A type of broker that routes client orders directly to liquidity providers with no dealing desk intervention. STP is often used synonymously with NDD. An STP broker essentially passes your trade along to be filled by one of its liquidity sources (“back-to-back” order processing). They typically aggregate quotes from banks and display the best bid/ask to you, adding a small markup as their fee (or charging a commission). The result is usually variable spreads and quick execution. For traders and EAs, trading with an STP broker means you are closer to real market prices and usually won’t suffer requotes. STP brokers make money via a tiny spread markup or commission, so their interest is aligned with trading volume, not trading losses. Do note that some brokers label themselves STP/ECN but still run a hybrid book (internalizing small trades, STP larger ones). In general though, STP is considered favorable for automated trading – you get efficient pricing and execution, suitable for most strategies from scalping to long-term.

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