocurrencies - all in one sleek TradingView-powered platform."
UnitedPips Quick Facts
| Bonus Offer | 40% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Precious Metals, Crypto |
| Regulator | IFSA |
| Platforms | UniTrader |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD |
Pros
- Although being handed off mid-chat due to shift changes during testing was frustrating, customer support is generally good with quick, helpful responses, and 24/7 support via phone and email for regional teams is a definite advantage.
- UnitedPips’ platform performs well, with an intuitive design that will appeal to beginners, while the TradingView integration delivers powerful charting tools without overwhelming users, making it straightforward to execute trades efficiently.
- UnitedPips offers impressive leverage up to 1:1000 with zero swap fees or commissions, which can enhance potential returns for day traders and swing traders looking to control prominent positions with less capital.
Cons
- UnitedPips' selection of tradable instruments is still minimal, comprising a bare minimum selection of forex, metals and crypto. There are no equities, indices or ETFs, which may be a drawback for experienced traders looking for diverse opportunities.
- Unlike brokers such as IG, UnitedPips is an offshore broker not regulated by any 'green tier' financial authorities, raising concerns for traders seeking assurance and protection under well-established regulatory frameworks.
- UnitedPips lacks comprehensive research, while the educational content for beginner traders is woeful. Compared to brokers like eToro, which offers tutorials, webinars, and advanced courses, UnitedPips offers minimal resources to help new traders understand key concepts.
RedMars
"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."
RedMars Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, Cryptos |
| Regulator | CySEC, AFM |
| Platforms | MT5 |
| Minimum Deposit | €250 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail), 1:500 (Pro) |
| Account Currencies | USD, EUR |
Pros
- The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
- The broker supports a range of flexible payment methods, including wire transfers, credit cards, e-wallets, and notably cryptocurrencies
- RedMars offers one of the best platforms for day trading, MT5, hosting 21 timeframes, dozens of analytical tools, flexible templates and algo trading
Cons
- RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
- While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
- With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets
Capitalcore
"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."
Capitalcore Quick Facts
| Bonus Offer | 40% Deposit Bonus up to $2,500 |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Metals, Stocks, Cryptos, Futures Indices, Binary Options |
| Regulator | IFSA |
| Platforms | WebTrader, Pro |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:2000 |
| Account Currencies | USD |
Pros
- The Capitalcore platform provides comprehensive charting tools and a wide range of 150+ technical indicators, ideal for detailed market analysis.
- The support team are available 24/7 and responded within minutes during testing with helpful responses.
- Capitalcore is one of the only brokers to charge zero swap fees, which may appeal to Islamic traders looking to comply with Islamic Finance.
Cons
- Capitalcore is not regulated by major financial authorities and has an unproven reputation, raising concerns about the safety of client funds.
- The web platform was inconsistent during testing, with occasional technical glitches that meant the trading platform wouldn’t load.
- Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
Sage FX
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
Tobias Robinson, Reviewer
Sage FX Quick Facts
| Bonus Offer | $1,500 trading competition |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, indices, cryptos |
| Regulator | Pending |
| Platforms | TradeLocker |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- Bonus offers and trading competitions
- High leverage up to 1:500
- Flexible accounts with STP and ECN solutions available
Cons
- Relatively narrow range of asset classes
- Not regulated by any reputable body
- Lacks educational resources and other extra features
What Is An STP Broker?
STP stands for Straight Through Processing and is a type of technology used by brokers to electronically pass trades directly to the market. STP forex brokers execute trades on behalf of clients by sending them straight to liquidity providers, such as banks or interbank exchange houses. Trades do not pass through a dealing desk, instead, they go directly to the market.
No Dealing Deck Vs Dealing Desk
STP brokers are a type of No Dealing Desk (NDD) broker, meaning they do not use a dealing desk to complete a trade. Dealing desk brokers, known as market makers, fill the opposite end of a client’s trade. They do this either by finding another client to take the opposite side or by taking the trade themselves.
Since market makers do not connect directly to the wider market, there is a limited number of clients that can take the opposite side of your trade. Therefore, often the broker will buy the stock you’re selling, for example, making the market themselves.
Regulated STP forex brokers have slightly different licenses to market makers. They are known as A-book brokers, where market makers are known as B-book.
STP Vs ECN
Another type of NDD provider is an ECN (Electronic Communication Network) broker. These are similar to STP brokers in that they both send trades directly to the market. However, ECN brokers act as a liquidity hub, bringing together banks and financial institutions that compete to take the opposing side of your trade.
Pros Of STP Brokers
STP brokers are often favoured by retail traders. Their business model comes with several benefits:
- Processing speed – The STP technology used by these brokers means that trade execution occurs electronically and at high speed. Some market maker brokers also use software to process trades, but many complete them manually via a dealing desk. This can be a slow process and can result in requotes if the market is volatile.
- Quotes reflect the market – STP brokers trade directly with the market. Therefore, their quotes accurately reflect prices. Market makers may offer artificial quotes to improve their margins.
- No conflict – Market maker brokers profit when their clients lose since they’ve often taken the other side of the trade. This can cause some brokers to operate in ways that may conflict with their client’s ability to win. For example, they might offer artificial quotes or pick and choose which orders they fill. STP brokers are linked directly to the market and so have no profit motive behind client losses. In fact, if clients profit, they’ll often invest more with the broker whose revenue will grow.
- Lot sizes – ECN brokers typically restrict trades to a minimum lot size of 0.1 – the equivalent of 10,000 units of the base currency. This is because banks and other financial institutions operate on this minimum trade size. This can be prohibitive to retail traders, who may want to trade smaller values. STP brokers can often offer lower minimum lots. Admiral Markets and XTB, for example, have a minimum lot size of 0.01 while Interactive brokers has no minimum order size – you can place a trade for as little as 1 unit of the base currency.
Cons Of STP Brokers
Since STP brokers operate with most of the benefits of both ECN and market-markers, drawbacks are limited:
- Spreads – STP brokers tend to offer wider spreads vs dealing desk brokers. This is because dealing desk brokers make money from their clients’ losses. Therefore, they do not need to make as much revenue through spreads. With STP brokers, their revenue is coming solely through the spreads and commission they offer.
- Hybrid models – Some dealing desk brokers take a hybrid approach. They may pass some trades onto the market and take the other side of the trade on others. It can be difficult to know which brokers operate in this way. Seeking clarity from the broker’s customer support team via a contact number may help.
Identifying STP, ECN & Market Maker Brokers
It can be difficult to determine if a broker is a true ECN broker, STP or market maker. Some brokers do not make their business model clear to clients. However, some clues will help you work it out for yourself:
- Minimum lot size – If your broker is offering a minimum lot size below 0.1, they are probably not an ECN broker. The lowest minimum lot sizes are usually offered by market makers and STP brokers.
- Spreads – Brokers claiming to have the tightest spreads and be the cheapest around could be market makers. They often make money from client losses and so do not need to create as much revenue through spreads. Also, ECN brokers typically offer tight spreads but charge commissions to generate profit.
- Scalping rules – Scalping is a trading strategy that utilises inefficiencies in market quotes to make a profit. Traders can make healthy returns using scalping strategies, which can hurt a market maker’s bottom line. But most importantly, market makers will find it difficult to fill orders at the speed required for scalping strategies. Therefore, forex scalping is often not permitted at market makers and is instead more common at ECN and STP brokers in most countries, including the USA, UK, Australia, South Africa and more.
Final Word O
STP brokers are those with the technology to execute forex trades directly with the market. They offer quick processing times and accurate quotes whilst allowing small lot sizes which makes them a good choice for retail traders. However, it’s not always easy to know if your broker follows an STP model. If you start to experience slippage, quotes you feel are not in line with the market or requotes that you’re not happy with, you may want to switch to one of the STP brokers in our list above.
FAQ
What Is An STP Broker?
An STP broker routes trades directly to the market using Straight Through Processing technology. They follow a No Dealing Desk model (NDD). STP brokers are usually the preferred choice for retail traders due to accurate market quotes and fast processing.
How Are STP Brokers Different From ECN Brokers?
STP brokers are similar to ECN brokers in that they both use no dealing desk models that offer direct market access. However, ECN brokers route trades to a liquidity pool and providers that they control. They also tend to offer larger minimum lot sizes of 0.1 (10,000 units of the base currency).
My Broker Offers An ECN Account, What Does This Mean?
ECN accounts promise faster execution speeds and low spreads like those that institutional traders benefit from. Your trades will be executed on the live forex market, as opposed to going through a dealing desk or STP account. The downside is that ECN often requires high minimum deposits and large minimum trade sizes.
How Can I Tell If My Broker Is A Market Maker?
Brokers may make it tricky to unpick their business model as no dealing desk brokers are often preferred by retail traders. With that said, there are some clues that you can look for. For example, stringent rules on trading behaviours, extra tight spreads and regular requotes indicate they could be a market maker.
Are NDD Brokers And STP Brokers The Same?
Yes, an STP broker is a type of no dealing desk (NDD) broker. They send your trades directly to the market rather than through a dealing desk. ECN brokers are another type of NDD broker. Dealing desk brokers are sometimes called market makers.