STP Forex Brokers

Written by Miro Nikolov

Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: March 14, 2025

‹
• Jump to:
• Main Features
• What Are STP Forex Brokers?
• Advantages
• Disadvantages
• Who Should Use STP Forex Brokers?
• Tips
• Final Thoughts
›

Forex trading journey begins with choosing the right broker. You can find different brokerage models in the Forex industry. STP brokers have created a popular niche for themselves by simplifying the trade execution mechanism. But what makes them more advantageous than others? This article highlights the facts, process, pros, and cons of STP brokers.

1. 

   Fusion Markets

   Rating: 4.5

   74-89% of retail's CFD accounts lose money

2. 

   FP Markets

   Rating: 4.8

   73.85% of retail investor accounts lose money

3. 

   Pepperstone

   Rating: 4.5

   75.5% of retail investor accounts lose money

4. 

   IG

   Rating: 3.9

   70% of retail client accounts lose money when trading CFDs with this investment provider.

5. 

   IC Markets

   Rating: 4.8

   70.64% of retail investor accounts lose money when trading CFDs with this provider.

6. 

   XTB

   Rating: 3.7

   73% of retail investor accounts lose money

7. 

   Eightcap

   Rating: 4.2

   81.96% of retail investor accounts lose money when trading CFDs with this provider.

8. 

   Vantage FX

   Rating: 3.9

9. 

   Interactive Brokers

   Rating: 2.9

   55.68% of customer accounts are unprofitable (Q4 2024).

Below you can find a comparison table of the best Straight Through Processing (STP) forex brokers. We rank them based on several factors including: regulation, spreads and commissions, Trustpilot rating, trading instruments, trading platforms, deposit and withdrawal methods.

Our team has thoroughly evaluated all brokers listed below using TradingPedia’s exclusive methodology.

Main Features of the Best STP Forex Brokers

What Are STP Forex Brokers?

STP brokers deploy Straight Through Processing technology to process the orders of traders. Unlike market makers, there is no dealing desk in the STP brokerage model and your orders are passed directly to the liquidity providers including banks and hedge funds.

Advantages of STP Forex Brokers

Let’s explore the core advantages of the STP Forex broker.

1. Faster Trade Execution

   Traders who depend on quick execution can find STP brokers as their preferred choice because the process is automated and allows fast execution. Hence, scalpers may find STP brokers as their best suit.

2. Transparent Pricing

   As there is no dealing desk and each order is automatically processed, the risk of price manipulation is minimal. Therefore, the traders have an edge as the pricing is transparent.

3. Reduced Risk of Requotes

   STP brokers offer instant order execution even during volatile market hours. Hence, there are no requotes that could trouble the traders.

4. No Conflict of Interest

   STP brokers earn revenues through spreads and commissions. They do not bet against the traders. Thus, there is no conflict of interest.

5. Scalability for Traders of All Levels

   STP brokers are suitable for beginners and advanced traders alike. So, traders can kickstart their trading journey in an STP broker and scale up trading within the same broker.

Disadvantages of STP Forex Brokers

There are some limitations of STP brokers as well that you must know.

1. Variable Spreads

   The spreads are variable which could trouble you when you execute trades during highly volatile markets or when the liquidity is thin. Spreads are used to widen a great deal during such times, especially for cross pairs like GBPCAD, EURCHF, etc.

2. Lack of Transparency in Liquidity Providers

   STP brokers do not reveal their liquidity providers which creates concerns about pricing in the mind of traders.

3. Potential for Slippage

   We know there are no requotes with the STP brokers. However, variable spreads may cause slippages. Especially when news releases trigger volatility, the orders may not be filled at your desired price.

4. Higher Costs Compared to Market Makers

   Cost-conscious traders may not find STP brokers as the best ones because they involve commissions along with the variable spreads.

5. Limited Control Over Execution

   Though the technology is advanced, not every broker offers intuitive platforms. Hence, this could be a disadvantage for the less tech-savvy traders.

Who Should Use STP Forex Brokers?

Now you know about how STP brokers function and their pros and cons. You should know what type of traders should go for such brokers.

Scalpers and day traders who trade frequently may find this model suitable as the spreads are tight and execution is instant without any intervention.

Experienced traders know when not to trade or when there is a risk of slippage and wide spreads. Hence, the STP brokerage model is good for such traders.

Investors with big capital prefer a model that has no intervention or manipulation. Hence, STP brokers offer them such an environment.

Tips for Choosing an STP Forex Broker

Let’s share some tips with you on finding the best STP brokers for you.

• Regulation and Security

  Always assess a broker’s regulation, and verify it through the regulator’s website. Also, look for the security measures taken by the broker. These include 2-factor authentication, website, and data encryption.

• Execution Speed

  Go for review websites and find out what traders tell about the execution speed of a broker. Then, test the platform with a small deposit to find whether the claims about low latency are true or not.

• Spreads and Fees

  The official website usually has information about the fees and spreads. You can also create a demo account to find the real-time spreads. Low spreads and no fee deposit/withdrawal fees are the desirable conditions for the traders.

• Platform Features

  Test the platform in a demo environment to find out how the platform performs. Also, look for the value addition provided by the brokers like advanced analytics, indicators, and other tools.

• Customer Support

  Good customer support is essential for the traders. You should choose a broker that has quick and responsive customer support available through different modes.

Final Thoughts

STP Forex brokers offer an attractive alternative to traditional brokers as it doesn’t intervene and provide access to competitive pricing. However, it is vital to know the limitations that come with STP brokers. You should understand the risk of slippages and variable spreads. By conducting thorough research and aligning your trading style with your objectives, you can find the best STP broker. Whether you are a beginner or an experienced trader, STP brokers offer you fast execution and transparent pricing that could boost your trading efficacy.