In plain English
What STP broker means
STP means straight-through processing. In retail trading, the term usually describes an automated order-routing setup in which the broker passes orders onward with limited manual intervention. That can speed processing, but it does not tell you whether the broker internalizes some flow, aggregates quotes, or adds markup.
Why it matters
STP describes the path of an order, which can affect how quickly it is handled, whether it is routed to one or several counterparties, and how fees are charged. The phrase is useful only if you also know whether the broker acts as principal, agent, or both in different circumstances.
Example
A trader places a sell order in EUR/CHF. The broker’s system sends the order automatically to one or more liquidity providers, which may fill it at the available bid or part-fill it across several venues. This simplified example excludes commissions and any spread markup.
Quick answers
Common questions
Is STP the same as ECN?+
No. They can overlap, but ECN refers to the venue/network concept while STP refers to the routing method.
Does STP remove requotes?+
Not automatically. Requotes depend on the broker’s execution policy and market conditions.
Sources