Question: How STP (Straight Through Processing) works on MT4 (MetaTrader4) trading platforms?
FXTM’s pricing is derived from several top-tier liquidity providers who stream prices to the platform.
As FXTM is a NDD(Non-Dealing-Desk) broker, and the company strives to offer transparent complete STP(Straight Through Processing) trading environment, the connections can be explained as below.
Clients of FXTM ⇔ MT4 ⇔ FXTM ⇔ Liquidity Providers(Banks)
The Prices come from the Liquidity Providers, and FXTM receives the data and reflect it on MT4.
The prices you are seeing on the FXTM MT4 are solely provided by the “Liquidity Providers” and FXTM only acts as a middleman to create a bridge for traders to access the market created by the “Liquidity Providers”.
Isn’t all Forex brokers adopt ‘STP’ model?
No, not actually.
As there are mainly 3 types of Forex brokers as follows:
- Market Makers – a broker without liquidity providers, but the broker decides the price and rules
- Half Market Makers and Half STP – a broker which decides whether to send clients’ orders to liquidity providers, or hedge(counter order) them by acting as a Market Maker
- STP – a broker who sends all clients’ orders to its liquidity providers, without hedging them
Majority of broker prefer the second one, as it is also the most successful model so far.
But FXTM, on the contrary, has decided to not interfere clients’ trades, but send them all to the Forex Markets(liquidity providers).
How can you confirm the FXTM’s “STP”?
One thing to prove that FXTM does offer “STP” trading environment, is that FXTM does not restrict anything on the trading platform.
You are allowed to do anything in order to make profits, and FXTM is not going to stop you from that.
The broker only makes money when its traders trade, but doesn’t make money by traders losing money like many other brokers.
For further information, please contact FXTM support from the Official Website.