What Is ECN/STP Trading?

First of all, both ECN and STP refer to non-dealing desk brokers. Users have their orders filled 100% electronically on the fly, while the system automatically selects the best available price. This feature eliminates a potential conflict of interest between a trader and his or her broker.

ECN stands for Electronic Communications Network. These brokers deal with no intervention while routing your orders to the interbank market directly. As stated earlier, each order is stated with the best available price on the market. The main mission of the ECN broker is to deliver routing services despite the trader’s identity or stop orders being placed.

STP means Straight Through Processing. The technology takes each trade and passes it to the market or another counterparty electronically. In simpler words, orders are also routed automatically. However, the path can be different.

Having a proven Forex broker by your side makes it much easier to deal with everything