Straight Through Processing (STP) accounts have always been a favorite choice of brokers due to minimum spread, less risk and instant execution of orders. Many brokers offer the facility of STP accounts against some predetermined commission and initial deposit not less than $1000, hence making them less affordable for a majority of small-scale investors and traders. However, like many other revolutionary and distinctive offers, FXOpen has once again beat its competitors by offering the facility of STP accounts with mere $100 initial deposit and 0% commission.
What is an STP account?
Through STP accounts, a broker allows traders to deal directly with large liquidity providers, hence eradicating the concerns of a trader regarding execution time for an order, spread, slippage, or any other aspect of trading. Orders of a trader are transferred in real-time to interbank liquidity.
Why choose FXOpen for STP trading?
There are some features that distinguish FXOpen among other STP service providers, let’s have a quick look at a few of them.
As we mentioned above that FXOpen is offering STP service at 0% commission. The broker earns through difference, called DAB, on every trade instead of commissions. DAB is the difference between the best Ask and the best Bid. For example, the highest available bid for GBP/USD is 1.6750 and the lowest available ask price is 1.6751, then in this case 0.0001 will be DAB or difference or in other words earning of the broker.
Exact Execution of Orders
Since no dealing desk is involved and a trader has direct link with liquidity providers, so orders are executed in real-time without any re-quotes. This feature is particularly very useful if you are a scalper or a hedge fund, because relatively more risk is involved in that sort of trading systems.
Traders get the lowest possible spreads through FXOpen. The spreads are floating not fixed, means traders will get real-time spreads. Typically, spread for EUR/USD shall be less than 2 pips most of the time. Low spreads are very much desirable in high volume trading as they minimizes the risk factor and maximizes the profitability.
In addition to abovementioned advantages, FXOpen is regulated by Britain’s Financial Services Authority (FSA). It means your funds are safe and you need not to worry about any inconvenience in withdrawals or any other issue pertaining to your investment.
Furthermore, the company accepts deposits through almost every notable payment system including PayPal, MoneyBookers (Skrill), Payaza, etc. The company has recently started accepting payments through Bitcoin and a few other digital currencies as well.
FXOpen has made STP trading affordable for small-scale traders due to 0% commission, minimum initial deposit and very low spreads.
The broker connects traders with top liquidity providers. Orders are filled at the best prices available at specific time.
FXOpen’s STP accounts are particularly useful for scalpers and other high volume traders due to instant execution and no commissions.