What is Difference Between Straight Through Processing and Market Maker Commodities Trading Account in Commodity Trading?

STP Commodities Trading Account vs Maker Commodity Trading Account

STP Commodities Trading Accounts

STP Commodities Trading Account stands for STP, the STP Commodities Trading Account commodity brokers will send client orders direct to their Commodity Trading Liquidity Provider, the Commodity Trading Liquidity Provider is a large bank with deep liquidity that's required to trade on the interbank network.

An STP Commodities Trading Account provided by an STP commodities trading broker can either have one Commodity Trading Liquidity Provider or many liquidity providers.

The best thing about STP Commodities Trading Accounts is that commodities traders can place their commodities trades immediately with instant execution because they have access to inter bank market via their STP commodities trading broker.

STP Commodities Accounts will not charge commissions, but will charge spread on commodities trades. Because traders have access to interbank market execution, there is no requotes on the commodities orders neither any order waiting for trade execution, the order execution is instant.

MM Accounts

Market Maker Commodities Trading Accounts are commodity broker accounts where Market Maker commodity brokers have a dealing-desk execution model where they can match orders in-house without going to the online commodity market.

Commodity Trading orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This commodities trading broker can make the decision to either execute a commodity order that is the opposite of a commodity trader's order thus if the trader makes a loss the broker makes a profit, & if commodity trader makes a profit the broker makes a loss.