Do you know how to define the differences of STP and OTC brokers?
FBS is a STP broker and there are some points that confirm the fact.
Here we will explain why we can assure you that FBS is a complete STP broker and the broker does not act as a Market Maker(OTC model).
There is no trading restrictions in FBS’s MT4 or MT5. You can trade scalping, with EAs or even arbitrage in general.
This is because there is no conflict of interest between traders and FBS, and the broker does not need to restrict any profitable trading tools/methods.
This is one important thing that proves that FBS is a complete STP broker.
- No trading restrictions
- Because the broker doesn’t hedge(cover) clients’ orders
- The broker is not a Market Maker
- Meaning that it is a STP model
Some brokers defines that they are STP model but restrict some trading methods, because they are not really a complete STP broker but half STP and half Market Maker.
No Profit Cancellation
There hasn’t been any comments or reviews mentioning profit cancellations caused by FBS when they withdraw their funds.
By trading with this true STP broker, you do not need to worry about your funds or profits, but you can trade as you want and make profits as much as you can with any methods.
FBS only prohibits “latency arbitrage” especially on CFD products.
STP is not for CFDs
Although FBS wouldn’t cover orders of clients for Forex tradings, CFD is different.
CFD is an OTC derivatives and it needs to be hedged and managed by FBS.
SO in case you are trading CFDs with FBS, you are trading with FBS and there is a conflict of interest.
CFD is always delivered with OTC environment with any brokers but not just FBS.