Since the late 1990s and into the 2000s the Forex market and the Forex industry has seen dramatic changes. Regulatory changes in the US basically pushed most brokers offshore or pushed them to the UK or Australia.
Many brokers also saw the need to use price aggregation systems to pool their liquidity providers. With recent advances in technology these price feeds became Tradable to the trading public. In the past would’ve been very difficult for major banks or large the quiddity providers to take smaller or retail trades.
Nowadays by using an STP Forex broker one can trade through to the banks without having any of these issues. This means to the client that they are trading on optimal prices and they can be assured of best execution practices.
Some of the issues that face traders that do not use an STP Forex broker are:
Might be subject to re-quotes or delays in execution
Might experience slippage or having prices executed well outside the reasonable range
Might turn off trading during news events or times of market volatility
These are just some of the issues that traders experience when they use a marketmaker or a non-STP Forex broker.
By using an STP Forex brokers one can be assured of standardize pricing and best trade execution practices.
To learn more please visit www.clmforex.com
Disclaimer: Trading of foreign exchange contracts, contracts for difference, derivatives and other investment products which are leveraged, can carry a high level of risk. These products may not be suitable for all investors. It is possible to lose more than your initial investment. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. A Product Disclosure Statement (PDS) is available from the company website. Please read and consider the PDS before making any decision to trade Core Liquidity Markets’ products. The risks must be understood prior to trading. Core Liquidity Markets refers to Core Liquidity Markets Pty Ltd. Core Liquidity Markets is an Australian company which is registered with ASIC, ACN 164 994 049. Core Liquidity Markets is an authorized representative of Direct FX Trading Pty Ltd (AFSL) Number 305539, which is the authorizing Licensee and Principal.
