STP Forex brokers

STP - Straight Through Processing. 

STP broker is a hybrid model between Market Maker and DMA/STP. Sometime it routes your order to the market (acts as an DAM/STP broker - if you win) but sometime it does not (display it own quotes and acts as a Market Maker - if you lose).

• The good: more accurate prices and transparent compare to Market Makers broker, smaller conflict of interest.
• The bad: re-quotes and order rejections.

How STP brokers make money? They have two ways:

• Routes your order to the market and add spread mark-up (similar to DMA/STP)
• Acts as Market Maker and earn from your lose.

Is it a win-win situation where broker always profit? Probably not but it does work most of the time!