DMA/STP Forex brokers
DMA - "Direct Market Access", STP - "Straight Through Processing"
DMA/STP brokers act as counterparty and transfer client's order to the liquidity providers (market execution), as DMA/STP brokers have good numbers of liquidity providers the orders will be filled at the best available prices.
- The good: no re-quote.
- The bad: The market is always moving so the filled prices may not the same as what displayed on trading platform.
How DMA/STP brokers make money?
- The broker will fill your orders at the best market available prices but the price you actually get is something higher, the broker will add small mark-up to the actual price, it's their profits.
- Unlike ECN brokers, DMA brokers do not charge commission on your order.