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. Absence of a Dealing Desk intervention is what 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 will be able to process its clients orders instantly without 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 something which most traders regard as very crucial. Straight Through Process execution will also in effect will allow its clients to trade during the release of financial news reports without any restrictions.

Straight Through Processingbitcoin brokers benefit from having several liquidity providers and an increase in the number of providers in the system means better fills for the client. 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 two movings so that 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's 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 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.

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 markup to the spread they receive from their liquidity provider when getting quoting of bid/ask rate. The Bitcoin STP Broker will apply this markup 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 markup.

Reasons why BTCUSD Traders Choose Straight Through Processing Brokers

Clients often choose to execute trades 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.

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

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

Client transactions with an Bitcoin STP Broker means there is anonymity for the client as there is no Dealing Desk monitoring the transactions of orders coming in from each client. The trading Bitcoin 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 bitcoin trading quote from these network through their own Electronic Communication Network which connects directly to the Interbank network of banks, they are known as Bitcoin ECN Broker technology brokers, short form is Bitcoin ECN Broker.

Bitcoin ECN Broker will show the entire bid and ask offers currently available in the btcusd trading market from banks. An Bitcoin ECN Broker will allow traders to 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 trades quickly & instantly 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 Crypto Currency STP Online Broker

Has many liquidity providers, but selects the best at any one time automatically 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 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 from which to trade.

The Bitcoin ECN Broker a trader will have to look at many streaming quotes at the same time & select one, this streaming bitcoin trading 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 interchangeably, 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 looking 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 bitcoin trading 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 bitcoin 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 bitcoin platform to live stream these multiple bitcoin price quotes, this type of platform wouldn't make the best trading platform to trade with. Furthermore if you open an Bitcoin ECN Broker account you will have to pay additional commissions on top of 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 that the Bitcoin ECN Broker isn't the cheapest execution technique & will charge traders extra commissions adding onto your transaction costs.

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

Bitcoin STP Brokers do not have a dealing desk and thence this provides for full trade transparency, faster and better order fills. Full 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 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. The absence of a Dealing Desk is what makes the Electronic Communication Network the best choice for many 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 to trade during the release times of financial news reports without any restrictions. Other online crypto 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 due to high internal liquidity rate and reliable inter bank partners they have.

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

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