Trade Stock Indices

Learn Stock Indices Trading

Why Traders Choose Best Indices Trading STP Broker and The Difference Between Best Indices Trading STP Broker and Best Indices Trading ECN Broker

Difference Between STP and ECN

Best Indices Trading STP Broker or Straight Through Processing, is the name given to brokers that, when upon receiving a client order they will pass on the indices orders directly to their Indices Trading Liquidity Provider. Liquidity providers can include Banks and as such there is no intermediary involved in the order processing in other words the Straight Through Processing does not filter the indices orders through a Dealing Desk. The absence of a Dealing Desk intervention is what makes this electronic trading platform a Straight Through Processing.



With the absence of an intermediary process (dealing desk) the Best Indices Trading STP Broker, Straight Through Processing execution will be able to process its clients orders instantly without any delay. This makes Best Indices Trading STP Brokers the most recommended indices broker type. The Straight Through Processing Brokers will also not send re-quotes to its clients something that most investors regard as very important. The Straight Through Processing execution will also in effect will allow its clients to trade during the release of financial news without any restrictions.



Straight Through Processing indices brokers benefit from having several liquidity providers and an increase in the number of providers in the system means better fills for the client. A large number of Best Indices Trading STP Brokers will use banks trading on the Interbank market as their liquidity providers.


Before Reading Spot the difference between these two headings so that the headings below don't seem like a repetition.

  • Reasons why Brokers choose Straight Through Processing execution

  • Reasons why Traders Choose Straight Through Processing execution


Reasons why Indices Brokers choose to be Best Indices Trading STP Broker


In addition to the fact that most indices traders prefer Straight Through Processing due to the fact that a clients losses are not a brokers profit. It is therefore in the indices broker 's interest for the Client to make profitable trades, a Straight Through Processing execution often implies that there is No Dealing Desk (NDD) and subsequently has less expenses through its staff salaries.



An Best Indices Trading STP Broker is compensated through a markup on the spread it obtains from its Indices Trading Liquidity Provider and/or commissions imposed for each trade. As most liquidity providers of Straight Through Processing execution are banks on the Interbank market, the majority of which offer fixed spreads this allows the Straight Through Processing Brokers to provide both fixed and/or variable spreads to its clients.


Each time a client trades through a Straight Through Processing platform, the Best Indices Trading STP Broker will always make a profit. As Straight Through Processing add a small markup to the spread they receive from their provider when getting quoting of bid/ask rate. The Best Indices Trading STP Broker will apply this markup by a certain amount of fractional pips to the bid and ask stock indexes price that it receives from its best bid/ask Indices Trading Liquidity Provider before passing the rates onto the client via the straight through processing electronic platform.



As the client places the order through the Straight Through Processing platform, the stock indices orders are then sent directly to the Indices Trading Liquidity Provider and as such the Best Indices Trading STP Broker executes the same orders as the client at a slightly better stock indexes price which is the markup.



Reasons why Indices Traders Choose Straight Through Processing brokers


Clients often choose to execute trades via an Best Indices Trading STP Broker as it often implies there is no Dealing Desk, which in turn means that the indices broker is more transparent with the clients.



The Traders enter trades into a true market instead of an artificial market that may be created by a market maker. Client trades obtain better and faster fills through an Best Indices Trading STP Broker.



The better and faster fills are obtained directly from the many competitive market bids and offers coming through the Straight Through Processing liquidity providers, which provide for more liquidity within the stock indexes trading market and in turn this implies lower execution indices prices for the client.



Client transactions with an Best Indices Trading STP Broker means there is anonymity for the client as there is no Dealing Desk monitoring the transactions of orders coming in from each client. The trading Indices Trading orders are instead executed automatically through the stock indexes trading market network anonymously.


Another Type of Online Indices Broker is Best Indices Trading ECN Broker


What is an Best Indices Trading ECN Broker?

Electronic Communications Network- Best Indices Trading ECN Broker provide traders with real time data quotes straight from the network of banks that trade Indices- The Interbank market. Since these Best Indices Trading ECN Brokers offer real time data indices trading quote from these network via their own Electronic Communication Network which connects directly to the Interbank network of banks, they are known as Best Indices Trading ECN Broker technology brokers, short form is Best Indices Trading ECN Broker.



Best Indices Trading ECN Broker will show the entire bid and ask offers currently available in the stock indexes trading market from banks. An Best Indices Trading ECN Broker will allow traders to place their indices orders straight through to the stock indexes trading market. The liquidity is not provided by the indices broker but by this Interbank network of banks. This way indices traders trading through an Electronic Communication Network gets high liquidity and execute trades very quickly and instantly without getting re-quoted.



Most Traders ask which is the best between the Best Indices Trading STP Broker and the Best Indices Trading ECN Broker? And What is the difference between these two?


Best Indices Trading STP Broker

Has many liquidity providers, but chooses the best at any one time automatically for the indices trader. Therefore when a indices trader places a trade the stock indices orders will be passed direct to this interbank.

Therefore Best Indices Trading STP Broker is like Best Indices Trading ECN Broker the only difference is that the Straight Through Processing Brokers automatically chooses the best one at that particular time and does it automatically for the indices trader.

Best Indices Trading ECN Broker

Has many liquidity providers from which a indices trader will see all at the same time and choose which to trade, It is like having 10 indices brokers to choose from which to trade.

The Best Indices Trading ECN Broker a indices trader will have to look at many streaming quotes at the same time and choose one, this streaming indices trading quote will have varying spreads and a indices trader chooses the lowest spread.


There is no much difference between Best Indices Trading ECN Broker and Best Indices Trading STP Broker, that is why some traders or some brokers will use the term interchangeably, because the only difference between Straight Through Processing execution from the Electronic Communication Network execution is that the Best Indices Trading STP Broker only chooses to have only one Indices Trading Liquidity Provider while Best Indices Trading ECN Broker implements a wide variety of liquidity providers and it is up to the indices trader to choose which Indices Trading Liquidity Provider to choose from while trading.


According to reviews, these brokers are also have the lowest spreads, therefore if you are looking for the lowest spreads it is good to choose an Best Indices Trading STP Broker.


Most online indices brokers do not want to clutter the indices traders workspace with multiple indices trading streaming indices trading quote from various different places which might confuse the indices trader, especially the novice indices traders who do not know what is what, that is why most indices brokers might be Best Indices Trading ECN Broker but only choose to display only one streaming quotes from only one interbank, therefore becoming more of an Best Indices Trading STP Broker rather than an Best Indices Trading ECN Broker, but the model of operation is basically one and the same.


If you were to open a indices trading account with an Best Indices Trading ECN Broker you would get like 10 quotes of Indices from different banks and to trade you would have to chose the indices trading quote from one of these banks. 10 stock indexes price quotes for indices would make your indices trading platform workspace too crowded (An Best Indices Trading ECN Broker Lists Spreads from many liquidity providers). Another thing is that you would need a more complex indices trading platform to stream these multiple stock indexes price quotes, this type of platform would not make the best trading platform/software to trade with. Furthermore if you open an Best Indices Trading ECN Broker account you will have to pay additional commissions on top of spreads. This is also another reason why to choose Best Indices Trading STP Broker since unlike Best Indices Trading ECN Broker, Best Indices Trading STP Broker do not charge commissions. This means that the Best Indices Trading ECN Broker is not the cheapest execution method and will charge traders extra commissions adding onto your transaction costs.


Best Indices Trading STP Broker Brokers offer the best liquidity conditions for clients to make profitable trades

Best Indices Trading STP Brokers do not have a dealing desk and therefore this provides for full trade transparency, faster and better order fills. The full transparency means this type of indices broker does not create an artificial market for clients, but instead shows a indices trader the real time data indices trading quote from an electronic network of banks and allows the indices trader to enter the true market conditions created by the various stock indices market participants.


Straight Through Processing - is the name given to brokers that; upon receiving of a client order they will pass on the indices orders directly to the network of banks and as such there is no intermediary who will be involved in the order execution in other words the Straight Through Processing Execution will not be filtering orders through a Dealing Desk. The absence of a Dealing Desk is what makes the electronic communication network the best choice for many traders.


With the absence of such an intermediary process such as the indices trading dealing desk the Best Indices Trading STP Broker is able to process its clients stock indices orders without any delay. In addition these brokers do not send re-quotes to their clients something that most Indices Trading investors regard as a huge advantage.


This also enables the Straight Through Processing Brokerages to allow its clients to trade during the release times of financial news without any restrictions. Other online indices brokers might not have the liquidity of an Best Indices Trading STP Broker and might in turn lock out trading for a few minutes before and after a news release.


Indices Trading Straight Through Processing Brokers provide the best 24-hour execution and access to order execution due to high internal liquidity rate and reliable interbank partners they have.

Difference Between STP and ECN - Indices Trading ECN Meaning - Indices Trading STP Meaning

 

Forex Seminar Gala


Forex Seminar




Broker