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STP Broker: Why And How To Recognise The Real Deal

Blog | 18 Mar 2021 04:52/PM GMT

Choosing a broker for trading has been a concern for financial market participants. In the fast-growing market such as forex, there are many options. This time we take a look at the among popular brokers such as Straight Through Processing (STP). As a general rule, STP is an execution model where a broker executes its client’s trade orders directly to a liquidity provider or Tier-1 banks.  

Although financial market participants are well-trained and employ the required strategy, they need to know the real STP broker.  

There are many brokers claim themselves as STP broker and this article will guide you to recognise the positive signs of a good STP with Doo Clearing as an example.  

20210318_DC_Real STP Broker 1

1) Transparent 

Being transparent is important and the broker should be able to clarify the execution venue of the requested transaction. As STP brokerages, they need to provide the same ease and cost without the downside of a dealing desk’s higher costs. A lot can be decided by the quality of the service and the liquidity of the markets traded. 

For example, Doo Clearing makes the process smooth and hassle-free for brokerages, fund managers, and other institutional traders.   

Additionally, Doo Clearing has created 100% real-time trading (Direct Market Access and Straight Through Processing mode) and up to 99.99% system availability. 

Consider that, these are signs to measure the level of transparency within the broker. 

2) Cutting-edge Technological Infrastructure 

A cutting-edge technological infrastructure together with financial challenges is needed to connect to Tier-1 banks. Liquidity providers will provide an aggregated price feed to the brokers after gather and blending prices from Tier-1 banks.  

At Doo Clearing, our aggregate prices are across numbers of tier-one bank liquidity providers, for a fully aggregated market depth.   

3) Speed of Transaction  

STP offers faster and better filling of their clients’ orders. Slippage risk can be reduced with a faster transaction sent to the market. Added with cutting-edge technological infrastructure, transactions can be handled super-fast. As a result, it will enable an increase in profits. 

With the transaction speed as low as 1ms trade execution time, Doo Clearing can create the ultimate trading experience.  

4) Aggregation Mode  

Usually, brokers prefer to operate with more than one liquidity provider and they have various execution methods. 

However, with an aggregation mode in Doo Clearing, it responds to a wide range of strategies. So far, Doo Clearing introducing a unique liquidity pool for clients. Through liquidity aggregation, we aggregate the best pricing from all our liquidity providers to offer our clients.   

In the evolving market, Doo Clearing continues to expand the liquidity offerings and update the infrastructure.  

20210318_DC_Real STP Broker 2

About Doo Clearing    

Doo Clearing is part of The Doo Group, aiming to offer an institutional and bespoke level of liquidity access and clearing services for Forex and CFDs in equities, future and commodities, and other financial products.    

With the robust clearing system powered by Doo Tech, Doo Clearing is now serving brokers, broker-dealers, hedge funds, family offices, fund managers, and professional traders globally.    

Currently, Doo Clearing provides liquidity access and clearing services via our regulated entity in the United Kingdom. The Doo Group has other regulated entities in the United States, Mauritius, and Vanuatu, with operating centres in Hong Kong, Dallas, Singapore, Kuala Lumpur, and among others.    

To get started, contact Doo Clearing’s Specialist team today for an insightful preview of how we can bring your brokerage to the next level.   

London Office    

Email: [email protected]    

Website: www.dooclearing.co.uk    

Hong Kong Office    

Email: [email protected]    

Website: www.dooclearing.com   

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