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Best STP Forex Brokers

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Written by BrokerNotes.co

April 24, 2023

What is Straight Through Processing (STP) and Why is it Significant?

Newcomers to compare forex brokers and CFDs trading may well have come across the terms Market Maker and Straight Through Processing (STP) in relation to how brokers provide price quotes on the tradable markets they offer. What does STP mean and what its significance to traders when it comes to either choosing a broker or the type of account, with brokers that offer different price quote options to their clients.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best Straight Through Processing (STP) Forex Brokers

Here are the best straight through processing (STP) forex brokers.

  • IG
    - 9.9/10 Overall
  • Saxo Bank - 9.7/10 Overall
  • Interactive Brokers - 9.7/10 Overall
  • TD Ameritrade - 9.5/10 Overall
  • XTB - 9/10 Overall
  • eToro - 8.8/10 Overall
  • Swissquote - 8.7/10 Overall
  • FXCM
    - 8.5/10 Overall
  • Pepperstone - 8.4/10 Overall

Overall Rating

9.9 / 10

Minimum Deposit

£250.00

Trust Score info

Highly Trusted
99
Cost & Funding
Average Spread EUR/USD - Standard0.86
All-in Cost EUR/USD - Active0.5957
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulation
Year Founded1974
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses7
Tier-2 Licenses2
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)19537
Forex Pairs (Total)100
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)33
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Overall Rating

9.7 / 10

Minimum Deposit

€2,000

Trust Score info

Highly Trusted
99
Cost & Funding
Average Spread EUR/USD - Standard0.9
All-in Cost EUR/USD - Active0.7
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulation
Year Founded1992
Publicly Traded (Listed)No
BankYes
Tier-1 Licenses6
Tier-2 Licenses1
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)60000
Forex Pairs (Total)190
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)62
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Overall Rating

9.7 / 10

Minimum Deposit

$0

Trust Score info

Highly Trusted
99
Cost & Funding
Average Spread EUR/USD - Standard0.6
All-in Cost EUR/USD - Active0.6
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulation
Year Founded1977
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses8
Tier-2 Licenses1
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)8500
Forex Pairs (Total)90
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)128
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Overall Rating

9.5 / 10

Minimum Deposit

$0

Trust Score info

Highly Trusted
99
Cost & Funding
Average Spread EUR/USD - Standard1.25
All-in Cost EUR/USD - Active1.25
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulation
Year Founded1955
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses4
Tier-2 Licenses0
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)0
Forex Pairs (Total)73
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)360
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Overall Rating

9 / 10

Minimum Deposit

$0

Trust Score info

Highly Trusted
95
Cost & Funding
Average Spread EUR/USD - Standard1.07
All-in Cost EUR/USD - Active1.04
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulation
Year Founded2002
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses1
Tier-2 Licenses3
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)12000
Forex Pairs (Total)57
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)39
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Overall Rating

8.8 / 10

Minimum Deposit

$10-$10,000

Trust Score info

Highly Trusted
93
Cost & Funding
Average Spread EUR/USD - Standard1
All-in Cost EUR/USD - ActiveN/A
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulation
Year Founded2007
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses1
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)3458
Forex Pairs (Total)49
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)66
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)No
Economic CalendarYes

Overall Rating

8.7 / 10

Minimum Deposit

$1000

Trust Score info

Highly Trusted
99
Cost & Funding
Average Spread EUR/USD - StandardN/A
All-in Cost EUR/USD - ActiveN/A
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulation
Year Founded1996
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses4
Tier-2 Licenses1
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)466
Forex Pairs (Total)78
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)49
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Overall Rating

8.5 / 10

Minimum Deposit

Starts from $50

Trust Score info

Highly Trusted
96
Cost & Funding
Average Spread EUR/USD - Standard1.38
All-in Cost EUR/USD - Active1.38
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulation
Year Founded1999
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses3
Tier-2 Licenses3
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)440
Forex Pairs (Total)41
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)59
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Overall Rating

8.4 / 10

Minimum Deposit

$200

Trust Score info

Highly Trusted
93
Cost & Funding
Average Spread EUR/USD - Standard0.77
All-in Cost EUR/USD - Active0.87
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulation
Year Founded2010
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses2
Investment Options
Forex Trading (Spot or CFDs)Yes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)2342
Forex Pairs (Total)62
BitcoinYes
Trading Platforms
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformNo
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)15
Apps & Tools
Android App
Apple iOS AppYes
Education (Forex or CFDs)Yes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes

Understanding the significance of STP is best achieved within the context of how it differs from a Market Maker price quoting system. As such, it makes sense to explain both and their advantages and disadvantages.

Price Quotes in CFDs Trading

When a trader takes a CFD position they, in theory, buy a financial instrument at a close approximation to its present market price. There is a buy and a sell price, referred to as the bid and ask price and the small difference between the two is the "spread". This is where the entity on the other side of a trade makes their money.

However, the reality is that the situation is not quite as simple as that. There are actually two main ways in which different brokers arrive at the price offered on CFD markets that can be traded on their platforms & Market Maker and STP. Each has pluses and minuses for traders.

Market Makers

Some CFD brokers have a Market Maker quoting model, which can also be referred to as a Dealing Desk (DD). In this model, it is the broker themselves that offer traders the bid and ask prices on a given CFD. The pricing provided should closely reflect the actual market price though can, in theory, slightly diverge. By how much a MM broker's pricing can differ from the underlying market is determined by their financial regulator.

Generally, MM brokers will try to offset the trading position of one client against that of the other, under the presumption that there will be long and short trades held simultaneously by different traders using the broker. If this is not possible the next recourse is to hedge the risk with an external liquidity provider. However, the most important quality of taking a trading position with a MM broker is that the broker takes the other side of the trade. This means that if the trade goes in favour of the trader, the MM broker loses it, though in theory they will have hedged this loss.

Many traders consider trading with MM brokers to be an inherent conflict of interest and generally undesirable. This is a bit of a misconception and most MM brokers, particularly those under the regulatory regime of a strong regulator such as the UK's Financial Conduct Authority (FCA), offer a fair market price. There are also a number of advantages for traders which result from the greater control that MM brokers have. These include:

However, there are also disadvantages such as:

  • The potential for a conflict of interest.
  • Spreads are generally wider in comparison to STP broker quotes.
  • Slippage and requotes are more common.
  • Bigger positions may be declined if the broker doesn't have the liquidity to take on the risk.

Straight Through Processing (STP)

In its wider application in financial services, STP means information electronically processed by one party to begin a settlement process does not need to be re-entered by subsequent recipients of that information along the sequence of events.

Within the specific context of online trading, STP price quoting means that the broker, unlike in the case of a MM broker, does not take the opposite side of their clients' trades. The broker facilitates the matching of the trade position with a counter-party in market, which is made up by liquidity providers and other financial institutions. The bid and ask prices quoted to traders are those of the main market.

In an STP brokerage model it makes no difference to the broker whether a trader wins or loses a trading position. The broker makes its money purely from commission charged on each trade, which reassures many traders of transparency and a lack of any potential conflict of interest. The main advantages to the trader of trading with an STP broker are:

  • No potential for a conflict of interest with the broker.
  • Tighter spreads.
  • Requotes and slippage rare.
  • Larger trade positions can be taken.

Disadvantages include:

  • Micro-lots are not available so significantly larger trading capital is required for effective risk management.
  • Spreads are less consistent and may widen considerably during particularly volatile periods on a financial market.
  • The broker charges commission so each trade placed is more expensive.

Should I choose a Market Maker or Straight Through Processing Broker?

As is probably clear by now there is no black and white answer to this question. However, as a general rule of thumb, the lower costs and the option to trade micro-lots means that MM brokers are the better option for beginner traders who will work with less capital and take smaller positions. The advantages of STP brokers outweigh the higher cost of using them when more valuable trade positions are taken. As such they tend to be the preferred option for more experienced traders working with bigger trading accounts.

Many of the bigger brokers now offer both MM and STP trading accounts in recognition of this divergence in the benefits and drawbacks to the two models.

Which Regulated Brokers Offer STP

XMbroker that is regulated by a reputable regulator as they will be supervised and monitored to ensure that they are acting in accordance with the highest standards when it comes to their client services.

BrokerNotes.co 2023 Overall Rankings

To recap, here are our top forex brokers for 2023, sorted by Overall ranking.

Company Overall Rating Minimum Deposit Average Spread EUR/USD - Standard Trust Score Tradeable Symbols (Total) Read Review Visit Site
IG logoIG 9.9 £250.00 0.86 99 19537 IG Review Visit Site
Saxo Bank logoSaxo Bank 9.7 €2,000 0.9 99 60000 Saxo Bank Review
Interactive Brokers logoInteractive Brokers 9.7 $0 0.6 99 8500 Interactive Brokers Review
CMC Markets logoCMC Markets 9.6 $0 0.51 99 12377 CMC Markets Review
TD Ameritrade logoTD Ameritrade 9.5 $0 1.25 99 0 TD Ameritrade Review
FOREX.com logoFOREX.com 9.3 $100 1.0 99 5500 FOREX.com Review Visit Site
City Index logoCity Index 9.2 £100.00 1.0 99 13500 City Index Review
XTB logoXTB 9 $0 1.07 95 12000 XTB Group Review
eToro logoeToro 8.8 $10-$10,000 1 93 3458 eToro Review
Swissquote logoSwissquote 8.7 $1000 N/A 99 466 Swissquote Review
AvaTrade logoAvaTrade 8.6 $100 0.92 93 1260 AvaTrade Review
FXCM logoFXCM 8.5 Starts from $50 1.38 96 440 FXCM Review Visit Site
Plus500 logoPlus500 8.5 €100 0.8 98 2800 Plus500 Review
Capital.com logoCapital.com 8.4 $20 0.65 85 3152 Capital.com Review
XM Group logoXM Group 8.4 $5 1.6 90 1429 XM Group Review
Pepperstone logoPepperstone 8.4 $200 0.77 93 2342 Pepperstone Review
OANDA logoOANDA 8.4 $0 1.26 92 124 OANDA Review
Admiral Markets logoAdmiral Markets 8.3 $100 0.8 88 6942 Admiral Markets Review
FP Markets logoFP Markets 8.3 $100 AUD 1.2 86 10000 FP Markets Review
IC Markets logoIC Markets 8.2 $200 0.62 86 3583 IC Markets Review
Markets.com logoMarkets.com 8.2 $100 1.9 98 2179 Markets.com Review
FxPro logoFxPro 8.1 $100 1.51 90 2249 FxPro Review
Tickmill logoTickmill 8.0 $100 0.51 82 725 Tickmill Review
Fineco Bank logoFineco Bank 8.0 $0 N/A 92 126 Fineco Bank Review
BlackBull Markets logoBlackBull Markets 7.9 $0 0.827 74 26000 BlackBull Markets Review
DooPrime logoDooPrime 7.8 $100 N/A 84 10000 DooPrime Review
Vantage logoVantage 7.8 $50 1.30 89 1000 Vantage Review
BDSwiss logoBDSwiss 7.8 $100-$5000 1.6 83 1081 BDSwiss Review
TMGM logoTMGM 7.8 $100 0.96 79 12000 TMGM Review
HFM logoHFM 7.8 $0 1.2 85 3500 HFM Review
FlowBank logoFlowBank 7.7 $0.00 N/A 77 408600 FlowBank Review
HYCM (Henyep) logoHYCM (Henyep) 7.7 $100 0.6 86 362 HYCM Review
Trading 212 logoTrading 212 7.6 EUR 10 N/A 77 1785 Trading 212 Review
Eightcap logoEightcap 7.6 $100 1.0 87 736 Eightcap Review
Trade Nation logoTrade Nation 7.5 $0 0.6 83 601 Trade Nation Review
Moneta Markets logoMoneta Markets 7.5 $50 1.27 71 965 Moneta Markets Review
ThinkMarkets logoThinkMarkets 7.4 $250.00 N/A 86 1674 ThinkMarkets Review
VT Markets logoVT Markets 7.4 $200 1.2 71 168 VT Markets Review
ACY Securities logoACY Securities 7.4 $50 1.2 75 1600 ACY Securities Review
easyMarkets logoeasyMarkets 7.3 $100 0.9 84 199 a href="/reviews/easymarkets">easyMarkets Review
RoboForex (RoboMarkets) logoRoboForex (RoboMarkets) 7.3 $100 1.4 69 12000 Roboforex (RoboMarkets) Review
IronFX logoIronFX 7.2 $50 1.2 84 340 IronFX Review
Exness logoExness 7.2 $1 0.9 74 112 Exness Review
Spreadex logoSpreadex 7.2 $0 N/A 70 2000 Spreadex Review
Trade360 logoTrade360 7.1 $250 N/A 75 1062 Trade360 Review
Axi logoAxi 7.1 0 N/A 83 175 Axitrader Review
GKFX logoGKFX 7.1 $0 N/A 66 354 GKFX Review
Vestle logoVestle 7.1 -1 N/A 79 750 Vestle Review
OctaFX logoOctaFX 7 $25 0.9 69 229 OctaFX Review
FXOpen logoFXOpen 7 $100 N/A 80 87 FXOpen Review
TeleTrade logoTeleTrade 7 $100 N/A 67 500 Teletrade Review
FXPrimus logoFXPrimus 6.9 $100 N/A 69 140 FXPrimus Review Visit Site
Forex4you logoForex4you 6.9 $0 N/A 62 150 Forex4you Review
LegacyFX logoLegacyFX 6.9 $500 N/A 66 425 LegacyFX Review
GBE brokers logoGBE brokers 6.8 $500 N/A 69 500 GBE Brokers Review
Alpari logoAlpari 6.8 $20 N/A 67 105 Alpari Review
TopFX logoTopFX 6.7 Depends on payment method N/A 67 655 TopFX Review
Libertex (Forex Club) logoLibertex (Forex Club) 6.7 $10 N/A 72 300 Libertex Review
ATFX logoATFX 6.6 $500 N/A 70 150 ATFX Review
UFX logoUFX 6.6 $100 3 67 619 UFX Review
Xtrade logoXtrade 6.5 $250 N/A 80 142 Xtrade Review
Tradeo logoTradeo 6.4 $200 N/A 67 256 Tradeo Review
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