I want to know about STP and ECN Account
Hello @_GS!
Thanks for visiting and participating in the BabyPips.com forum! We’re happy to have you!
If you’re eager to start learning about Forex, we suggest that you make your way over to the School of Pipsology , our very own guide for teaching beginners how to trade the foreign currency exchange market. We start you off in Kindergarten, teaching you Forex basics, and you progress all the way to College, learning more complex subjects. This is all self-study, done at your own pace. Along the way, stop and take one of the 50 forex trading quizzes to make sure you’ve retained the knowledge.
You can read more about STP and ECN brokers in one of the School’s lessons.
Enjoy!
Jess
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its a most fine post with so many information’s , thanks for your nice reply again.
Welcome check out babypips school
in my trading career at the early stage i was profitable in demo with BB but when trading in a real account my all approach works to fail and i really disappointed.
to learn Forex market perfectly is important to keep survive successfully in there but i think that’s not possible by trading in demo as practice account. time has change now , demo really an old version, right now traders practice in a micro account even though loss occurs so many times.
Yes, a demo account is one of the best ways to learn forex, side by side take classes for trading basics and trading strategy. You can find many more educational resources on this.
ECN you have tighter spreads but pay commission. Standard you have wider spreads but don’t pay commission.
Wow, thanks for the explanation.
Challenge yourself in demo account and experiment different strategies. You could start from 10 usd in demo cent account and set a goal to turn this 10 usd into 100usd then into 1000usd and so on. You will get better from time to time.
The STP (straight through processing) technology requires no dealing desk and this model is used by lots of brokers today. All orders are routed to the broker’s liquidity providers and prices are executed at the bid/ask rate provided by liquidity providers. These providers here are big banks, hedge funds and investors that effectively act as counterparties to each trade. There are lots of similarities between ECN and STP, the main difference is routing. ECN acts like a kind of hub, you know. The hub acts effectively as the major liquidity source, as it’s represented by banks and other major market players. Also there is a difference which relates to minimum lot size.
I prefer STP brokers because order execution is typically very fast, although I don’t think there’s anything wrong with ECN brokers either.
to understand this, you need to devote a lot of time to practice and training, maybe any Forex courses will be useful to you?
1: Learning the basics (currency pairs)
2: Learn the software (MT4, MT5)
3: Learn with demo accounts.
4: Find a reliable service provider.
5: Use the service provider’s resources such as tools and guides.
6: Try out the support services of the provider.
7: Learn about strategies and try them all out.
Babypips school for ya.
Babypips is the best place to learn.