Forex Trading Guide: What Is Straight Through Processing (STP)?

Bifu Research · 2026-06-22 · 2 min read

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Straight Through Processing (STP) is an important order execution model for forex brokers. This article provides a comprehensive analysis of how STP works and its practical significance for traders.

Straight Through Processing (STP) is a method used by forex brokers to handle client orders, whereby client trading instructions are transmitted directly to liquidity providers (banks, other brokers) without passing through the broker's own trading desk.

How STP Works

In STP mode, when a client submits a buy or sell order, the order is automatically routed through an electronic system to one or more liquidity providers and executed at the best available price. The entire process requires no human intervention, resulting in fast execution and high transparency.

Differences Between STP and Market Maker (MM)

Market maker brokers act as the counterparty to client trades, directly accepting and completing transactions; when a client profits, the market maker bears the corresponding loss. STP brokers do not act as counterparties; they serve only as a channel between the client and the liquidity market, resulting in fewer conflicts of interest.

Cost Structure of STP

STP brokers generate revenue by adding a markup to the original spread, rather than earning from client losses as a counterparty. Therefore, in theory, STP brokers want clients to trade actively (rather than lose money), aligning their interests more closely with those of the client.

Advantages and Disadvantages of the STP Model

Advantages include: no conflict of interest; transparent execution; fast order processing. Limitations include: spreads are typically variable and may widen during periods of market volatility; compared to the ECN model, access to liquidity sources may be more limited.

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Straight Through Processing (STP) is an important order execution model for forex brokers. This article provides a comprehensive analysis of how STP works and its practical significance for traders.

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本文仅供教育与信息参考之用，不构成投资建议。交易具有风险，历史表现、示例与市场分析均不保证未来结果。

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