Just another option for some of you overseas traders.
http://www.smartlivemarkets.co.uk/pa...e-markets.aspx
http://www.smartlivemarkets.co.uk/pa...e-markets.aspx
ECN is not the same as STP
STP means Straight Through Processing. that means that the broker puts your order through to the liquidity pool unlike non STP that fills your order and then tries to find it in the market (1 pip bucket shops). There are many types of STP, MM (Market Maker) is my favorite. they offer locked spreads and have a deep pool of their own. ECN is a type of STP.
ECN is basically a liquidity pool (Electronic Communication Network) between banks, it is offered as a service to small Brokerages, they become a sort of introducing broker for the ECN, you will notice high commissions in this case. If a bank is part of the ECN it has cheaper commissions but a high minimum deposit.
I do not personally like a floating spread, but some EAs love the small spread and do better, even though you will pay the same because of the commissions.
SO BASICALLY:
An ECN is a type of STP. The ECN type STP has a floating spread and commissions.
An STP means you are getting filled from the market, the broker is taking no risk and therefore cannot be considered a bucket shop. There are many types and combinations of STP brokers. STP allows scalpers and scalping EAs. as they take no risk they are happier the more you trade and do not care how you do it.
Non STP broker will kick you out if you scalp to fast or use very fast scalping robots, you are beating them at there own game. they will either go bust or keep your money
These are the impossibly low fixed spread brokers, if you swing trade you may enjoy them. You never get a requote from this type of broker, because they are filling your position themselves (and taking the risk) but on the flip side they may kick your position if it is a winner and/or stop hunt you if they are losing. BUCKET SHOP.
Hope that helps
STP means Straight Through Processing. that means that the broker puts your order through to the liquidity pool unlike non STP that fills your order and then tries to find it in the market (1 pip bucket shops). There are many types of STP, MM (Market Maker) is my favorite. they offer locked spreads and have a deep pool of their own. ECN is a type of STP.
ECN is basically a liquidity pool (Electronic Communication Network) between banks, it is offered as a service to small Brokerages, they become a sort of introducing broker for the ECN, you will notice high commissions in this case. If a bank is part of the ECN it has cheaper commissions but a high minimum deposit.
I do not personally like a floating spread, but some EAs love the small spread and do better, even though you will pay the same because of the commissions.
SO BASICALLY:
An ECN is a type of STP. The ECN type STP has a floating spread and commissions.
An STP means you are getting filled from the market, the broker is taking no risk and therefore cannot be considered a bucket shop. There are many types and combinations of STP brokers. STP allows scalpers and scalping EAs. as they take no risk they are happier the more you trade and do not care how you do it.
Non STP broker will kick you out if you scalp to fast or use very fast scalping robots, you are beating them at there own game. they will either go bust or keep your money
These are the impossibly low fixed spread brokers, if you swing trade you may enjoy them. You never get a requote from this type of broker, because they are filling your position themselves (and taking the risk) but on the flip side they may kick your position if it is a winner and/or stop hunt you if they are losing. BUCKET SHOP.Hope that helps
Even wikki no wording STP. So what is it? About ECN write. And about the STP only on the forums can be read.
