Dealing Desk vs STP Broker
Dealing desk brokers fill orders internally as counterparty, while STP brokers route orders directly to liquidity providers without intervention.
What it means in practice
The distinction between dealing desk and STP (Straight Through Processing) brokers defines how client orders are handled, which directly impacts IB programme economics. A dealing desk broker acts as the counterparty to every client trade, filling orders from its own book. An STP broker passes orders directly to external liquidity providers without intervening in the execution process. This is the fundamental A-book vs B-book distinction applied to broker business models.
For introducing brokers and forex affiliates, the choice of broker model affects three key variables: conversion rate, commission structure, and client LTV. Dealing desk brokers typically convert more registrations to FTDs because of lower barriers (lower minimums, fixed spreads, simpler onboarding). STP brokers typically produce higher LTV per client because their execution model attracts traders who trade more volume over longer periods. The optimal choice depends on the IB's traffic quality and acquisition strategy.
Many brokers in practice operate hybrid models — internalising some order flow (dealing desk) while routing other orders to liquidity (STP) based on risk management rules. IBs should evaluate the broker's actual execution statistics and slippage data rather than relying on marketing labels. The commission model (lot-based, spread-based, or CPA) often signals the underlying execution model: lot-based commissions align naturally with STP/A-book, while spread-based commissions suit dealing desk/B-book brokers.
Dealing Desk vs STP Broker
Side-by-side breakdown of how these two models compare across key dimensions.
Advantages
- Lower minimum deposits drive higher registration and FTD conversion rates
- Fixed spreads provide cost certainty for beginner traders
- Instant execution without slippage on standard lot sizes
- Often higher CPA rates for affiliates and IBs
Limitations
- Conflict of interest — broker may profit from client losses
- Wider effective spreads increase trader costs over time
- Risk of requotes during high volatility
Advantages
- No conflict of interest — broker profits from volume, not losses
- Tighter variable spreads from aggregated liquidity
- Better execution quality attracts experienced traders with higher LTV
- Transparent pricing increases programme credibility
Limitations
- Variable spreads can widen during news events
- Higher minimum deposits reduce registration volume
- Possible slippage during volatile market conditions
When to choose which
Choose Dealing Desk
Dealing desk brokers suit IB partners targeting beginner traders who value fixed spreads, low minimum deposits, and simple cost structures. The higher registration volume from lower barriers can generate strong CPA-based income, particularly for IBs running broad-reach paid acquisition campaigns where conversion rate is the primary metric.
Choose STP Broker
STP brokers suit IB partners targeting experienced traders who prioritise execution quality and transparent pricing. Lot-based commission structures can generate substantial recurring income because experienced traders execute higher monthly volumes and tend to remain active longer, resulting in higher lifetime commission per referred client.
How Dealing Desk vs STP Broker works across industries
See how dealing desk vs stp broker is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.
How Track360 handles this
Track360 supports both dealing desk and STP broker IB programme structures. Operators can configure CPA, lot-based, spread-based, or hybrid commission models with real-time reporting that tracks volume, commissions, and payouts regardless of the broker's execution model.
Frequently Asked Questions
Common questions about dealing desk vs stp broker, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
A dealing desk broker fills orders internally as the counterparty to client trades. An STP broker routes orders directly to external liquidity providers without intervening. The key difference is conflict of interest: DD brokers may profit from client losses, while STP brokers earn from spread markup or commissions regardless of trade outcome.
Related Terms
Dealing Desk
A dealing desk is a broker execution model where the broker acts as counterparty to client trades, filling orders internally rather than routing them to external liquidity.
STP Broker (Straight Through Processing)
An STP broker routes client orders directly to liquidity providers without a dealing desk, earning revenue through spread markups or commissions.
ECN Broker
An ECN broker routes client orders directly to liquidity providers via an electronic communication network, offering variable spreads and transparent pricing.
Market Maker Broker
A market maker broker acts as the counterparty to client trades, setting its own bid/ask prices rather than routing orders directly to the interbank market.
A-Book vs B-Book Broker
A-Book brokers pass client orders to external liquidity providers, while B-Book brokers take the other side of client trades internally. The model affects spreads, execution, and IB economics.
Lot-Based Commission
Lot-based commission is a broker affiliate or IB payout model where partners earn a fixed amount for each traded lot generated by their referred clients.
Spread-Based Commission
A commission model in Forex IB programs where the introducing broker earns a portion of the spread (the difference between bid and ask price) on every trade their referred clients execute.
Introducing Broker (IB)
An Introducing Broker is a partner who refers new traders to a Forex or CFD brokerage in exchange for ongoing commissions, typically calculated on the trading volume or revenue generated by those referred clients.
Continue Learning
Free structured courses that cover this topic and more.
Forex IB Program Management
Lot-based and symbol-based commission structures, multi-level IB hierarchies, MT4/MT5 integration, and per-partner deal terms built for brokerages. From onboarding to payout.
Scaling Forex IB Networks
Regional IB hierarchies, multi-currency payouts, advanced deal logic, and operational strategies for brokers scaling from 10 IBs to 500+.
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