Vextrader is a Straight Through Processing (STP) broker
Vextrader is a Straight Through Processing (STP) broker that operates in the Forex Market
Vextrader sends the orders that have been placed by either the client or fund managers directly to the liquidity providers without passing these orders through a dealing desk.
This provides a means of ensuring that orders are processed in a “straight-through” fashion, devoid of delays and requotes. Thus the word “straight-through” is used more aptly to describe the process by which orders are handled.
How does STP Work?
At a daily turnover of $5.3trillion a day, the forex market has the reputation of being the biggest and the largest market of all, open 24/7 round clock.
To understand how Straight Through Processing works.
What happens to my orders? What is behind the mechanism of placing and order and seeing it executed on the charts?
There are several parties in the process of placing an order and obtaining executions for those orders.
- There is a buyer. In a sell trade, the buyer is the counter-party.
- There is a seller. In a buy trade, the seller is the counter-party.
- There is the broker who brings these two parties together.
- There is a liquidity provider who provides pricing for the participants.
What STP do when an order is placed , is to locate and match the order a counter-party who is ready to pick up the order at the agreed price.
Advantages of Vextrader STP Business Model
No conflict to interest – One big advantage with Vextrader STP business model is the elimination of conflict of interest in the execution pattern.
By not acting as counter-parties, Vextrader do not profit from the losses of their clients. They profit only from commission, or markup to the spread.
What You See is What You Get – With Vextrader STP business model, what you see is what you get. There are no delays in order fulfillment and no re-quotes.
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