Brokers News

FXOpen to Launch STP Accounts

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 

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