What is Difference Between STP and Market Maker Account in Forex?

STP Account vs Maker Account - STP Account Forex vs Maker Forex Trading Account

STP Accounts

STP Account stands for Straight Through Processing, the STP Account forex brokers will send client orders direct to their Forex Liquidity Provider, the Liquidity Provider is a large bank with deep liquidity to trade on the inter-bank network.

An STP Account provided by an STP broker can either have one Forex Liquidity Provider or many liquidity providers.

The best thing about STP Accounts is that forex traders can place their forex trades immediately with instant execution because they have access to interbank markets via their STP forex broker.

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

MM Accounts

Market Maker Accounts are forex broker accounts where Market Maker forex brokers have a dealing-desk model where they can match orders in house without going to the inter bank exchange market.

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

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