STP (Straight Through Processing) vs ECN (Electronic Communication Network)

Straight Through Processing (STP) usually refers to the method of processing Forex trades which routes them “straight through” a broker's servers and onto liquidity providers without having to be re-entered and without any dealing desk intervention. In effect, orders are sent to the liquidity provider without any intervention by the broker, meaning the broker has no conflict of interest – with clients or the liquidity provider – and the only profit is generated on spreads and/or commission markup (if any).

Standard Axi accounts operate under the STP model.

Electronic Communication Network (ECN) brokers are like STPs in that neither has a conflict of interest with clients. The main difference is that the ECN consolidates price quotations from several market participants, with the advantage being that the broker can usually offer a better (lower) spread price to clients.

Axi does not offer a dedicated ECN account, but we do offer a Pro account that has the same characteristics as an ECN account.

Over the Counter (OTC)

Over-the-counter (OTC) trading refers to a decentralized method of trading financial instruments directly between two parties without the involvement of a centralized exchange. Unlike exchange-traded markets, OTC trading happens directly between buyers and sellers in the open market. At Axi, you do this using the electronic trading platform (MT4).