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.
What it means in practice
An STP broker (Straight Through Processing) is a type of Forex broker that sends client trade orders directly to liquidity providers without manual intervention from a dealing desk. The broker acts as an intermediary, passing orders through to the interbank market or other liquidity venues. Revenue is generated primarily through spread markups added on top of the raw spreads received from liquidity providers.
STP execution is positioned between market maker models and full ECN (Electronic Communication Network) models. Unlike market makers, STP brokers do not take the opposite side of client trades, which reduces conflict of interest. Unlike ECN brokers, STP brokers may not provide direct access to an order book. Some brokers operate hybrid models, routing different order types through STP or ECN channels depending on size and instrument.
For introducing brokers and affiliate partners, understanding a broker's execution model matters because it affects the commission structures available. STP brokers typically offer spread-based commissions or forex spread markups, where the IB earns a portion of the markup on each trade. This creates ongoing revenue tied to trading volume.
How STP Broker (Straight Through Processing) works across industries
See how stp broker (straight through processing) 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 commission structures used by STP brokers, including spread-based commissions, lot-based commissions, and pip rebates. Operators can configure per-partner deals that align with their execution model and IB network requirements.
Frequently Asked Questions
Common questions about stp broker (straight through processing), how it works in affiliate programs, and where it shows up across Track360's supported verticals.
An STP (Straight Through Processing) broker routes client orders directly to liquidity providers without a dealing desk. The broker earns revenue through spread markups rather than taking the opposite side of client trades.
Related Terms
ECN Broker
An ECN broker routes client orders directly to liquidity providers via an electronic communication network, offering variable spreads and transparent pricing.
Liquidity Provider
A liquidity provider is a financial institution or entity that supplies buy and sell quotes to brokers, enabling trade execution at competitive spreads.
Spread
The spread is the difference between the bid (sell) and ask (buy) price of a financial instrument, serving as a primary revenue source for Forex brokers and a basis for spread-based affiliate commissions.
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.
Forex Spread Markup
A forex spread markup is an additional pip value added to the base spread by a broker, often used to fund IB commissions or revenue sharing.
Pip Rebate
A pip rebate is a commission structure where introducing brokers earn a fixed amount per pip of spread on each trade executed by their referred traders, with the broker adding a markup to the spread to fund the rebate.
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.
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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