Does An STP Account Guarantee No Intervention From A Broker?
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STP works through a bridge that connects a trader’s terminal directly to a liquidity provider or an interbank. STP bridges are also used by smaller brokers to connect their traders to large brokers, who will, in turn, choose to either connect the trader directly to the market or decide to absorb the trades internally. Therefore, STP is not a true ECN alternative, as ECN brokers have no role in filling up their clients’ orders. STP, on the other hand, allows brokers to tap into a larger liquidity pool that is provided either by the global exchange houses or by larger brokers. Therefore, STP Forex brokers are not completely free from conflicts of interest, but STP accounts do provide a greater sense of security than traditional market maker brokers.
Reprinted from Forexbonuses, the copyright all reserved by the original author.
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