STP Forex Brokers

STP Forex Brokers

  • STP Forex Brokers don’t trade against clients
  • Make money through spreads mark-ups. They add small mark-ups on the best bid and ask rates they get from LPs(liquidity providers). For example, adding a pip to the best bid price or subtracting a 0.6pip to the best ask price of their LPs
  • No dealing desk & No dealer intervention. Clients’ orders are directly sent to a certain number of liquidity providers (Banks or Other Brokers)
  • More liquidity providers means more liquidity and better fills for the clients.
  • Provide access to the real-time market quotes
  • Those STP Brokers that have fixed spreads won’t adjust spreads based on the lowest bid/ask prices offered by LPs. The fixed spreads they charge are higher than the best quotes they get from LPs. They may use their back-office price matching system to make sure they can make profits on spread difference while hedging the trades with LP(s) at better rates at the same time.

Read more: Forex Broker Types: ECN vs DMA vs STP vs Market Maker


Company: InstaTrade LLC; InstaTrade Investment Company Ltd.

January 13, 2015:  French AMF published a updated list of forex brokers that offer forex trading service in France without authorisation of AMF.  InstaForex is on the list.  
June 9, 2014:  The Ontario Securities Commission warned against InstaForex, because  instaforex “is not registered to engage in the business of (i) trading in securities or (ii)