Compare the best STP brokers in 2023

Many forex brokers use Straight Through Processing technology to offer traders a fast service and competitive pricing. Use this beginner’s guide to find the best STP forex brokers available today.
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Updated: Jan 23, 2023
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This page picks out the best forex brokers that use STP technology and compares them to help you decide which one to use. Learn about the key features of each platform and assess the benefits versus the risks of signing up.

Best STP forex brokers overall for 2023

  1. eToro: Best for beginners, copy-trading & demo-account
  2. OANDA: Best for trading with live market data
  3. Capitality: Best for trading like a pro

What are the best STP brokers?

Our forex experts have ranked the leading STP brokers and you can sign up to any of them through the links in the table below. Keep reading for more information on why each one made the cut.

1
Min. Deposit
$ 10
Promotion
User Score
10
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$ 10
Promotion
User Score
10
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Start Trading
Payment Methods:
Bitcoin, Credit Card, Debit Card, Visa
Full Regulations:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
3
Min. Deposit
-
Promotion
User Score
9.8
Take a position on major global indices, including US Wall St 30 and France 40
Low spreads and accurate pricing reflecting the underlying market
Comprehensive analysis and new for better decision making
Start Trading
Payment Methods:
Bank Wire, Check, Credit Card
Full Regulations:
CFTC, FCA, IIROC, MAS, NFA
Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest.

Top 8 STP brokers, reviewed

1. eToro. Best for beginners, copy-trading & demo-account

1500

No. assets

$10

Minimum deposit

Forex

Platform type

Pros & Cons

Overview

Visit eToro Read Review

2. Oanda. Best for trading with live market data

oanda logo

1500

No. assets

$10

Minimum deposit

Forex

Platform type

Pros & Cons

Overview

Visit Read Review

3. Capitality. Best for trading like a pro

capitality logo

...

No. assets

...

Minimum deposit

Forex

Platform type

Pros & Cons

Overview

What is an STP broker?

STP platforms are a type of no dealing desk forex broker that sends trades automatically to the market. This is in contrast to a dealing desk, which is a ‘market maker’ that takes the other side of a trade itself rather than passing the order on.

It’s difficult to be certain about what type of broker a platform is. Few platforms are explicitly clear about their service and you can have hybrids; brokers that have a dealing desk but also operate some form of electronic network or straight through processing technology.

There are a few clues that can help differentiate them. No dealing desk brokers that use STP often have better prices but larger spreads, as you’re interacting with the forex market directly. Market makers have smaller spreads but can restrict trading during high volatility, as they set the prices and take the trades.

How do STP brokers work?

STP brokers send trade orders directly to the interbank market without routing them through a market maker first. This gives traders that use this type of broker access to the rates that banks and other financial institutions get when they trade currencies among themselves.

The two big advantages of an STP broker are speed and price. Your trades are sent straight to the market (hence the name ‘Straight Through Processing’) rather than going through a middleman, and that same lack of an intermediary means there is no one taking a cut of the potential profit.

Should I use an STP broker?

It’s a great option if you’re experienced and know what you’re doing. The decentralised nature of the forex market lends itself to choosing an STP or an ECN broker instead of a market maker. The prices are better and there is no danger of the broker restricting trading.

However, the flip side is that there are far fewer protections. The spreads are higher as the prices are more volatile, which means there might be a significant difference between the buy and sell price for a currency. You normally also have to navigate a more complex trading interface, rather than the simplified ones provided by market makers that target the casual trader.

For any new trader, a market maker is the best option. They are normally the forex brokers with demo accounts so that you can practice first and then the real thing has fewer risks than with an STP broker. For more advanced traders with lots of volume, an STP or ECN broker is an excellent choice.

What are the risks of using STP brokers?

The biggest risk is that you can lose money. The risks are heightened with this type of broker compared to a market maker because the minimum lot (i.e. the trade size) is higher, so you have to place larger trades.

The fact that you deal direct with the market means that prices can swing much faster and the spreads are higher. The combination of those two factors can leave you with currencies that you can only sell at a significant loss.

Here are some of the benefits versus the risks of using an STP broker.

Benefits

  • Faster trades reduces the chance of slippage
  • Accurate price quotes
  • STP brokers act for you, rather than profit from you as many market makers do
  • STP lot sizes are normally lower than ECN brokers

Risks

What are the fees for using an STP broker?

The fees can either be a commission or a markup on the currency prices. Commissions can be charged as a percentage of total trading volume over a period of time, such as a month. Markups are simply an addition to the price that’s charged by the market and are the primary reason why forex brokers charge different prices.

Methodology: How did we choose the best STP brokers?

We use every broker and perform a series of tests to assess the service. These tests include setting up an account, making a deposit, and placing a trade. Additionally, to compile this page we looked through each broker’s legal and supporting documentation to ensure that they offer Straight Through Processing technology in some form.

The results from the test are combined with online research and customer reviews to create a final ranking. We also consider any sign up bonuses or other additional features, such as how well their customer service department performed in response to a series of questions.

Our review process ensures that no platform has the ability to influence the content on this page in any way. We may earn money through partner affiliations if you sign up to a platform after following a link on this page.

FAQs

Which is best ECN or STP?
Do STP brokers offer apps too?


Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.