Why Traders Choose Bitcoin STP Broker and The Difference Between Bitcoin STP Broker and Bitcoin ECN Broker

Bitcoin ECN Meaning

Bitcoin STP Online Broker or Straight Through Processing, is the name given to brokers that, when upon receiving a client order they will pass on the crypto orders directly to their Bitcoin Liquidity Provider. Liquidity providers can include Banks and as such there's no inter-mediary involved in the order processing in other words the Straight Through Processing does not filter the crypto orders through a Dealing Desk, DD. Absence of a Dealing Desk, DD intervention is the factor that makes this electronic platform a Straight Through Processing(STP).

With the absence of an intermediary process (dealing desk) the Bitcoin STP Broker, Straight Through Process execution method will be able to process its clients orders instantaneously without having any delay. This makes Bitcoin STP Brokers the most recommended broker type. The Straight Through Processing Brokers will also not send re-quotes to its clients/customers something which many traders regard as very crucial. Straight Through Process execution will also in effect will allow its clients/customers to trade during the release/announcement of financial news reports without any restrictions.

Straight Through Processingbitcoin brokers benefit from having several liquidity providers and an increase in the No. of providers in the system means better fills for the clients. A large number of Bitcoin STP Brokers will use banks trading on inter bank markets as their liquidity providers.

Before Reading Spot the difference between these 2 movings so that as the movings below do not seem like a repetition.

Reasons why Brokers select STP execution
Reasons why Traders Choose STP execution

Reasons why Crypto Brokers choose to be Bitcoin STP Broker

In addition to the fact that most traders prefer Straight Through Processing due to fact that a client's losses aren't a broker's profit. It is therefore in crypto broker 's interest for the Client to make profitable trades, STP execution often implies that there is No Dealing Desk NDD and subsequently has less expenses through its staff salaries.

An Bitcoin STP Broker is compensated through a markup on the spread it obtains from its Bitcoin Liquidity Provider and/or commissions imposed for each trade. As most liquidity providers of Straight Through Processing execution are large banks on the online Interbank market, majority of which offer fixed spreads this allows the Straight Through Processing Brokers to provide both fixed & variable spread to its clients/customers.

Every time a client opens a trade through a Straight Through Processing(STP) platform, the Bitcoin STP Broker will always make a profit. As Straight Through Processing(STP) add a small and marginal mark-up to the spreads they receive and get from their liquidity provider when receiving quoting of the bid-ask quotes. The Bitcoin STP Broker will apply this mark-up by a certain amount of fractional pips to the bid and ask bitcoin price that it receives from its best bid/ask Bitcoin Liquidity Provider before passing the rates onto client via straight through processing electronic platform.

As the client places the trade order through the Straight Through Processing(STP)STP platform, the orders are then sent directly to the Bitcoin Liquidity Provider and as such the Bitcoin STP Broker executes the same orders as the client at a slightly better bitcoin price which is the mark-up.

Reasons why BTCUSD Traders Choose Straight Through Processing Brokers

Clients often choose & select to execute trade transactions via an Bitcoin STP Broker as it often implies there is no Dealing Desk, which in turn means that the crypto broker is more transparent with the clients/customers.

The Traders enter trade positions in to a true market instead of an artificial market that may be developed by a market maker - MM. Client trades obtain better and faster fills through an Bitcoin STP Broker.

The better & faster fills are obtained and received directly from the many competitive market bids and provides coming through STP liquidity providers, which provide for deeper liquidity within the btcusd market & in turn this implies lower execution btcusd prices for the client.

Client transactions with an Bitcoin STP Broker means there is anonymity for the client as there is no Dealing Desk, DD monitoring the transactions of orders coming in from each client. The Trade orders are instead executed automatically through the btcusd market network anonymously.

Another Type of Online Crypto Broker is Bitcoin ECN Broker

What is an Bitcoin ECN Broker?

Electronic Communications Network- Bitcoin ECN Broker provide traders with real time data quotes straight from the network of banks that trade Bitcoin- The Interbank market. Since these Bitcoin ECN Brokers offer real time data quote from these network through their own Electronic Communication Network which connects directly to the Interbank network of banks, they are known as BTCUSD ECN Broker technology brokers, short form is ECN Broker.

Bitcoin ECN Broker will show the entire bid and ask offers presently available in the btcusd trading market from banks. An Bitcoin ECN Broker will allow traders to open and place their orders straight through to the btcusd market. Liquidity is not provided by the crypto broker but by this interbank network of banks. This way bitcoin traders through an Electronic Communication Net-work gets high liquidity and execute trade positions quickly & spontaneously without getting re-quoted.

Most Traders ask which is the best between the Bitcoin STP Broker and the Bitcoin ECN Broker? & What is the difference between these two?

BTCUSD STP Online Broker

Has many liquidity providers, but selects the best at any one particular time automatically/mechanically for the trader. Therefore when one places a trade the orders will be passed direct to this inter-bank.

Therefore Bitcoin STP Broker is like Bitcoin ECN Broker the only difference is that the Straight Through Processing Brokers automatically chooses the best one at that particular time and does it automatically for the BTCUSD trader.

Bitcoin ECN Broker

Has many liquidity providers from which a trader will see all at same time and select which to trade, It is like having 10 crypto brokers to select and choose from which to trade.

The Bitcoin ECN Broker a trader will be required to look at many streaming quotes at the same time & select one, this streaming bitcoin quote will have varying spreads and a bitcoin trader selects the low spreads.

There is no much difference between Bitcoin ECN Broker and Bitcoin STP Broker, that's why some traders or some online brokers will use the term inter-changeably, because the only difference between Straight Through Process execution from the Electronic Communication Network execution is that the Bitcoin STP Broker only chooses to have only one Bitcoin Liquidity Provider while Bitcoin ECN Broker implements a wide variety of liquidity providers & it is up to the trader to choose which Bitcoin Liquidity Provider to choose from while trading.

According to reviews, these trading brokers are also have the low spread, henceforth if you are searching for the low spread it's good to choose an Bitcoin STP Broker.

Most online crypto brokers don't want to clutter the traders work space with multiple bitcoin trading streaming bitcoin quote from various different places which might confuse the trader, especially the novice bitcoin traders who don't know what is what, that is why most brokers might be Bitcoin ECN Broker but only choose to display only one streaming quotes from only one inter bank, therefore becoming more of an Bitcoin STP Broker rather than an Bitcoin ECN Broker, but the model of operation is basically one & the same.

If you were to open a account with an Bitcoin ECN Broker you would get like 10 quotes of Bitcoin from different banks and to trade you would have to chose the bitcoin trading quote from one of the banks. 10 bitcoin price quotes for btcusd would make your bitcoin trading platform workspace too crowded (An Bitcoin ECN Broker Lists Spreads from many liquidity providers). Another thing is that you'd need a more complex platform to live stream these multiple btcusd price quotes, this type of software wouldn't make the best platform to trade with. Furthermore if you open an Bitcoin ECN Broker account you'll have to pay extra/additional commissions on top of the spreads. This is also another reason why to choose Bitcoin STP Broker since unlike Bitcoin ECN Broker, Bitcoin STP Broker do not charge commissions. This means the Bitcoin ECN Broker isn't the cheapest execution technique & will charge the traders extra commissions adding onto your trade costs.

Bitcoin STP Brokers offer the best trading liquidity conditions for clients to make trade positions

Bitcoin STP Brokers do not have a dealing desk and thence this provides for full trade transparency, faster ==22==and better order fills. Full businees transparency means this type of broker doesn't create an artificial trading market environment for clients, but instead portrays a trader the real-time data bitcoin quote from an electronic network of banks and allows the bitcoin trader to enter into the true market conditions created by the various different market participants.

Straight Through Processing - is the name given to brokers that: upon receiving of a client order they will pass on the crypto orders directly to the network of banks & as such there is no intermediary who will be involved in the order execution in other words Straight Through Processing(STP)STP Execution will not be filtering orders through a Dealing Desk, DD. The absence of a Dealing--DeskDealing--Desk,--DDDeskDealing--Desk(DD) is what makes ECN the best choice for most traders.

With the absence of such an inter-mediary process such as a bitcoin trading dealing desk the Bitcoin STP Broker is able to process its clients orders without any delays. In addition these brokers do not send requotes to their clients something which most Bitcoin Trade traders regard as a huge advantage.

This also enables the Straight Through Processing STP Brokers to allow its clients/customers to trade during the announcements times of financial news reports without any restrictions. Other online cryptocurrency brokers might not have the liquidity of an Bitcoin STP Broker and may in turn lock out trading for few minutes before and after a news release.

Bitcoin Straight Through Processing Brokers provide the best 24-hour execution and access to order execution because of high internal liquidity rate and reliable inter bank partners they have.

Difference Between STP & ECN - Bitcoin ECN Meaning - Bitcoin STP Meaning

More Courses: