What is Difference Between Straight Through Processing and Market Maker Account in Indices Trading?

STP Account Indices Trading vs Maker Trading Account

STP Trading Accounts

STP Trading Account stands for Straight Through Processing, the STP Account brokers will send client orders direct to their Indices Trading Liquidity Provider, the Indices Trading Liquidity Provider is a large bank with deep liquidity that's required to trade on the inter-bank network.

An STP Trading Account provided by an STP broker can either have one Indices Trading Liquidity Provider or many liquidity providers.

The best thing about STP Trading Accounts is that stock traders can place their stock trades immediately with instant execution because they have access to interbank markets via their STP broker.

STP Accounts will not charge commissions, but will charge spread on stock trades. Because traders have access to inter-bank market execution, there's no re quotes on the orders neither any trade order waiting for execution, order execution is instant.

MM Accounts

Market Maker Trading Accounts are broker accounts where Market Maker brokers have a dealing desk execution model where they can match the orders in house without going to the stock market.

Indices orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This stock trading broker can make the decision to either execute a stock order that's the opposite of a trader's order thus if the trader makes a loss the broker makes a profit, & if trader makes a profit the broker makes a loss.