STP FOREX AND POSITIVE SLIPPAGE

What is STP forex?


Straight through processing (STP) is an initiative that financial companies use to optimize the speed at which they process transactions. This is performed by allowing information that has been electronically entered to be transferred from one party to another in the settlement process without manually re-entering the same pieces of information repeatedly over the entire sequence of events.

It also means that there is no dealing desk involved in quoting & controlling market prices (no market making), but instead all orders are passed through to Liquidity Providers (other brokers and banks) where they are executed at the bid/ask rate given by those Liquidity Providers.

However, sometimes there are brokers who do not route your orders to the real market and act as an STP broker but in reality is a Market Maker. For instance, successful traders or successful trading algorithms will be automatically routed to the market while small or losing clients will not be. This way the broker profits twice: once by clients’ losses and the other by way of successful traders thru commissions. This type of setup is also responsible for all the re-quotes and order rejections. When you open a large order, the broker routes it to the market, but the prices there might have already changed (the market does move very fast sometimes) – so the broker is faced with two options: either rejecting the order asking you to adjust prices or completing the order by taking the risk that it might end up as a successful trade wherein the broker will have to pay you from its pockets.

STP forex and positive slippage


Slippage is a normal occurrence in forex trading which usually happens when the client placed an order while the price is moving so fast. Slippage is the difference between the expected price to the executed price and it can be either positive or negative depending on the price’s direction. So if a broker guarantees its customers a zero slippage, it might be a market maker(Not real STP brokers) who acts against its customers. Market makers will use “maximum slippage” function or another filter that passes no positive slippage. With The BullFx, you will experience the “positive slippage” as describe below.

STP forex and positive slippage

Market maker diagram


market maker diagram


About our setup


Here at The BullFx, you are guaranteed 100% that Manipulation is eliminated, orders are routed to major banks and providing true market quotes, real time execution and no waiting time in trading transactions.

Real Time Execution

100% No dealing desk to intervene, no re-quotes. Only the best prices in the marketplace; with orders final and confirmed as soon as they are dealt and filled.

Anonimity

Trading activity with The BullFx is anonymous. Neutral pricing and real market conditions are what clients can easily take advantage of.

Liquid Market

The BullFx guarantees that clients will be given a chance to trade in a global liquidity pool of competitive and regulated financial institutions.

Tight Spreads

Price is competitive due to the brokers volume flow generated through the STP, which encourages the liquidity providers to give competent pricing as they compete for the flow. Price quotations are gathered from several market participants, thus offering tighter bid/ask spreads.

Positive Slippage

Slippage is inevitable, but you are assured that your orders are always filled with better price should the markets fluctuate and be highly volatile.

Lower Latency

The BullFx strives to improve the 0.3 execution rate to have the clients’ orders filled in the least time possible because every second counts.

Real Time Execution

100% No dealing desk to intervene, no re-quotes. Only the best prices in the marketplace; with orders final and confirmed as soon as they are dealt and filled.

Anonimity

Trading activity with The BullFx is anonymous. Neutral pricing and real market conditions are what clients can easily take advantage of.

Liquid Market

The BullFx guarantees that clients will be given a chance to trade in a global liquidity pool of competitive and regulated financial institutions.

Tight Spreads

Price is competitive due to the brokers volume flow generated through the STP, which encourages the liquidity providers to give competent pricing as they compete for the flow. Price quotations are gathered from several market participants, thus offering tighter bid/ask spreads.

Positive Slippage

Slippage is inevitable, but you are assured that your orders are always filled with better price should the markets fluctuate and be highly volatile.

Lower Latency

The BullFx strives to improve the 0.3 execution rate to have the clients’ orders filled in the least time possible because every second counts.

Risk Warning : Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Forex and CFD Trading involve a significant risk to your invested capital. Please read and ensure you fully understand our 'Risk Disclosure'.

 

Symbol Bid Ask Spread
EURUSD 1.17817 1.17834 1.7
GBPUSD 1.31962 1.31985 2.3
USDCAD 1.29063 1.29083 2
USDJPY 112.722 112.742 2
USDCHF 0.95542 0.95563 2.1
AUDUSD 0.72916 0.72936 2
NZDUSD 0.66947 0.66969 2.2
EURGBP 0.89270 0.89293 2.3
EURCHF 1.12577 1.12598 2.1
EURJPY 132.828 132.845 1.7
AUDJPY 82.202 82.223 2.1
GBPJPY 148.769 148.793 2.4
USDSGD 1.36305 1.36328 2.3
XAUUSD 1207.93 1208.21 28
XAGUSD 14.366 14.395 2.9

Disclaimer:

The above live prices are provided solely for informational purposes, not for trading purposes, and may be delayed.