STP Accounts

What Are STP Accounts in Forex? Definition, Benefits, and How They Work

Definition:

STP accounts (Straight Through Processing) are a type of Forex trading account where orders are sent directly to the broker’s liquidity providers without dealing desk intervention.

Explanation:

An STP account is a hybrid execution model designed to offer faster, more transparent order processing. When a trader places a trade using an STP account, the broker routes the order directly to its liquidity pool—which may include banks, hedge funds, and institutional providers—without manually altering the trade (i.e., no dealing desk).

Key features of STP accounts:

No requotes: Prices are executed directly at market or best available bid/ask.
Variable spreads: Since the broker forwards real-time quotes, spreads are not fixed.
Broker earns via spread markup or small commission.
Execution is faster than market maker models, but slightly slower than ECN in some cases.
Often better suited for retail traders who want speed and reliability without complex order books.

Difference Between STP, ECN, and Market Maker:

Model	Execution Type	Pricing	Broker Role
STP	Straight-through	Variable	Routes to liquidity pool
ECN	Electronic Matching	Raw (tight)	Matches traders directly
Market Maker	Internalized	Fixed/Variable	Takes opposite side of trade

Example:

A trader opens a buy order on EUR/USD at 1.1000 through an STP broker. The order is automatically routed to a liquidity provider offering 1.1000, and the trade is executed without delay or broker interference.

Related Terms:

ECN, Market Maker, No Dealing Desk, Liquidity Provider, Forex Broker, Execution Speed

Category:

Broker Types / Trading Infrastructure

FastPip Tip:

If you value speed, transparency, and reduced conflict of interest, STP accounts offer a strong balance—especially for swing traders and moderate scalpers.