This STP Brokers review focuses on Straight Through Processing (STP) forex brokers, a category of brokers that route client orders directly to liquidity providers without internal dealing desk intervention. STP brokers are known for transparent execution, variable spreads, and reduced conflict of interest compared to market makers.

Regulation and Safety

STP brokers can be regulated in multiple jurisdictions, depending on the brand. Key examples include:

• FCA (UK) – e.g., Pepperstone UK (FRN: 684312)
• ASIC (Australia) – e.g., IC Markets (AFSL No. 335692)
• CySEC (Cyprus) – e.g., FXTM (License No. 185/12)
• FSA (Seychelles), FSC (Mauritius), and offshore IFSC (Belize) for global reach

Reliable STP brokers segregate client funds, offer negative balance protection, and comply with investor compensation schemes where applicable. Always verify the regulatory status of each STP broker individually.

Execution Model and Trading Platforms

STP brokers offer direct order routing without dealer desk interference. They aggregate prices from liquidity providers, offering best-bid/best-ask quotes. Platform availability includes:

• MetaTrader 4 (MT4) and MetaTrader 5 (MT5)
• cTrader (e.g., Pepperstone, IC Markets)
• Proprietary platforms with STP integration (e.g., FXOpen TickTrader)

Execution speeds are typically sub-100ms, suitable for scalpers and algorithmic traders. VPS hosting and FIX API access are often available.

Markets and Instruments

Most STP brokers offer multi-asset CFD coverage:

• Forex – 50–80 major, minor, and exotic pairs
• Indices – S&P 500, NASDAQ, FTSE 100, DAX, Nikkei
• Commodities – Gold, oil, silver, natural gas
• Stocks – US, EU, and Asia-listed shares (CFDs)
• ETFs and Bonds – Available on select platforms
• Cryptocurrencies – BTC, ETH, XRP, LTC (availability varies)

Accounts, Spreads and Leverage

STP brokers typically offer two core account types:

• Standard STP: Spreads from 1.0 pips, no commission
• Raw/STP ECN: Spreads from 0.0 pips, commission $3–$7 per lot

Key trading conditions include:

• Leverage up to 1:30 (EU/UK) or 1:500+ (offshore)
• Minimum deposits: $100–$500 depending on broker
• Stop-out level: 20–50%
• Islamic accounts often supported

Funding and Base Currencies

STP brokers generally support diverse payment methods:

• Credit/debit cards
• Bank transfers
• eWallets – Skrill, Neteller, PayPal
• Cryptocurrencies – BTC, USDT, ETH (select brokers)

Base currencies typically include USD, EUR, GBP, AUD. Most brokers process deposits instantly and withdrawals within 1–3 business days.

Client Protections and Features

Reputable STP brokers provide:

• Segregated funds with Tier-1 banks
• Negative balance protection
• SSL encryption and 2FA login
• Compliance with FSCS/ICF/AFCA (jurisdiction dependent)
• Third-party audits and dispute resolution mechanisms

Institutional and Retail Offering

STP brokers may serve both retail and institutional clients:

• Retail – MT4/MT5 accounts, copy trading, social trading
• Institutional – FIX API, white-label solutions, deep liquidity
• Advanced tools – VPS, trade copier, PAMM/MAM

Brokers like FXOpen, IC Markets, and Pepperstone offer institutional-grade spreads and backend infrastructure to hedge funds, prop firms, and family offices.

Pros

• Transparent execution with no dealing desk
• Tight spreads via aggregated liquidity
• MT4, MT5, and cTrader supported
• Suitable for scalping and high-frequency trading
• Wide range of instruments including crypto and stocks

Cons

• No guaranteed stop-loss execution
• Spreads may widen during low liquidity
• STP model varies by broker and jurisdiction
• Fewer beginner tools compared to market makers

Frequently Asked Questions

What is an STP broker?

An STP broker routes client orders directly to external liquidity providers without dealing desk interference, offering transparent pricing and variable spreads.

Are STP brokers regulated?

Many STP brokers are regulated by top-tier authorities like the FCA, ASIC, or CySEC, but others may operate offshore. Regulation varies by broker.

Is ECN the same as STP?

No. ECN involves direct market access to a network of participants, while STP routes orders to liquidity providers. Some brokers offer hybrid STP/ECN models.

Can I use MT4 or MT5 with an STP broker?

Yes, most STP brokers support MetaTrader 4 and MetaTrader 5, along with cTrader or proprietary platforms.

Who are the best STP brokers?

Top-rated STP brokers include Pepperstone, IC Markets, FXOpen, ThinkMarkets, and Eightcap, based on execution speed, spreads, and regulation.