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Is STP trading mode or ECN trading mode better for foreign exchange trading platform?
Many investors who have traded in the foreign exchange market for some time know that the quotation mode of different foreign exchange platforms may be completely different. At present, the most favorable quotation modes in the market are STP quotation mode and ECN quotation mode, which are the best modes without traders, that is, customers submit orders to foreign exchange platforms with such quotation modes. The interests of platform vendors will not conflict with those of customers. All orders are submitted directly to the market and traded at the best price. Another quotation mode like the market maker mode, customers' orders are rarely submitted to the foreign exchange market, and even if they are submitted to the foreign exchange market, they will be traded at a price that is very unfavorable to customers.

At the same time, market makers may also make background settings that are detrimental to the interests of customers. Therefore, investors who are familiar with foreign exchange trading choose STP quotation mode platform or legendary ECN quotation mode as their traders. FXCM is the most famous foreign exchange platform among all STP quotation modes. This quotation mode is called straight-through quotation mode. After the execution of the trading order, the customer will immediately submit it to the foreign exchange commercial bank that cooperates with the foreign exchange platform supplier, and match and close the transaction at the most favorable price. The platform of ECN quotation mode is that customers' orders are submitted to the global foreign exchange quotation market for transaction. The platform of this quotation mode needs very high cost in network construction, and generally it needs at least 20 million dollars to build a most basic network. At present, the market and the platform calling itself ECN quotation mode are basically a cover. For customers engaged in retail foreign exchange trading, the best choice at present is to choose STP quotation platform, while the platform of international real ECN quotation mode requires customers to have huge investment and trading volume restrictions, which small and medium-sized retail foreign exchange trading customers do not have.