STP: stands for Straight Through Processing STP is a unique alternative which optimizes the speed of transactions by avoiding any interventions of a dealing desk, including no requotes. Orders are automatically passed through to the company’s liquidity providers, which then allows the trade orders to be processed in an efficient and timely manner that will meet the highest level of clients’ satisfaction. An STP broker in effect will allow its clients to trade during the release times of financial news without any restrictions. No strategy restrictions, trade as you wish whenever you want to. An STP broker does not trade against clients orders and only makes money from the trading volume by either adding a small mark-up on the spread and/or commission.
Therefore, there is no conflict of interest. If the client wins or loses on a trade, the broker receives the same amount. Overall, however, there is an intrinsic advantage to the broker if the client is successful with his/her trading as they will then trade with more volume for a longer period, resulting in greater profits for both parties, with full transparency.