The Ultimate Showdown: ECN vs. STP Forex Brokers
The choice between Electronic Communication Network (ECN) and Straight Through Processing (STP) brokers is a pivotal decision for forex traders, directly impacting execution speed, cost efficiency, and strategy viability. Non-Dealing Desk (NDD) execution models eliminate conflicts of interest inherent in Market Maker systems, ensuring transparent order routing to liquidity providers.
ECN and STP brokers thrive on neutrality, profiting from commissions rather than client losses. This structural advantage makes them indispensable for high-frequency trading and scalping strategies, where slippage and latency can erode profitability.