STP/ECN Brokers

Below you will find a list of some of the industry’s most reputed ECN (Electronic Communication Network) and STP (Straight Through Process) Brokers. Such Brokers are often preferred due to the common implication that No Dealing Desk (NDD) exist and all client orders are matched; as such these type of Brokers do not make gains from a client’s losses and instead it is in the Broker’s interest that the Client keeps making profits so as to increase his trading activity and in turn increase the commission/extra spread charged by such Brokers.

Top Forex Brokers

forex broker
  • MT4 Platform
  • Accept U.S. Clients
  • Islamic Friendly Accounts
  • Live Chat 24/5
Broker Type: ECN/STP/MM
Regulator: None
Max. Leverage: 1:500
Min. Deposit: $200
Paxforex Review
Fxglory forex broker
  • Regulated Broker
  • MT4 Platform
  • Accept US Clients
  • Islamic Account
Broker Type: ECN/MM, ECN
Regulator: Economic Department of Dubai
Max. Leverage: 1:3000
Min. Deposit: $1
FxGlory Review
  • Regulated Broker
  • MT4 Platform
  • Accept All EA's
  • Mobile Trading
Broker Type: NDD
Regulator: CRFIN
Max. Leverage: 1:500
Min. Deposit: $25
Hotforex Review
  • Regulated Broker
  • MT4 Platform
  • Accept All EA's
  • Mobile Trading
Broker Type: MM, ECN
Regulator: CySEC
Max. Leverage: 1:500
Min. Deposit: $500
FxPro Review
Hotforex
  • Regulated Broker
  • MT4 Platform
  • Accept US Clients
  • Islamic Account
Broker Type: ECN, STP
Regulator: FSC Mauritius
Max. Leverage: 1:500
Min. Deposit: $25
Hotforex Review

Forex BrokerBroker TypeMin. SpreadMin. Deposit ($)Min. PositionMax. LeverageRegulationMobile Trading
1LotSTPECN,STP0.30.3 pip1000.011:5001Regulated2Mobile Trading
1pipfixSTP1.00.1 pip1000.011:4002Unregulated2Mobile Trading
2pipfixSTP0.90.9 pip250.1
1:4002Unregulated2Mobile Trading
3TG FxECN0.50.5 pip5000.011:1001Regulated2Mobile Trading
4RunnerForexECN, STP0.90.9 pip1000.011:2002Unregulated2Mobile Trading
4XPECN, MM1.01 pip5000.01
1:3001Regulated2Mobile Trading
Abshire SmithSTP, MM1.31.3 pip5000.11:2001Regulated2Mobile Trading
AccentForexSTP0.50.5 pip100.011:5002Unregulated1Mobile Trading
ActivTradesMM, STP0.90.9 pip2500.011:4001Regulated2Mobile Trading
Admiral MarketsECN, MM1.01 pip100.011:5001Regulated2Mobile Trading
Ajax FinancialECN0.30.3 pip5000.11:1001Regulated2Mobile Trading
Alpari (UK)STP1.61.6 pip2000.011:5001Regulated2Mobile Trading
Arab Financial
Brokers
STP1.01 pip2,0000.011:4001Regulated1Mobile Trading
ATC BrokersECN, STP1.01 pip3,5000.11:1001Regulated1Mobile Trading
Atlas Capital FXECN/STP, MM0.80.8 pip500.011:5001Regulated2Mobile Trading
AxiorySTP1.91.9 pip1000.011:3002Unregulated2Mobile Trading
Blackwell Global
STP, NDD
0.10.1 pip
2000
0.01
1:200
1Regulated
2Mobile Trading
Boston Merchant
Financial
ECN, MM, STP0.60.6 pip1000.011:4001Regulated2Mobile Trading
BroCoECN, MM1.01 pip1000.011:2002Unregulated2Mobile Trading
CitiFX ProECN0.20.2 pip10,00011:502Unregulated2Mobile Trading
Delta Financial Markets LimitedMM/STP
1.01 pip
10
0.01
1:200
1Regulated
2Mobile Trading
DeltaStockECN, MM0.10.1 pip1000.011:2002Unregulated2Mobile Trading
Direct Currency MarketsECN0.90.9 pip10000.11:5001Regulated1Mobile Trading
DukascopyECN0.50.5 pip100101:1001Regulated2Mobile Trading
ECN Alpha LimitedECN, STP
0.50.5 pip2500.11:1002Unregulated1Mobile Trading
eToroSTP2.02 pips500.011:4001Regulated2Mobile Trading
Exto CapitalSTP0.80.8 pip1,0000.11:4001Regulated2Mobile Trading
FastBrokersECN, MM, STP0.00 pip5000.011:2001Regulated1Mobile Trading
FBSECN, STP1.01 pip50.011:5001Regulated1Mobile Trading
FIBO Group HoldingsECN, MM0.10.1 pip3000.011:2001Regulated2Mobile Trading
FIBO Group LTDECN, MM0.10.1 pip3000.011:2002Unregulated2Mobile Trading
FinexoMM, STP2.02 pips1000.11:1002Unregulated2Mobile Trading
FinFXDMA, ECN, STP0.00 pip1500.011:2002Unregulated1Mobile Trading
FinotecNDD, STP0.00 pip2000.11:2001Regulated1Mobile Trading
Forex Financial ServicesSTP2.02 pips5000.011:3001Regulated2Mobile Trading
Forex-Metal
STP/ECN
0.20.2 pip
1
0.01
1:500
2Unregulated
2Mobile Trading
Forex-TrendSTP0.00 pip200.011:1002Unregulated2Mobile Trading
Forex4youECN0.50.5 pip10.00011:5002Unregulated2Mobile Trading
ForexomaECN, STP1.01 pip5000.11:1002Unregulated2Mobile Trading
ForexYardMM, STP3.03 pips1000.11:2001Regulated2Mobile Trading
FX ChoiceECN, MM0.10.1 pip100.011:5001Regulated2Mobile Trading
FX ClearingECN, NDD, STP0.00 pip100.011:5001Regulated2Mobile Trading
FXCHSTP1.01 pip2,0000.11:5002Unregulated1Mobile Trading
FXCM MicroNDD, STP2.02 pips250.011:4001Regulated2Mobile Trading
FXCMNDD, STP0.90.9 pip2,00011:501Regulated2Mobile Trading
FX Financial GroupNDD, STP1.01 pip3005001:2001Regulated1Mobile Trading
FXGMSTP3.03 pips2500.0251:4001Regulated2Mobile Trading
FXOpenECN, MM0.00 pip10.0011:5002Unregulated2Mobile Trading
FXOptimaxSTP2.02 pips100.011:4002Unregulated2Mobile Trading
FxNet
STP
2.32.3 pips
5
0.01
1:500
1Regulated
2Mobile Trading
FxProMM, ECN0.00 pip5000.11:5001Regulated2Mobile Trading
FX UPECN, MM, STP0.00 pip10.011:5002Unregulated2Mobile Trading
Gallant Capital MarketsECN, STP0.20.2 pip1000.011:4001Regulated2Mobile Trading
GainscopeSTP1.01 pip2500.011:4001Regulated2Mobile Trading
Gedamo InvestmentECN, MM1.41.4 pip5000.11:5001Regulated2Mobile Trading
Global FuturesMM, STP1.41.4 pip2500.011:4001Regulated2Mobile Trading
GOMarketsSTP0.50.5 pip10.0011:5001Regulated2Mobile Trading
HFXSTP/ECN
1.51.5 pip
250
0.05
1:300
2Unregulated
2Mobile Trading
Hirose Financial UKSTP0.70.7 pip500.011:3301Regulated2Mobile Trading
IamFXSTP0.00 pip5000.011:4001Regulated2Mobile Trading
IFC MarketsSTP2.02 pips10.0011:4002Unregulated2Mobile Trading
InstaForexECN3.03 pips10.011:10001Regulated2Mobile Trading
IBFXSTP1.81.8 pip2500.011:501Regulated2Mobile Trading
International Capital MarketsECN0.00 pip2000.011:5001Regulated2Mobile Trading
Investors EuropeSTP0.50.5 pip2500.011:4001Regulated2Mobile Trading
Iron FXMM/ECN0.00 pip5000.011:5001Regulated2Mobile Trading
JFX (Jiffix Markets Limited)ECN/STP 0.00 pip1000.011:5001Regulated2Mobile Trading
LiteForexSTP0.00 pip10.0011:5002Unregulated2Mobile Trading
Loyal ForexECN, STP0.90.9 pip0.10.0051:4002Unregulated2Mobile Trading
Markets.comMM, STP2.02 pips500.11:2001Regulated2Mobile Trading
MasterForexECN, MM2.02 pips10.0011:5001Regulated2Mobile Trading
MBC Financial ServicesSTP2.02 pips2000.11:2001Regulated1Mobile Trading
MB TradingECN, STP0.00 pip4000.11:501Regulated2Mobile Trading
MF FinancialECN, STP0.00 pip1000.11:5001Regulated2Mobile Trading
MIG BankSTP0.60.6 pip2,0000.11:2001Regulated2Mobile Trading
MRC MarketsECN, MM0.50.5 pip1000.11:5002Unregulated2Mobile Trading
"OctaFx
"
STP
0.10.1 pip
5
0.01
1:500
1Regulated
2Mobile Trading
Pacific Financial DerivativesSTP/ECN0.00 pip2000.11:5001Regulated2Mobile Trading
PaxForexECN,STP,MM0.80.8 pip3000.011:5002Unregulated1Mobile Trading
PepperstoneECN0.10.1 pip2000.011:4001Regulated2Mobile Trading
Persepolis Capital ManagementECN1.01 pip5000.011:2001Regulated1Mobile Trading
PFG ForexSTP0.00 pip1,0000.11:1001Regulated2Mobile Trading
ProfiforexSTP2.02 pips10.011:5001Regulated1Mobile Trading
Real ForexECN/STP0.80.8 pip5000.011:2001Regulated2Mobile Trading
Realtime ForexECN, MM0.30.3 pip3,00011:1001Regulated2Mobile Trading
Renesource CapitalECN0.60.6 pip2,5000.41:1001Regulated2Mobile Trading
RFXTECN/STP0.30.3 pip1,0000.011:1001Regulated2Mobile Trading
RoboForexECN/STP0.10.1 pip100.011:5001Regulated2Mobile Trading
RVMarketsSTP0.00 pip10.011:5002Unregulated2Mobile Trading
SmartTraderFxSTP/ECN
0.20.2 pip
100
0.01
1:200
1Regulated
2Mobile Trading
Strato MarketsSTP1.01 pip3000.11:4001Regulated2Mobile Trading
Synergy FXSTP, ECN1.01 pip5000.011:4001Regulated2Mobile Trading
Swissquote BankSTP0.90.9 pip2,0000.11:1001Regulated2Mobile Trading
Tadawul FXSTP1.01 pip5000.051:5001Regulated2Mobile Trading
Tallinex
STP/ECN
0.00 pip
100
0.01
1:400
1Regulated
2Mobile Trading
Trader's TrustSTP1.81.8 pip1000.011:5001Regulated2Mobile Trading
Trader's WayMM/NDD/STP/ECN0.00 pip0.20.0011:5002Unregulated2Mobile Trading
TradeView ForexSTP0.80.8 pip1000.011:2001Regulated2Mobile Trading
Trading Forex
STP, ECN
0.40.4 pip
500
0.01
1:500
1Regulated
2Mobile Trading
UFXBankSTP2.02 pips1000.051:2002Unregulated1Mobile Trading
Universal FX (White label of ACM)STP0.90.9 pip2,0000.11:1001Regulated2Mobile Trading
Vantage FXSTP0.60.6 pip20.011:5001Regulated2Mobile Trading
Velocity TradeSTP0.50.5 pip1,0000.11:1001Regulated2Mobile Trading
Wall Street BrokersMM, STP2.02 pips100.011:5002Unregulated2Mobile Trading
WH SelfInvestSTP2,5000.11:10031Mobile Trading
XEMarkets (Trading Point)
MM, STP1.01 pip0.020.00011:5001Regulated1Mobile Trading
You Trade FXSTP2.02 pips1000.011:3001Regulated2Mobile Trading


On the subject of STP brokers:

Straight Through Processing brokers or simply STP brokers is the term which refers to brokers who do not undergo the filtering of orders in the course of a dealing desk. When STP brokers receive orders from different clients, the orders do not need to go through other processes, but rather, they are immediately submitted to the liquidity providers such as the banks, business trading corporations or other brokers.

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In short, there are no liaisons or mediators that go between the STP brokers and the liquidity providers. Because of the direct transactions involving the two providers (STP brokers and liquidity providers), this makes the electronic platform of brokers as STP.

Since there will be no mediators involved in the transaction process, STP brokers are able to satisfy their clients’ need by processing the orders right away. Also, STP brokers do not need to send the re-quotes back to the clients, because in the first place, the STP brokers themselves are the ones who make transactions directly with the liquidity providers. This, in turn, becomes very advantageous for the STP brokers because clients are then allowed to do some trading businesses, without restrictions, even during the times of release of financial news.

As an exchange market belonging to the top level, banks are used by many STP brokers as their liquidity providers in order to do transactions on the interbank market. In line with that, when there is an increase in number of liquidity providers, it also means an increase of client recruits. This means then that the market becomes better especially for STP brokers.

Why brokers use STP

It is wise to realize that when clients lose their profits, brokers do not actually profit from it. Therefore, brokers always want their clients to succeed as it is through that wherein they will also gain a lot. Brokers choose to be STP brokers because for one, they are almost always preferred by a lot of traders and investors. Since STP brokers do not utilize dealing desks, it also means that they do not need to spend more money for the salaries of their staff. If there are less number of staff, it means fewer expenses. Although there are less staff, it does not mean that the business transactions and processes involved are compromised as the STP brokers themselves are the ones doing the transactions. With the less number of staff, STP brokers are well compensated especially when it comes to the spread of its market with the help of the liquid providers involved in every trade. Since most STP brokers prefer to use banks as their liquidity providers, wherein fixed spreads are offered, STP brokers are able to provide both fixed and variable spreads to its valued clients.

STP brokers always earn something once their client makes a trade using an STP platform. Furthermore, STP brokers add a little increase over the spreads they receive from their liquidity providers when quoting an ask rate because STP brokers do not engage in trade against its client orders. The little increase is then added on top of the bidding price the STP brokers receive from the best bid liquidity providers before they pass the rates to their clients. After that, the clients confirm their orders using an electronic platform or an STP platform of the STP brokers, and then the rates are sent to the liquidity providers at a higher or lower rate, depending on the bid. With that, STP brokers carry out the same orders with that of the client, of course at a better price.

Why traders trust STP brokers

STP brokers are oftentimes trusted by the traders because of its transparency. It is a high risk when traders invest into something that can either be a true market or just an artificial one. Since STP brokers do not employ dealing desks, traders then choose to trade with them because of the fact that STP brokers are true brokers.

Traders who execute their investments with STP brokers usually have their trades filled immediately. This means that there are a lot of competitive markets out there who keep on bidding and offering through the liquidity provider.

Lastly, traders trust STP brokers because of the anonymity that it provides with the clients. Since it uses the No Dealing Desk method, wherein no mediator is involved, the clients’ orders are executed right away without exposing the clients’ personal details as well as the transaction of orders.


About ECN Brokers

The Electronic Communications Networks brokers, or known to many as ECN brokers, are brokers that offer the transparency that investors desire especially in trading. ECN brokers provide their clients with the DOM (Depth of the Market) in order for the clients to know what is really happening with their transactions.

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With a live DOM, investors are able to see everything including the bid and ask fares that are available in banks, market makers, hedge funds and even individual investors. These bids and ask fares are those that are presently available at that point in time. In line with that, ECN brokers are able to let their clients see the status of their orders — where their orders are placed or who hit their orders. With that being said, other traders are actually allowed to hit on those orders. This is what is meant by the transparency that ECN brokers provide. Needless to say, traders can take a look at the liquidity, and they can also execute some trades.

Among all other forex brokers, ECN brokers are considered to be the purest breed because of the full transparency of the transaction processes. Because of the transparent trading that is happening with the ECN brokers, investors are able to fully participate in the trades. ECN brokers display the important data using a drop down list. In the drop down menu, the best ask prices and bids are placed on top, then the next 4/5 bids and ask prices are shown below that. Moreover, ECN brokers provide their investors with the corresponding contract or volume size along with the bids and ask prices.

As ECN brokers are not actually market makers, it means then that they do not gain profits from the spreads. With that, ECN brokers ask a little amount from the investors. This little amount is called as the trading fee or the commission. This amount is charged to every transaction that is made by the traders. In that manner, ECN brokers earn a little of something out from the transactions that are being executed. It also follows that the ECN brokers’ interests revolve around the success of the traders. If traders earn more profits from the trades that are made through the ECN brokers, it means that more trades will be performed in the future. As such, more trades mean more transaction. And again, each transaction is charged. Although ECN brokers do not earn anything from the spreads, they still earn out from the large volume of traders that join in their market.

Some analysts say that STP brokers are just like ECN brokers. Although they may share the same characteristics, ECN brokers shine more because of their ability to display the real depth of the market. This is one thing that STP brokers don’t have. Another thing is that unlike ECN brokers, STP brokers provide fixed spreads to their clients.

With ECN brokers, no dealing desks are utilized. This means that the trades are being executed at a faster rate and that the traders remain anonymous. Due to the fact that there is transparency and anonymity, more competitive offers are expected on the bids and ask prices; as a result, lower spreads are created for the traders.

Advantages when trading with ECN brokers

  1. ECN brokers provide a fully transparent foreign exchange market for their investors (bids and ask prices of other traders are shown)
  2. There are no fixed spreads (although, there are some investors who see this is a disadvantage).
  3. ECN brokers make sure that their clients do not lose. Their clients’ success will always be prioritized in order to have a larger volume of traders in the future.
  4. When you invest with ECN brokers, no intermediaries are involved in the process. It means that from the brokers themselves, the orders go directly to the liquidity providers.
  5. ECN brokers ensure anonymity to their tradersThe orders will never be executed at a lower or worse price, rather, ECN brokers execute the orders at a higher price.

Disadvantages when trading with ECN brokers

  1. ECN brokers charge a trading fee on every transaction.
  2. When the liquidity is low, ECN brokers have higher spreads compared with brokers with fixed spreads.


Risk Disclaimer

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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