List of the Best STP Forex Brokers

In trading, traders rely on brokers to execute their trades in the market. Among different types of forex brokers, Straight Through Processing (STP) brokers are highly preferred due to their no-dealing desk (NDD) execution model. These brokers send orders directly to liquidity providers without intervention, ensuring transparency and fair pricing.

Additionally, this execution model can lead to faster execution speeds and potentially tighter spreads. This review will highlight some of the best STP forex brokers available to traders today.

The Appeal of STP Forex Brokers

Before we list some of the best STP brokers, it's important to understand how they operate. Traditional market maker brokers operate by acting as the counterparty to every trade placed by their traders. Unlike market makers, STP brokers forward trades directly to liquidity providers such as banks, hedge funds, or other large financial institutions. 

When a trader places a buy or sell order, the broker's system automatically sends this order to its pool of liquidity providers. The liquidity provider that offers the best available price at that moment executes the trade. One of the main advantages of STP brokers is that they eliminate conflicts of interest. Since these brokers do not trade against their clients, they have no incentive to manipulate prices or delay executions. 

Another key feature of STP brokers is the speed and efficiency of trade execution. Because the orders are processed automatically and routed directly to the market, latency is reduced, which is particularly beneficial for scalpers and high-frequency traders. Important to note, all ECN brokers are STP in nature.

How To Select The Best STP Forex Brokers

Selecting the right STP broker is crucial for a positive trading experience. Here are several key factors to consider:

• Regulation and Reputation - This is paramount. Ensure the broker is regulated by a reputable financial authority like the FCA, the ASIC, or the CySEC, among others. 
• Spreads and Commissions - It is very important to understand a broker's fee structure. Compare the spreads offered on your preferred trading instruments, as well as any commission charges per trade. Also, consider other potential fees such as swap fees, inactivity fees, and deposit/withdrawal fees.
• Trading Platforms - Evaluate the trading platforms offered by the broker. Ensure the platform is user-friendly, stable, and equipped with the necessary trading tools.
• Range of Markets and Instruments - Consider the range of financial instruments offered by the broker. If you plan to trade multiple asset classes, ensure the broker provides access to these markets.

With these factors in mind, let’s take a look at a list of some of the best STP forex brokers available to traders today.

Pepperstone

FP Markets is one of the top STP brokers in the world. The company does not operate its own proprietary trading desk. Instead, the broker sources its pricing from external liquidity providers. The broker sources liquidity from top-tier banks and financial institutions. This ensures access to deep liquidity pools, resulting in tight spreads and fast trade execution speeds.

Pepperstone offers two main account types: the Standard and the Razor accounts. On the Standard account, traders have access to spreads that start from 1.0 pips with no commission applied. In contrast, the Razor account has a spread from 0.0 pips but includes a commission which depends on the trading platform a trader uses.

Traders using MetaTrader 4 and MetaTrader 5 pay a commission of $3.50, €2.60, £2.25, or CHF 3.30 per side per lot, based on their account currency. Similarly, a commission of $3.50 per side per lot applies to users of TradingView and the Pepperstone Trading Platform. cTrader offers a slightly lower commission of $3.00 per side per lot. For non-USD accounts on TradingView, cTrader, and the Pepperstone Trading Platform, commissions are converted to the account currency using the current spot exchange rate.

Lastly, Pepperstone is a highly regulated broker, holding licenses from several reputable financial authorities. It operates under the supervision of the FCA in the UK, ASIC in Australia, CySEC in Cyprus, BaFin in Germany, and the CMA in Kenya, among others. This strong regulatory framework and global presence make Pepperstone one of the best choices for STP trading.

75.9% of retail CFD accounts lose money

FP Markets

FP Markets is another well-regarded STP broker, as it uses an ECN model.This broker operates an ECN execution model, meaning it does not have a dealing desk. This broker streams directly from its liquidity providers to traders using an Electronic Communication Network. Notably, FP Markets offers a large liquidity pool of leading, tier-one, regulated financial institutions for a diverse liquidity mix and competitive pricing. Additionally, its technology has low latency, leading to some of the fastest order execution times in the market.

In terms of the spreads, FP Markets has two accounts from which traders can choose. These include the Standard account and the Raw account. The Standard account offers spreads from as low as 1.0 pips for major currency pairs with no commissions charged. On the other hand, the Raw account has a spread that starts from 0.0 pips for major currency pairs plus a commission of $3 per side lot. 

On another note, FP Markets offers its traders access to one of the deepest collections of market products. These include over 10,000 instruments, which include CFDs on forex, indices, metals, commodities, stocks, bonds, and ETFs. To trade these market products, traders can use a variety of trading platforms, including MetaTrader 4, MetaTrader 5, cTrader, and TradingView.

Finally, FP Markets is a well-regulated broker across various jurisdictions. This broker operates under the supervision of the ASIC in Australia, the CySEC in Cyprus, the FSCA in South Africa, and the CMA in Kenya, among others. 

72.44% of retail CFD accounts lose money

Octa

Octa is a popular forex and CFD broker that operates using an ECN model. As such, it is an STP broker that routes client orders directly to its liquidity providers without any dealing desk intervention. This setup provides traders with fair pricing and transparent trade execution. The broker sources liquidity from a wide range of liquidity providers around the world. 

Its system is designed to offer traders the best aggregated prices from the liquidity providers. When a client opens a new order, they get the best bid or ask prices available with the broker’s charges already included in the spread. One of the standout features of Octa is its commitment to fair pricing. This broker offers some of the lowest spreads in the market today. 

The broker offers two account types, both featuring spreads starting from 0.6 pips for major currency pairs with no additional commission charged. Traders have access to a deep collection of market products, which include CFDs on forex, cryptocurrencies, commodities, indices, and stocks. To trade these products, the broker offers MetaTrader 5 and its proprietary OctaTrader platform.

In terms of regulations, this broker has supervision from several organisations. These include the CySEC, the FSCA, and the MISA in Mwali.

Remember that forex and CFDs available at Octa are leveraged products and can result in the loss of your entire capital.

Tickmill

Tickmill is a well-established STP broker known for its competitive trading conditions and fast execution speeds. The broker uses a hybrid execution model that involves both market making and straight-through processing. This model guarantees an average execution time of 0.20 seconds for trades with no requotes, and some of the best spreads in the market. 

Notably, some branches of Tickmill utilise the full STP model with no market making. For example, on Tickmill Asia Ltd, all clients’ trades are sent directly to be filled by liquidity providers, with no interference from Tickmill. There’s no dealing desk involved, and Tickmill does not trade against the clients.

Tickmill offers access to a variety of market products. It offers CFDs on forex, stock indices, gold and other metals, bonds, commodities, and cryptocurrencies. The trading platforms available for use include MetaTrader 5, MetaTrader 4, and Tickmill Trader.

Tickmill provides different pricing structures based on the account a trader chooses. The Classic account offers spreads from 1.6 pips on major pairs with no commission. For those seeking lower spreads, Tickmill also provides two raw spread account options, both with spreads from 0.0 pips. The Raw account has a commission of $3 per side per lot, while the Tickmill Trader Raw account features a commission of $3.5 per side per lot.

From a regulatory standpoint, this broker adheres to the strict regulatory standards of several financial authorities. These include the FCA, the CySEC, the DFSA in Dubai, and the FSCA, among others. With such regulations and trading conditions, Tickmill stands out as a top-tier choice for traders looking for a solid STP brokerage.

71-74% of retail investor accounts lose money when trading CFDs with this provider.

IC Markets

IC Markets is a globally recognised forex and CFD broker utilizing a true ECN execution model, classifying it as an STP broker. The broker connects traders directly with its deep liquidity pool consisting of major banks and financial institutions. This ensures consistently tight spreads and lightning-fast execution speeds averaging under 40 milliseconds. 

From a regulatory perspective, IC Markets has oversight from various organisations. These include the ASIC, the CySEC, the FSCA, and the SCB in the Bahamas. It offers investors a deep collection of market products, totalling over 2,100 instruments. These include CFDs on forex, cryptocurrencies, stocks, indices, commodities, and futures. The trading platforms available on this broker site include MT4, MT5, WebTrader, and cTrader.

Regarding spreads, this broker offers three main account types. The Standard Account has spreads starting at 0.8 pips for major currency pairs and no commission. On the other hand, the Raw Spread Account delivers tighter spreads from 0.0 pips plus a commission depending on the trading platform used. For cTrader and TradingView users, the commission is $3 per $100,000, while MetaTrader users pay $3.50 per side per lot.

FXTM

FXTM is a globally popular broker that provides traders access to a wide array of financial markets. On this broker site, traders can access CFDs on forex, stocks, commodities, indices, cryptocurrencies, and shares. The trading platforms available to use include MetaTrader 4, MetaTrader 5, and the broker’s own FXTM Trader.

Notably, FXTM uses an ECN execution model, making it an STP broker. Its system routes client orders directly to its network of liquidity providers without intervention from a dealing desk. FXTM sources liquidity from multiple tier-1 banks and financial institutions. As a result, FXTM offers transparent pricing and fast trade execution, making it a popular choice for STP trading among investors.

FXTM offers several account types to cater to different trading styles. The Advantage Stocks account only offers stock trading and features spreads starting from as low as 6 cents in the base currency. For traders seeking broader market access, the Advantage Plus Account provides all available trading instruments with spreads beginning at 1.5 pips on major forex pairs with no commission charged. Meanwhile, the Advantage account also covers all instruments but delivers tighter spreads from 0.0 pips, with a commission of $3.50 per side per lot on forex trades.

From a regulatory standpoint, FXTM maintains strong oversight from multiple jurisdictions. It operates under supervision from the FCA, the CySEC, the CMA, and the FSC in Mauritius.

Key Advantages of STP Brokers

• No Conflict of Interest - Since STP brokers do not trade against clients, there is no incentive to manipulate prices.
• Faster Execution - STP brokers process orders instantly through their liquidity providers, reducing latency and slippage.
• Variable Spreads - Since STP brokers connect traders to multiple liquidity providers, traders benefit from the best available prices from competing providers. 
• Transparency - STP brokers typically provide more transparent pricing as they source quotes from the underlying interbank market. 

Potential Drawbacks of STP Brokers

• Commissions or Markup - STP brokers typically charge a commission per trade or apply a slight markup to the spreads they receive from liquidity providers. 
• Variable Spreads - While sometimes an advantage, variable spreads can widen significantly during periods of high market volatility or low liquidity.

Closing Remarks

STP forex brokers offer numerous benefits, including faster execution speeds, transparent pricing, and a no-dealing desk model that minimises conflicts of interest. The brokers listed above are among the best STP brokers in the industry, each offering unique advantages depending on your trading style. 

However, selecting the right broker depends on individual trading preferences. Moreover, this is not an exhaustive list. There are several other STP brokers in existence that we did not list here. Ensure to conduct thorough research before choosing an STP broker. Remember to prioritize regulation, transparency, and execution speed, among other factors.