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

DF Markets and the EURCHF: Business continues uninterrupted

Jan 16 2015 19:24:08

DF Markets, a UK-based forex and CFD broker, has just informed its clients that it is well capitalized and its operations continue without any disruptions. Read more

FXCM suffers losses of $225 million after SNB abandoned EURCHF floor

Jan 16 2015 15:51:46

FXCM Inc. has not opened for trading on the New York Stock Exchange after the SNB’s decision Thursday to abandon the Swiss franc peg. Shares of FXCM were 85% down in today pre-market trading. Read more

Alpari UK enters into insolvency after the EURCHF collapse

Jan 16 2015 15:35:19

"The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. Read more

IronFX Global obtains a forex license from Italian regulator CONSOB

Jan 14 2015 17:36:42

IronFX Global, the Global Leader in Online Trading, has announced that it has been granted authorization from CONSOB, the Italian regulator (Commissione Nazionale per la Societá e la Borsa), for the establishment of a new landmark global office in Italy as a branch. Read more

ThinkForex cuts spreads on Oil, Gold and Silver

Jan 08 2015 18:22:55

ThinkForex, a leading forex broker based and regulated in Australia, announced their tightest-ever spreads for Gold, Silver, Light Sweet Crude (WTI) and Brent Crude Oil (BRENT). Read more

FxPrimus eyes on Europe, obtains forex license from CySec

Jan 08 2015 17:59:05

FXPRIMUS, a fast growing forex brokerage regulated in both Mauritius and New Zealand, announced that their European subsidiary, FX Primus Europe (CY) Ltd. has been granted a CIF License from Cyprus Securities & Exchange Commission (CySEC). Read more

Exness reports $163.7 billion in trading volumes in November

Dec 18 2014 17:13:09

Exness, a global forex broker regulated in EU, has reported it monthly trading volumes for November. The total trading volume amounts to 163.7 billion USD, down from 198.8 billion in October . Read more

Alpari’s trading volumes drop to $191 billion in November

Dec 18 2014 16:29:56

The Alpari group of companies announce trading volumes in excess of $191 billion for the period 1-30 November 2014, 13.6% lower than the previous month. No need to worry though, the trading volumes most probably will recover in December due to Russian ruble turmoil in the recent days. Read more

FXCM average daily trading volumes set new record in November

Dec 13 2014 14:48:20

FXCM, the world's second largest forex broker, announced record Average institutional daily volume of $17.1 billion in November and Average retail daily volume of $20.9 Billion, second highest in company history.   NEW YORK, Dec. 9, 2014 (GLOBE NEWSWIRE) -- FXCM Inc. Read more

OANDA sees record trading volumes on fxTrade Mobile plaform

Dec 13 2014 14:33:47

OANDA, a global forex broker headquartered in Toronto, announced that its clients have traded record-high volumes via the fxTrade Mobile platform, available for Android and iOS. Read more