True Stp Forex Brokers

Have you ever noticed that most Forex brokers advertise their price
spreads above all other factors? While this is an important factor to
consider when trading, it is merely one piece of the puzzle that must
be examined.

Certainly, a more important factor is the ability to execute trades at
quoted prices around major market news events such as the monthly NFP
report. As a trader who looks to profit from short-term price moves,
you may not be able to execute your strategy whether manual or
automated. One reason is the fact that a broker may act as the buyer
of a Forex pair while you play the part of the seller. Sound like a
mutually beneficial contract?

At its essence, this relationship pits the trader against the broker
as one participant's interests are opposite of the other's. Simply
stated, if your trade is profitable, the broker realizes a loss.
Employing a Dealing Desk model is not inherently evil (to put it
jokingly). Some may argue that Dealing Desks provided a service for
those individuals who traditionally did not have access to the Forex
market due to high barriers in the form of excessive charges and
substantial deposit minimums. When Dealing Desks fail to perform their
intended role of providing liquidity for retail Forex trades, the
problem usually can be attributed to a breakdown in the firms' risk
management guidelines and/or systems. If not properly managed, a
Dealing Desk can become a huge liability for a broker if steps have
not been taken to offset excessive position risk. As a trader, are you
willing to take this risk?

True STP brokers take the Dealing Desk model employed by most of
world's largest Forex firms and stand it on its head. How? The former
always operates under the premise that the interests of both the
client and the broker are aligned. The STP broker wants it's traders
to, in the words of Spock, "Live long and prosper". This is the case
since the STP broker only makes money when a client executes a trade.
In order for this to be a profitable venture over the long term (and
even the mid term), the broker wants to create an model where traders
will use their appreciating account balances to generate an ever
increasing number of revenue producing trades. This highlights my
earlier point of why having interests that align is sensible to
traders and non-traders alike.

DivisaFX offers True STP trading through a Multi-Bank Currenex Hub
giving clients the ability to execute trades with multiple top tier
banks ensuring efficient execution while eliminating the risks
associated with a standalone Dealing Desk. A true STP broker will not
discriminate against short-term trades as the firm is merely acting as
an agent charging a fee for order execution and clearing. The Divisa
Capital Currenex hub offers Executable Streaming Prices (ESP™) which
give clients access to live, streaming, executable bids and offers
that are available for instant execution on our trading platform.
Requotes and delays are rare as this award winning technology ensures
that a trade is done with the bank or institution providing the price
at that moment. Until recently, the ability to transact directly with
banks via the interbank market was reserved for large institutions.
Finally, the trading public can choose to compete on a level playing
field.

API Connectivity:

Traders using a black box algorithmic trading system or MetaTrader
Expert Advisors can now connect directly to the Divisa Capital
Currenex Hub. Currenex provides access to its multi-bank liquidity
feeds through a FIX gateway (using FIX 4.2 protocol) for quick and
seamless integration.