What is Straight Through Processing (“STP”) and why is it important?

As a STP broker, we pass on all the trades to the Interbank Market via our Liquidity Providers.

This is in contrast with most of the brokerages out in the market that are Market Makers. Market Making brokerages may take advantage of the fact that majority of retail investors are making losses and they can hence profit from the losses by internalizing the trades instead of passing on the trades to the Interbank Market. While it is not illegal to do so, it might not be fully aligned with investors' interest, which is our main priority here at Omada!