Straight Through Processing (“STP”) is a unique process that accelerates the execution speed of clients’ orders by eliminating the need for a dealing desk intervention. Clients’ orders are automatically routed to liquidity providers or execution venues, ensuring efficient and timely execution. An “STP Broker” acts as a facilitator, transmitting all orders to these providers without becoming a counterparty to clients’ transactions. The STP Broker earns revenue from trading volume, often through mark-ups on spreads and/or commission charges.

Trading through an STP Broker generally minimizes conflicts of interest, as the broker’s earnings are unaffected by clients’ profits or losses. There are no strategy restrictions, and trading occurs with complete transparency.

As a result, there is no conflict of interest: whether the client profits or loses on a trade, the broker’s earnings remain consistent. However, successful trading by clients can lead to increased trading volume over time, benefiting both parties financially while maintaining transparency throughout the process.