Whats the difference between STP and ECN?
- Joined Feb 2012 | Status: Member | 2,844 Posts
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
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DislikedStocks are not centralized either, there are many different venues where the same stock can be traded (exchanges, ECNs, dark-pools, even OTC). The difference is, that due to regulation, a broker has to fill an order with the best price available (except if the trader himself routes the order to a specific ecn) - whereas in f/x a broker does not have such an obligation.Ignored
DislikedECN could be divided under two words: 1) PURE ECN (Only one broker i kbow) -no DD villa at all. 2) STP ECN (almost semi-market maker) -have a VERY big building for DDIgnored
DislikedNot an expert, but this is what my understand is. The short version is that STP/ECN brokers do not take the other side of trades, but send or match trades directly with the banks/liquidity providers. This is different from dealing desk market makers who would "trade against you" taking the other side of the trade and then deciding what to do with it (match it with another acct, send it to liquidity provider, or hold on to it themselves). The longer version: STP stands for Straight-Through Processing (or Straight-Thru Processing). This means your...Ignored
DislikedWhich platform is more appropriate to the concept of scalping ? ECN or STP ? any advantage from one moreIgnored
DislikedWhich platform is more appropriate to the concept of scalping ? ECN or STP ? any advantage from one moreIgnored
Disliked{quote} It depends on the lots size you plan on trading with. For and ECN account you will be charged a commission (normally around $3 per lot, but dependent on the broker) that you will first have to cover, as well as the slight spread, before being able to make a profit. With a STP broker, no commission is charged, but the spread difference is larger than the ECN account. If you plan on trading large lots, then look more at a reliable ECN broker as it will be easier to cover the spread difference with a smaller market movement. If you are going...Ignored