What is ECN/STP Execution?
ECN/STP (No Dealing Desk)
Forex Trading Glossary
Quick Answer: ECN/STP brokers route orders directly to liquidity providers, earning commissions instead of trading against clients.
What is ECN/STP Execution?
ECN/STP (No Dealing Desk) execution routes orders directly to liquidity providers. The broker earns commissions or small markups rather than trading against the client.
Benefits
- Transparency: Direct access to market prices.
- Lower conflict: Broker interests align with trader success.
- Tighter spreads: Especially during liquid sessions.
- Depth of market: Some platforms display Level II quotes.
Know Your Broker
Verify that your broker truly offers ECN/STP by reviewing commission structures and liquidity provider disclosures.
Considerations
- Commission costs: Factor explicit fees into trade planning.
- Infrastructure: Use stable internet for best execution.
- Slippage: Still possible during extreme volatility.
- Regulation: Choose brokers under reputable regulators.
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