Brokers News

FXOpen to Launch STP Accounts

Aug 21 2013 14:01:09 GMT
By
Maria Nikolova , Forexbrokerz.com Find me on Google+
FXOpen, one of the leading Forex brokers, today announced its plans to launch STP (Straight Through Processing) accounts starting from September 2, 2013. 
 
The move will not only allow new clients to open dedicated STP accounts to trade on the MT4 platform, but will also affect existing accounts. The change will not have any impact on Micro and ECN accounts but will translate into automatic transfer of all Standard accounts to the new STP model of execution. To give you an idea of the scope of the move, I'll note that currently the broker boasts 222,875 active Standard accounts. 
 
But the broker is not forcing anyone to accept the new model: that is why all owners of Standard accounts who do not wish to be moved to STP will have to close all of the open positions and set up new Standard accounts in their MyFXOpen personal back offices not later than 2 weeks from the designated date (September 2nd).
 
Honestly, I'm not sure that anyone sees any disadvantages from such a change and would prefer to stick to market-making. But let's enlist at least some of the advantages of the STP model to that of market makers. For starters, in the case of STP, the broker stops being your counter-party – that is, your losses are no longer the broker's gains. Another big advantage of the STP model is that the broker sends your orders to the market where they will be executed – the obvious pluses of this are the access to a deeper pool of liquidity, the faster execution and the lower chance of re-quotes.
 
But to note a slight disadvantage of the STP type of order execution, I have to mention the somewhat wider spreads, as the broker generates its profits thanks to a small commission included in the spread. Currently, the spreads on Standard accounts with FXOpen are fixed, between 2 and 4 pips for major currency pairs. Let's hope they don't grow much as a result of the change.
 
FXOpen is about to join a long list of FX brokers with STP execution. It will be nice to see other accounts (the Micro, for example) migrate to STP too.
 

About FXOpen

 
FXOpen is a global Forex broker, registered in New Zealand. Unlike so many brokerages founded on commercial incentives FXOpen grew from bottom up and started as an educational center. It launched brokerage services in 2005 and has ever since focused on traders' interests. FXOpen was also the first one to realize that what traders really needed were Micro accounts and that the Islamic audience required a special type of Shari’a compliant accounts. 
Working from the very beginning with the world’s most wide-spread and user-friendly trading platform MetaTrader (MT4) FXOpen had gained the deepest knowledge possible about the technology. In 2009, the first ever MT4 ECN trading platform, coupled with 0.1 minimum lot, super-fast execution and advanced Money Management technology (PAMM accounts), was introduced to the market, thus, completing the ECN technological revolution in the MT4 FOREX trading environment.
TAGS: fxopen  fxopen forex broker  fxopen accounts  forex accounts  forex order execution  forex trading  stp  straight through processing  standard forex accounts  spreads  pips 

More news about FXOpen

More Forex Brokers News

Up to $7000 welcome bonus with HY Options

Jul 03 2015 09:02:01

HY Options, a binary options broker authorized and regulated by CySec, is rewarding all new clients a welcome bonus of up to $7000. HY Options provides binary options trading in a professional environment on a wide range of products including currencies, metals, commodities, indices and stocks. Read more

OctaFX UK announces official partnership with Southampton Football Club

Jul 02 2015 14:15:04

OctaFX joins the ranks of forex brokers sponsoring football teams. Read more

Playtech to acquiare AvaTrade for US$105 million

Jul 02 2015 14:00:35

Playtech is pleased to announce that its subsidiary, TradeFX Limited ("TradeFX"), has entered into a share acquisition agreement under the terms of which it will acquire the entire issued share capital of Ava Trade, an online B2C CFD broker over which TradeFX had secured an option to purc... Read more

SpotOption introduces Spot+ platform: A binary options industry game-changer

Jul 01 2015 18:07:32

The new features QCenter, Communicator, Autodialer, Mailer Database, and Refer a friend allows binary options brokers to significantly increase the efficiency of their sales and marketing departments and reduce manpower. SpotOption announces the first integrations of the latest platform, Spot+. Read more

Ayondo announces forex accounts insurance of up to £500,000

Jul 01 2015 17:34:49

Ayondo, a German owned social trading network, today announced additional customer account insurance protection of up to GBP 500,000 in excess of FSCS insurance. Read more

13 499 Plus500 UK client accounts unfrozen

Jun 30 2015 19:33:06

Plus500, a leading online forex and CFD trading service provider, today announces a trading and remediation update. Two months ago the UK based forex broker was forced by FCA to freeze the accounts of thousands of customers for money laundering checks. Read more

Libertex: Forex Club's innovative trading platform

Jun 29 2015 23:02:45

Forex Club's new trading platform offers a user-friendly interface and incorporates some really innovative concepts. Beginners will feel comfortable with the idea that they can't lost more than their investment in a given position. Read more

UK boker One Financial Markets obtains FSP license in South Africa

Jun 26 2015 16:03:18

One Financial Markets joins Markets.com, Saxo Bank and IG Group in growing SA retail forex market. The non-banking financial sector of Africa’s second largest economy  (after Nigeria) is regulated by Financial Services Board (FSB). Read more

Alpari decreases leverage on EUR currency pairs in anticipation of Greek default

Jun 26 2015 15:17:57

Looks like the Russian forex broker has learned the lesson. Five months ago its subsidiary Alpari UK sustained severe losses  and declared insolvency after the Swiss National Bank abandoned the three-year old cap on EURCHF. Read more

Dukascopy exits Japanese retail forex market

Jun 26 2015 12:37:13

Dukascopy, the Swiss forex bank specialized in forex trading, has decided to stop providing trading services for customers who are resident in Japan. Japanese clients can't open new positions since June 21 and should close all open positions until July 4. Read more