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: December 5, 2024

‹
• Jump to:
• Main Features
• Compared By Leverage and Commission per Lot
• STP Forex Brokers by Spread
• 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: 4.9

   74-89% of retail CFD accounts lose money

2. 

   FP Markets

   Rating: 4.7

   73.85% of retail investor accounts lose money

3. 

   Pepperstone

   Rating: 4.6

   75.5% of retail investor accounts lose money

4. 

   IC Markets

   Rating: 4.5

   70.64% of retail investor accounts lose money

5. 

   Eightcap

   Rating: 4.2

   76.09% of retail investor accounts lose money

6. 

   XTB

   Rating: 3.8

   80% of retail investor accounts lose money

7. 

   IG

   Rating: 3.8

   70% of retail client accounts lose money

8. 

   Vantage FX

   Rating: 3.5

9. 

   Interactive Brokers

   Rating: 3.0

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.

Main Features of the Best STP Forex Brokers

1. TRADE NOW READ REVIEW
   FP Markets

   Min Deposit

   $50 (AU$100)

   Trading Instruments

   Forex CFDs, Shares CFDs, Metals CFDs, Commodities CFDs, Indices CFDs, Crypto CFDs, ETF CFDs

   Regulators

   ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines)

   Trading Platforms

   MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView

   Spread

   1.0 pips Standard; 0.0 pips Raw

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker, PayPal, XPay, Rapyd

   Withdrawal Methods

   Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal

   73.85% of retail investor accounts lose money

   FP Markets is an STP/ECN broker that offers fast and reliable execution. FP Markets does not operate a dealing desk, and trades are processed automatically. The broker’s servers are located in the Equinix data center in New York. VPS (Virtual Private Server) hosting suitable for clients using MT4, MT5, and cTrader is also available. The CFD market selection includes dozens of forex pairs (EUR/USD, AUD/JPY, USD/CAD, etc.) as well as contracts for difference on shares, metals, commodities, indices, cryptocurrencies, and ETFs. Spreads from 1 pip (Standard) or 0 pips (Raw). Eligible clients can open swap-free accounts. The retail leverage in Europe and Australia is capped at 1:30.

2. TRADE NOW READ REVIEW
   Fusion Markets

   Min Deposit

   $0

   Trading Instruments

   CFDs, Commodities, Indices, Crypto, US Stocks

   Regulators

   ASIC, FSA (Seychelles), VFSC (Vanuatu)

   Trading Platforms

   MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView

   Spread

   from 0.9 pips Classic; from 0.0 pips Zero

   Leverage

   1:30 (1:500 for forex and metals via VFSC)

   Deposit Methods

   Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity

   Withdrawal Methods

   Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay

   74-89% of retail CFD accounts lose money

   Fusion Markets boasts STP/ECN execution with speeds of 37ms on average, as estimated by CompareForexBrokers in August 2023. For a monthly fee, Fusion Markets clients can also take advantage of NYC-based VPS hosting. Forex, metals, cryptocurrencies, and other top markets can be traded at Fusion Markets, and the supported platforms are MT4/5, TradingView, and cTrader. Experienced traders may also open MAM accounts. Traders are free to utilize various deposit solutions, including but not limited to Interac, wire transfers, PayPal, PayID, and bank cards. Standard users can enjoy spreads from 0.9 pips with no extra commissions. Zero account holders’ spreads can go as low as 0 pips, but a commission of $4.5 (round turn) is charged. Leverage of up to 1:500 (VFSC) or 1:30 (ASIC).

3. TRADE NOW READ REVIEW
   Pepperstone

   Min Deposit

   $0

   Trading Instruments

   Forex, Indices, Commodities, Cryptocurrencies, Share CFDs, ETFs

   Regulators

   UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA, SCB (Bahamas)

   Trading Platforms

   TradingView, MetaTrader4, MetaTrader5

   Spread

   From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill

   Withdrawal Methods

   Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill

   75.5% of retail investor accounts lose money

   Pepperstone is an STP/ECN broker without a dealing desk, and third-party liquidity providers are the entities that Pepperstone bases its pricing on. Orders are executed swiftly with speeds of roughly 30ms (Australia). CFD accounts: Standard, Razor. The former offers spreads from 1 pip, while the latter boasts spreads as low as 0 pips. No matter the account type, clients can choose from a dozen base currencies like USD, EUR, NZD, HKD, and more. Over 1,200 instruments (forex, shares, commodities, cryptocurrencies, etc.) are included in Pepperstone’s market selection. Stop-out levels are set at 50% and 20% for retail traders and professionals, respectively.

4. TRADE NOW READ REVIEW
   XTB

   Min Deposit

   $0

   Trading Instruments

   Forex, Stocks, Indices, Commodities, ETFs, Indices, Cryptocurrencies

   Regulators

   FCA (License No. FRN 522157), CySEC (License No.169/12), FSC (FSC License No.: 000302/438), IFSC (License No.: 000302/46.), KNF (N/A), CNMV (N/A), BaFin (registered), FSCA (N/A), FSA Norway (registration ID - FT00118162)

   Trading Platforms

   xStation 5, xStation Mobile

   Spread

   From 0.1 pips (Pro Account), 0.5 pips (Standard Account)

   Leverage

   1:30; 1:20

   Deposit Methods

   Visa, Maestro, Mastercard, Bank Transfer, Neteller, Skrill, PayPal, Ecommpay, PayU

   Withdrawal Methods

   Bank Transfers, Visa, Mastercard, Skrill

   80% of retail investor accounts lose money

   At XTB, client orders are achieved predominantly via straight-through processing, and the broker specifies that both Market and Instant execution are offered. The latter is reserved for clients with old XTB account types. In terms of markets, CFDs on 70+ forex pairs, indices, and commodities make up much of the market roster. Trading stocks and ETFs is also an option. xStation 5 is XTB’s proprietary platform, and MT4 is available but only for MENA clients. Spreads can fall below 1 pip: for Standard accounts, the minimum is 0.5 pips, while for Pro accounts, it is 0.1 pips. Retail leverage cannot be set beyond 1:30 in the EU, UK, and MENA regions. Elsewhere, the leverage cap is 1:500.

5. TRADE NOW READ REVIEW
   Vantage FX

   Min Deposit

   $50

   Trading Instruments

   Forex, Indices, Commodities, Shares CFD, ETFs, Bonds

   Regulators

   FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491)

   Trading Platforms

   MetaTrader4, MetaTrader5, ProTrader, TradingView, Copy Trading

   Spread

   1.1 pips on Standard Account; 0.0 pips on Raw, Cent, and Pro Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Union Pay, Boleto, Bank Wire, Skrill, Neteller, Crypto, POLi, FasaPay, Perfect Money, BPay, Pagsmile, AstroPay, JCB

   Withdrawal Methods

   Visa, Mastercard, Union Pay, Bank Wire, Skrill, Neteller, Crypto, AstroPay, Perfect Money, JCB

   One of the live accounts Vantage clients can go with is dubbed Standard STP. Starting out requires a $50 deposit, and the spreads can be 1.1 pips or higher. Execution speeds are excellent, courtesy of the broker’s Equinix fiber optics network, and prices are sourced from various liquidity providers. Both MetaTrader platforms are supported. Moreover, Standard STP account holders can trade forex (EUR/USD, USD/JPY, GBP/USD, etc.), indices, gold, and silver without being charged extra commissions on top of the spread. Vantage’s ECN accounts, Raw and Pro, come with lower spreads of at least 0 pips. Commissions are attached, however ($1.50 for Pro accounts and $3 for Raw accounts). The fourth account option allows users to partake in swap-free trading.

6. TRADE NOW READ REVIEW
   Eightcap

   Min Deposit

   $100

   Trading Instruments

   Forex CFDs, Commodity CFDs, Shares CFD's, Index CFDs, Crypto CFD's

   Regulators

   SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296)

   Trading Platforms

   MetaTrader4, MetaTrader5, WebTrader, TradingView, Capitalise.ai, FlashTrader

   Spread

   0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay

   Withdrawal Methods

   Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay

   76.09% of retail investor accounts lose money

   A popular broker with stop-notch STP execution, Eightcap is a great option for those looking to trade CFDs on forex, commodities, indices, shares, and cryptocurrencies. Both the Standard and TradingView accounts have a $100 minimum deposit, and the spreads start from 1 pip. Trade sizes can be as low as 0.01 lots when it comes to some instruments. Moreover, neither of these account types comes with commissions since all costs are built into the spreads, which is not the case for Raw Eightcap accounts where spreads start at 0 pips, but a $3.5 commission applies (each side). Demo trading is an option for novices. Platforms: TradingView, MT4, MT5, WebTrader (MT4/5). 24/5 support via live chat. Users can also call the customer service staff or send them an email.

7. TRADE NOW READ REVIEW
   Interactive Brokers

   Min Deposit

   $0

   Trading Instruments

   Stocks, options, futures, ETFs, bonds, mutual funds, metals, indices, cryptocurrencies, spot currencies

   Regulators

   CFTC, CIRO, FCA, CBI, Central Bank of Hungary, ASIC, SFC (Hong Kong), SEBI, JSDA, MAS

   Trading Platforms

   IBKR Desktop, IBKR Trader Workstation, IBKR Mobile, IBKR GlobalTrader, IBKR ForecastTrader, IMPACT Mobile, Proprietary

   Spread

   From 0.1 pip

   Leverage

   1:20

   Deposit Methods

   Bank Wire, Check (USA only), ACH, SEPA Transfer

   Withdrawal Methods

   Bank Wire, ACH, EFT, check

   Interactive Brokers, known also as IBKR, offers STP trading to its clients. Its lack of a dealing desk and stellar regulation (licenses from the FCA, CFTC, ASIC, etc.) makes the broker appealing to traders looking to trade with STP/ECN execution. The software on offer includes proprietary platforms like IBKR Desktop and Mobile, as well as Trader Workstation. In addition to 100+ currency pairs, users can also trade stocks, ETFs, and more. We should also note that both spot and CFD trading is possible at IBKR. Tight spreads from 1/10 pip are another perk.

8. TRADE NOW READ REVIEW
   IG

   Min Deposit

   $0

   Trading Instruments

   CFDs on Indices, Shares, Crypto, Futures, Commodities, Options, Interest Rates, Sectors, Bonds, Knock-out trading

   Regulators

   ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda)

   Trading Platforms

   MetaTrader4, L2 Dealer, ProRealTime, IG proprietary software, TradingView, Proprietary

   Spread

   from 0.6 pips Forex trading; 0.165 pips av. spread DMA trading

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal, Apple Pay, BPAY

   Withdrawal Methods

   Visa, Visa Electron, Mastercard, Discover, Bank Transfer

   70% of retail client accounts lose money

   Given its non-market maker status, IC Markets boasts ECN/STP processing and swift execution (35ms on average) without the intervention of a dealing desk. MT4, MT5, and cTrader are what traders can use on their desktop and mobile devices. As the broker caters to traders worldwide, its supported languages include English, German, and Vietnamese, to name a few. Standard account holders can trade forex with spreads from 0.8 pips ($0 commission), while those who pick one of the Raw Spread account options will enjoy spreads from 0 pips ($3.5 commission per lot per side). Leverage limits differ. In some jurisdictions, the usable leverage has a 1:1000 cap, while in others, the limit is a much lower 1:30. Micro lot trading from 0.01 lots is an option.

9. TRADE NOW READ REVIEW
   IC Markets

   Min Deposit

   $200

   Trading Instruments

   CFDs on Forex, Commodities, Index, Bond, Cryptocurrencies, Stock, Futures

   Regulators

   FSA (Seychelles), CySEC, ASIC

   Trading Platforms

   MetaTrader4, MetaTrader5, cTrader, ZuluTrade

   Spread

   0.8 pips Standard, 0.0 pips Raw Accounts

   Leverage

   1:30

   Deposit Methods

   Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna, Nuvei

   Withdrawal Methods

   Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna

   70.64% of retail investor accounts lose money

   Given its non-market maker status, IC Markets boasts ECN/STP processing and swift execution (35ms on average) without the intervention of a dealing desk. MT4, MT5, and cTrader are what traders can use on their desktop and mobile devices. As the broker caters to traders worldwide, its supported languages include English, German, and Vietnamese, to name a few. Standard account holders can trade forex with spreads from 0.8 pips ($0 commission), while those who pick one of the Raw Spread account options will enjoy spreads from 0 pips ($3.5 commission per lot per side). Leverage limits differ. In some jurisdictions, the usable leverage has a 1:1000 cap, while in others, the limit is a much lower 1:30. Micro lot trading from 0.01 lots is an option.

STP Forex Brokers Compared By Leverage and Commission per Lot

STP Forex Brokers by Spread

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.