Successful trading in the currency market is built on a combination of critical factors. This includes a trading system with strong performance metrics, a well-structured trading algorithm (plan), strict discipline, and the ability to keep emotions out of decision-making.
Aside from that, the profitability of trading on the Forex market largely depends on the brokerage company that offers the necessary services and solutions for effective trading.
Brokers generally fall into two categories: dealing centers—also known as “kitchens”—and NDD brokers, which are further divided into ECN and STP types. Traders with solid experience in the financial markets normally choose to work exclusively with brokers that provide NDD order execution.
Professional traders open accounts only with STP execution. You might wonder—why is that? For seasoned traders, the answer is obvious. But for beginners, it’s worth breaking it down.
To understand the benefits of STP execution, let’s compare it to how a typical dealing center (DC) operates.
Unfortunately, DCs still dominate much of the local brokerage market. Their biggest drawback? A potential conflict of interest between the client and the company. In such cases, the “kitchen” ends up trading against the client. And that’s where many of the issues begin.
Most of the time, things may go smoothly, but the risk is always there. DCs can close trades at stop levels, and traders constantly face requotes and slippage.
Dealing centers fully control pricing and sometimes offer clients adjusted quotes. Since all trader deposits circulate within the company, DCs primarily profit from client losses.
An STP broker works differently. STP (Straight Through Processing) is a model where orders are sent directly to the currency market. The trader receives real-time quotes from liquidity providers partnered with the broker. STP brokers execute trades on behalf of the client without manipulating prices or interfering in the trading process. Instead of profiting from losses, the STP broker earns a commission from each trade, which means they’re personally interested in your success.
🔹Instant execution of orders at the best available quotes
🔹Minimal spreads
🔹No interference from the company in the trading process
🔹No restrictions for scalping strategies
🔹Direct access to the interbank market for all trades
The first thing to check is the minimum deposit requirement. Mini and micro accounts simply don’t exist under the STP model, because such small sums aren’t of any interest to the broker or liquidity providers. Typically, an STP account starts at $500 to $1000, although in rare cases, it may be slightly lower.
Another key indicator is the ability to place pending orders close to the current market price of a financial asset. And finally, a true STP broker won’t impose any restrictions on trading strategies or systems, whether manual or automated.
There are very few brokers in the market that actually operate on a true STP model. And even fewer that you can really trust, especially considering the higher deposit requirements. One company that stands out and is definitely worth taking a closer look at is Gerchik & Co: an experienced and reliable firm that’s been earning traders' trust for over a decade.
The president of the company is none other than Alex Gerchik, one of the most respected traders of our time. There’s no need for a detailed introduction, Gerchik’s reputation speaks for itself. And naturally, any company under his leadership earns both respect and trust.
At Gerchik & Co, you can open an account starting from $100. There are no limitations on trading strategies: you’re free to use any system you prefer. All trades are executed directly on the interbank market. And most importantly, Gerchik & Co earns only from commissions, with fixed rates depending on the account type. There are no hidden interests or conflicts—just transparent conditions.
If you’re a professional looking for perfect execution without delays and ideal trading terms, an STP broker is exactly what you need. And if you’re just starting out—but want to avoid non-trading risks—then working through an STP system with Gerchik & Co is a smart and secure choice.
Trade with STP Broker
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